|
|
|
| July 30, 2007 | Monday | Rajab 14, 1428 |
Stocks maintain recovery drive
STOCKS last week remained in a bullish frame of mind and maintained their recovery drive as investors covered positions on selected counters but the broader market again remained under pressure owing to law and order situation and political uncertainty.
But active short-covering in most of the leading base shares, notably MCB, OGDC, National Bank, and some others aided the KSE 100-share index recoup a good part of previous week’s massive fall of 850 points or seven per cent. Some of the higher dividend and bonus shares also generated a good bit of speculative buying on some other counters, notably those whose board meetings are due.
The KSE 100-share index recovered 278.71 points at 13,630.50.00 points, adding Rs80 billion to the market capital at Rs4,000 billion.
Although blue chips and leading base shares recovered in unison from the previous lower levels, and significantly added to the relative strength of the index, the broader market failed to keep pace with the blue chip counter and stayed weak.
News of dividend by Al-Ghazi Tractors, International Industries, Rafhan Maize Products, and some others over the week were on the higher side of the analysts’ predictions which evoked keen interest on their respective counters.
The absence of foreign buyers, as was reflected by sharp fall in SCRA figures, who chose to keep to sidelines fearing law and order situation, weighed heavily against the sentiment, analyst Hasnain Asghar Ali said.
But what worried them the most were reports of change in the government setup, which could lead to policy changes and political uncertainty, he added.
Click to view the larger image
The apex court verdict on the Chief Justice’s petition, reinstating him as the country’s chief adjucator, market talk of removal of CFS cap on a number of shares and revival of strong foreign demand on selected counters, were some other factors supporting the rally.
What mattered most was the factor that investors had ignored the repeated US threats of direct strike on Al-Qaeda targets in the tribal areas, and the repercussions it would likely have on the share market, said a leading floor broker adding, “it reflects that investors are inclined to follow higher corporate results rather than being weighed down by US threats”.
The KSE 100-share index recovered another 278.71 points at 13,630.50, adding Rs80 billion to the market capital at Rs4,000 billion. The free float 30-share rose by 416.87 points at 16,491.45.
“It is steadily rising to attain its recent peak level of well over 14,000 points and if all goes well with background news, it could rise above this level”, analysts said.
“It was not a single factor behind the sustained run-up that too in a tense political situation, which aided to market to perform terribly well but a combination of them, which drove bears out of the market”, analysts said.
Active support remained confined to most of the second-liners as section of investors played safe in case the market again retreats from the current levels on selling.
FORWARD COUNTER: National Bank led the list of leading shares, which finished with sharp gains on strong speculative buying followed by MCB and OGDC.
Lucky Cement, D.G. Khan Cement, Fauji Fertiliser Bin Qasim, Bank Alfalah, Telecard and some others were also actively traded on the higher side but leading oil shares, notably Pakistan Oilfields and Pakistan Petroleum remained under pressure on selling owing to either-way price movements on the world oil markets.—Muhammad Aslam
|
|
|
|
