Stocks gain 188 points seeing end to political uncertainty
By Our Staff Reporter
KARACHI, March 24: The stock market on Monday welcomed the nomination of much-delayed prime minister on the perception that the political uncertainty will end as the new set-up will be in place after the swearing-in of Yusuf Raza Gilani on Tuesday.
The market’s buoyant mood was also well reflected in the performance of the KSE 100-share index, which soared to its new career-best level at 15,182.38, but below the session’s high of 15,230.61, up 188.51 points or 1.26 per cent as compared to previous 14,993.87 points. The free float 30-share index also rose by 196.51 points at 18,509.37.
The leading cement companies, including Lucky Cement and D. G. Khan, oil shares and blue chips on the other counters, notably Arif Habib Securities were among the trendsetters.The market witnessed a flood of new buying orders almost from all the quarters soon after the opening as no one was inclined to miss the ride on the bandwagon amid analysts’ predictions of smooth sailing on the political front under the strong coalition government. A section of investors was, however, worried over the smooth transfer of power between the warring contenders, one having sweeping powers to undo the system and the other with people’s mandate until consensus is reached on the core issues, they added.
“The investors should go by the initial broader market reaction to the new prime minister known as a man of conviction and strong will,” said a leading analyst, adding, “but the mess entrusted to him will take quite sometime to be cleared and restore normalcy.”
But some others said the future direction of the market would be guided by the policy initiatives of the new government on the economic and financial front and how it takes corrective steps.
However, the low volume figure shows that the investors are closely following the changing developments on the political front and are inclined to play safe until more clear picture emerges, they said.
“Much of the initial robust rally will depend on how foreign investors view the change,” another leading analyst said. “If they are in there may be a boom conditions and if they are still reluctant there could be more than one problem.”
Plus signs dominated the list under the lead of Shell Gas, PSO, IGI Insurance, Sapphire Fibres, Habib Bank, IGI Insurance, Pakistan Resource Co, JS Global, Attock Petroleum, Tri-Pack Films, JS & Co and Siemen’s Pakistan, which posted gains ranging from Rs9 to 40.
Losses on the other hand were fractional barring Murree Brewery, Al-Ghazi Tractors, Pakistan Engineering, EFU General and Colgate Pakistan, off by Rs4 to 30.
Trading volume was well blow the respectable total of 300m shares but higher as compared to previous one at 260m shares, while gainers held a strong lead over the losers at 205 to 124, with 42 shares holding on to the last levels.
Lucky Cement topped the list of actives, up by Rs4.15 at Rs140.65 on 31m shares followed by D. G. Khan Cement, up Rs4.40 at Rs112.30 on 21m shares, OGDC, higher by Rs2.20 at Rs136.05 on 17m shares, Bank Alfalah, lower 55 paisa at Rs53.85 on 14.12m shares, Bank of Punjab, off Rs2.27 at Rs65.65 on 13m shares and Arif Habib Securities, sharply higher by Rs3.95 at Rs178.50 on 11m shares.
Other actives were led by Pakistan Petroleum, higher by Rs4.65 at Rs263.70 on 10m shares, Pakistan Oilfeilds, off Rs1.20 at Rs374 on 8m shares, WorldCall Telecom, easy by 10 paisa at Rs17.35 on 8m shares, and Arif Habib Bank, up Rs1.30 at Rs27.45 on 7m shares.
FORWARD COUNTER: Bank of Punjab came in for active selling and led the list of actives on the cleared list, off by Rs3.46 at Rs65.84 on 8m shares, its April settlement, lower by Rs2.95 at Rs66.35 on 6m shares and Lucky Cement, higher by Rs3.71 at Rs140.61 on 5m shares, Bank Alfalah, up 25 paisa at Rs54.45 on 4m shares and D. G. Khan Cement, higher by Rs4.90 at Rs112.60 also on 4m shares.
The notable feature was that trading also commenced in the April settlements along with the maturing March contracts.
DEFAULTER COS: Zeal-Pak Cement came in for active support and was marked up by 10 paisa at Rs4 on 0.650m shares followed by Norrie Textiles, unchanged at Rs1.65 on 0.586m shares and Saitex, up 10 paisa at 75 paisa on 0.128m shares.
Unity Modaraba followed them, unchanged at Rs1.10 on 0.123m shares followed by Invest Capital Bank, lower 25 paisa at Rs5.75 on 0.104m shares.
BOARD MEETINGS: Pakistan Services on March 26, Crescent Textiles on 27, Adamjee Insurance on 28, and Invest Mutual Fund, on March 31.
