KARACHI, May 28: The KSE 100-share index on Monday breached through the fourth consecutive barrier in a row followed by fresh heavy buying in cement, banking and oil shares, which still have a potential of capital appreciation.
The index’s march to its next immediate target of 13,000 points level is narrowing down each session on the strength of leading base keeping bears guessing how to react to the massive bull onslaught.
Although it finished well below the session’s peak level of 12,862.97 at 12,831.09 on late selling, up by 98.68 points but bulls were not inclined to loosen their grip on the current squeeze, technical corrections here and there notwithstanding. OGDC, PTCL, Pakistan Oilfields were among the major contributors to the sustained rise.
The KSE 30-share index also maintained its upward drive and finished with a fresh rise of 112.20 points at 16,009.29 points.
Bulk of the support remained confined to the cement sector on reports of higher earnings followed by major boost in exports and D.G. Khan and Lucky Cement closed around their upper locks.
Although the national budget is still about two weeks away, on June 9, investors have started taking positions on those counters which could possibly be the chief beneficiaries of the new fiscal steps.
“There are, however, no leaks about the tax relief, analyst Ahsan Mehanti said, adding “but talk of investment-friendly budget is getting currency in the market circles”.“I don’t call it the advent of pre-budget buying euphoria,” analyst Ashraf Zakaria said, adding “but some of the leading bulls have made it look so”.
For the last couple of sessions bank, cement and oil shares are heading to new highs on reports of higher corporate earnings rather than the budget perceptions of their managements and the investors, some others said.
“The rumoured size of the budget at Rs1.5 trillion, with expected growth rate of about seven per cent, but higher rate of inflation around eight per cent indicate positive pointers about the state of the economy,” analyst Hasnain Asghar Ali thinks.
In the prevailing political uncertainty and tension between the contenders of power could hardly allow any government to go with a tough budget and well-informed brokerage houses “have rightly bought this idea and are after those stocks which could form the positive list,” analyst Faisal A. Abbas observed.
Plus signs dominated the list under the lead of Bata Pakistan and Rafhan Maize Products, up by Rs12.10 and Rs78, followed by JS Global, Mirpurkhas Sugar, Pakistan Tobacco, Pakistan Refinery, Pakistan Oilfields, HinoPak Motors, Atlas Battery, AKD Capital, Treet Corporation and JS & Co, which posted gains ranging from Rs5 to Rs11.20.
Pakistan Engineering and Siemens topped the losers, off by Rs8.75 and Rs76. Others fell fractionally barring Pakistan Resource Insurance Co, Fazal Textiles, Al-Ghazi Tractors, Ghani Glass and Central Insurance, off by Rs3.10 to Rs5.
Trading volume fell from the weekend total of 410m shares but on the higher side of the daily average at 360m shares as gainers held lead over losers at 258 to 123, with 35 shares holding on to the last levels.
D.G. Khan Cement on higher exports topped the list of actives, up by Rs5 at Rs105.25 on 36m shares followed by Askari Bank, up by Rs2.50 at Rs97.95 on 31m shares, Lucky Cement, higher by Rs5.15 at Rs108.15 on 26m shares, PTCL, firm by Rs1.15 at Rs52.95 on 20m shares, Pakistan Cement, steady by Re1 at Rs14.75 on 19m shares, OGDC, firm by 70 paisa at Rs122.95 on 17m shares and Bank Alfalah, off 70 paisa at Rs56.65 on 9m shares.
Other actives were led by Fauji Cement, up by 75 paisa on 11m shares, Bank of Punjab, firm by 25 paisa also on 11m shares and Pakistan Oilfields, up by Rs6.40 on 9m shares.
FORWARD COUNTER: D.G. Khan Cement also led the list of actives on the cleared list and was quoted higher by Rs4.90 at Rs105.25 on 9m shares followed by Lucky Cement, higher by Rs5.20 at Rs109.20 on 8m shares and Askari Bank, up by Rs2.85 at Rs98.75 on 4m shares.
PTCL followed them, up by Rs1.40 at Rs53.40 on 4m shares and Bank Alfalah, lower by 29 paisa at Rs57.25 on 3m shares.
DEFAULTER COS: Active trading was also witnessed on this counter as half a dozen companies came in for fresh buying under the lead of Norrie Textiles, up by 15 paisa at Rs2.75 on 0.690m shares.
Other actives were led by Zeal Pak Cement, up by 25 paisa at Rs5.20 on 0.677m shares, followed by Nimir Chemicals, steady by five paisa at Rs3.45 on 0.322m shares and Nazir Textiles, higher by 55 paisa at Rs2.25 on 0.238m shares.
Pangrio Sugar rose by Re1 at Rs6 on 0.174m shares, while Zahoor Textile was quoted higher by 20 paisa at Rs1.20 on 0.195m shares.
DIVIDEND: BSJS Balanced Fund, final cash percent, interim 10 per cent already paid, JS ABAMCO, second interim at the rate of 10 per cent, first interim of an identical amount already paid.
