KARACHI, May 22: Stocks on Thursday posted fresh widespread gains as investors continued to build-up long positions on all the counters ignoring perceptions of a negative political fallout of the current deadlock on the LFO issue.
The KSE 100-share index maintained its upward march towards its new target of 3,100 points in response to a terribly broad-based rally engulfing most of the second-liners, including shares of some defaulting companies. It ended with an extend gain of 18.27 points at 3,059.50 points, its new career-best level as compared to previous 3,041.23 points.
Analysts say investors seem to be in no mood to entertain bearish ideas about political risks owing to prevailing standoff on the LFO and continued to build up long positions, notably on some of the second-liners having the potential of capital gains.
“The rigid positions taken by the contenders over the LFO issue could mean anything to the market’s outstanding performance as a “slight blink on the part of anyone of them could cause massive price erosions,” they fear.
But some others claim the PSO-driven rally could be sustained until the date of its final bidding is announced as it will continue to inspire fresh sympathetic buying in the other energy shares and selected blue chips on the others.
“The future course of political events will be determined by the outcome of final meeting on the LFO possibly on May 25,” one broker said. “If both sides agree to do away with the seven contentious clauses it will be okay but if both sides meet to disagree then anything could happen.”
It was perhaps this perception, which worries most of the leading genuine investors who prefer to play safe and mostly on short-term basis on selected counters.
Bulk of the support again originated from the institutional traders who inject huge amounts of idle funds to realize capital gains, mostly quick bucks on daily basis.
Biggest rise was noted in Rafhan Maize Products and Wyeth Pakistan, which spurted by Rs15.95 and Rs73.50 for their 10-rupee shares. Shortage of floating stock was said to be the chief factor behind the price flare-up.
Other prominent gainers were led by Javed Omer, PSO, Shafiq Textiles, Al-Abid Silk, Shahtaj Sugar, Attock Refinery, Pakistan Oilfields, Shell Pakistan Siemens Pakistan, Al-Ghazi Tractors, Colgate Pakistan and several other, up Rs3.50 to Rs7.50.
Losers were led by Gatron Industries, Atlas Batter, Singer Pakistan, Dawood Hercules, Abbott Lab, Reckitt and Benckiser and Fazal Textiles, which suffered fall ranging from Rs1.40 to Rs4.50.
Trading volume rose further to 271m shares from the previous 254m shares as the advancing shares maintained a strong lead over the losing ones at 275 to 111, with 60 shares holding on to the last levels.
The most active list was topped by Hub-Power, up 15 paisa at Rs35.40 on 53m shares, PTCL, easy 15 paisa at Rs26 on 31m shares, D.G. Khan Cement, firm by 45 paisa at Rs17.70 on 29m shares, PSO, higher by Rs3.90 at Rs216 on 25m shares, Sui Northern Gas, unchanged at Rs32.15 on 13m shares and Pakistan Oilfields, higher by 4.40 at Rs194 on 11m shares.
Other actives were led by Lucky Cement, firm by 15 paisa on 8m shares, PIAC, unchanged on 7m shares, FFC-Jordan Fertiliser, higher by 30 paisa on 6m shares and ICP SEMF, higher by Rs2.40 on also on 6m shares.
CLEARED LIST: PSO also came in for strong support on the forward counter and rose by Rs4.20 on 8m shares followed by Hub-Power, firm 10 paisa at Rs35.40 on 9m shares.
PTCL on the other hand came in for modest selling and fell by five paisa at Rs26.10 on 8m shares, Sui Northern Gas, up five paisa at Rs32.20 on 4m shares and FFC-Jordan Fertiliser, higher 25 paisa on 2m shares.
DEFAULTER COMPANIES: Trading activity on this counter was maintained on the higher side where shares of three dozen companies came in for active bouts of buying and selling under the lead of Qayyum Spinning and Medi Glass, up 60 and 10 paisa at Rs2.25 and Rs2.75 on 0.148m and 0.141m shares, respectively.
Schon Modaraba also attracted fresh buying and rose by 25 paisa at Rs1.10 on 85,500 shares followed by Apex Fabrics, firm by five paisa at Rs1.35 on 41,000 shares. Some others also turned out large business.
BOARD MEETINGS: Gul Ahmed Textiles on May 24; Data Textiles, Crescot Mills, Island Textiles, Salfi Textiles, Tata Textiles, Mehmood Textiles, Prosperity Weaving, Fazal Cloth, Al-Mal Securities, Ellcot Spinning, Nagina Cotton, Shakarganj Sugar on May 26; Shadab Textiles, Sargodha Spinning, Husein Sugar, Mitchlle’s Fruits, Nishat Mills, Idrees Textiles, Sindh Abadghar’s Sugar, Ishtiaq Textiles, Mirpurkhas Sugar, Kohinoor Textiles, Kohinoor Weaving on May 27; Umer Fabrics, Allawasaya Textiles, Thal Industries, Ali Asghar Textiles, Nishat Chunian, Shahmurad Sugar, Al-Noor Sugar, Crescent Textiles, Fatima Enterprises, Shafiq Textiles, Taj Textiles, Paramount Spinning, Gulshan Spinning on May 28, Gulistan Textiles, Gulistan Spinning, Samin Textiles and Crescent Sugar on May 29.