KARACHI, June 12: Stocks on Thursday staged a smart rally as investors were back in the rings after taking a brief technical breather as no one among them was inclined to miss the rising market and an attractive bait of capital gains. The index was up 37.48 points at 3,248.47 with the market capitalization soared to Rs719 billion, an increase by Rs8 billion.
Bulk of the support remained confined to most of the second-liners, reflecting a major shift in investor’s perceptions as well as allaying fears that the market has already attained its peak levels.
The fact that investors are not inclined to be influenced by some external depressants, including the LFO, speaks volumes about the inherent strength of the market and the future share business outlook.
The KSE 100-share index rose by 37.48 points to 3,248.20 points signalling that it is heading for a new career-best level beyond 3,200, of course, after due technical corrections.
The opening was, however, a bit lower, what the dealers called an extension of the overnight easiness, but the mid-session saw the return of the bull-market led by PTCL and Dewan Salman, which remained in strong demand throughout the session just following the pattern of its sister concern, Dewan Motors, which has soared to Rs28 from Rs16 two weeks back, higher sales being the chief stimulating factor.
“Institutional buyers have made the overnight dip an excuse of a robust recovery,” says a leading analyst, adding “spillover of buying to some from the overvalued shares to the second-liners has ensured a viable depth to the market.”
Reports that the government has approved the plan to sell the controlling shares of some mega companies, including National Bank, Sui Northern Gas, PIAC and Oil and Gas Development Company Limited, during the next three months through the stock exchanges evoked good interest in their shares as well as the broader market.
However, the market witnessed a major change in the investor perceptions about the future share business, brokers said. “There is a perceptible shift in investor’s buying strategy from the overvalued shares to the middle order or low-priced shares, the capital gains being an attractive bait.”
Some of the fiscal incentives to the textile and synthetic, cement and auto sectors are also fuelling the run-up, but the chief stabilizing factor appears to be the presence of strong financial support backed by large surplus funds, they said.
Textile, auto, cement, synthetic shares and some of the blue chips remained centre of activity as investors build up long positions amid reports of further rise in their prices.
Nestle MilkPak, Gul Ahmed Textiles, Shell Pakistan, Clover Pakistan, Pakistan Services and Javed Omer were leading among the gainers, up Rs3 to Rs11 followed by Metropolitan Bank, Premium Textiles, Lakson Tobacco, Dawood Hercules, Shell Gas, National Refinery, Shahtaj Textiles and Artistic Denim, which posted gains ranging from Rs1.70 to Rs2.75.
With the exception of a sharp decline in the share of Siemens Pakistan on some negative reports, which fell by Rs21 followed by other MNCs, notably Colgate Pakistan, Abbott Lab, and Clariant Pakistan off Rs2 to Rs6.50.
Other prominent losers were led by 13th ICP, EFU General, Habib Insurance, International Industries, Premier Sugar, Pakistan Cables, Jahangir Siddiqui & Co and Fateh Textiles, off Rs1.85 to Rs3.50.
Traded volume further fell to 410m shares from the previous 525m shares, but gainers forced a comfortable lead over losers at 216 to 163, with 54 shares holding on to the last levels.
PTCL topped the list of most actives, higher by 65 paisa at Rs27.35 on 76m shares, Dewan Salman, up Rs1.50 at Rs17.65 on 65m shares, Sui Northern Gas, easy five paisa at Rs34.55 on 38m shares, FFC-Jordan Fertilizer, up 15 paisa at Rs13.25 on 33m shares and KESC, higher by 50 paisa at Rs6.50 on 21m shares.
D.G. Khan Cement led the other actives, up 20 paisa on 22m shares, Hub-Power, steady 10 paisa on 16m shares, National Bank, up 80 paisa also on 16m shares, Nishat Mills, off 50 paisa on 15m shares and Bosicor Pakistan, lower 70 paisa on 9m shares.
FORWARD COUNTER: PTCL also came in for active support on the forward counter and rose by 50 paisa at Rs27.35 on 14m shares followed by Sui Northern Gas, unchanged at Rs34.55 on 7m shares, Hub-Power, firm 10 paisa at Rs35.80 on 6m shares, Dewan Salman, higher by Rs1.50 at Rs17.55 on 5m shares and Nishat Mills, lower 50 paisa at Rs32.90 on 3m shares.
Ibrahim Fibre also followed the lead of Dewan Salman in response to fiscal incentives and rose by Rs1.65 at Rs23.75 on a modest volume.
DEFAULTER COMPANIES: Trading activity on this counter was relatively slow where shares of 29 companies came in for trading, most active among them being Medi Glass, up 45 paisa at Rs3.45 on 87,500 shares.
National Modaraba followed it with a gain of five paisa at Rs1.30 on 42,000 shares and Allied Motors, sharply higher by Rs1.50 at 14.20 on 29,500 shares.