KARACHI, June 20: Stocks on Friday showed widespread gains on active short-covering at the overnight lower levels but there was no matching selling from the bears who most of the time kept to the sidelines awaiting further rise in prices possibly by the next week.
Both the KSE 100-share index and the market capitalization finished the week at their career-best levels of 3,307.09 points and Rs735.488bn respectively, reflecting the inherent strength of the broader market as well as investors confidence in its meteoric rise.
The local political scene may be heating up in the backdrop of opposition’s no-confidence move against the speaker of National Assembly, the US factor linked with the president’s visit may not allow the market to fall below the current levels.
There were no signs of the overnight correction after the trading resumed as the index steadily rose to breach through the barrier of 3,300 as bulk of the short-covering was confined to the leading base shares and finally finished at 3,307.03 points as compared to 3,288.79 a day earlier, up 18.24 points.
There was no external factors to which the snap recovery could be attributed except some good news from the US after the president meets President Bush early next week and seek a debt waiver for another $1.8bn and possibly a fresh aid package.
The weekend rally always signals a higher opening when the market resumes trading next week and that could well prove a supporting point for the index’s newly attained peak level beyond the crucial level of 3,300 points.
“And if the president returns from the US according to market perceptions the next target of the index could be 3,500 level within the current fiscal ending June 30, 2003”, brokers predict.
Fears about a big sell-off in the second-liners, however, at their current inflated levels haunted investors as it could take the entire market into the minus territory, analysts said.
Owing to massive buying in some of the cement shares partly because of a 25 per cent cut in excise duty and partly to rising export prospects to Afghanistan, investors have made heavy bank borrowing to ride the bandwagon.
“Badla rates of some of the leading cement shares have touched the high mark of 18.5 per cent, which analysts fear signal selling in them any time and its fall-out on the entire market”.
But some others say the market may not react bearishly to its technical demand at least until the president is in the US and what after that is “anybody’s guess”.
The snap rally was initiated by the blue chips, notably PSO, followed by some leading shares on the other counters including the cement, auto and energy sectors.
Plus signs were strewn all the over the list, major gainers being EFU Life Insurance, Al-Abid Silk, National Refinery, Pakistan Oilfields, Crescent Steel, Shezan International, Rafhan Maize and Cotninued from Page 9
PSO, which posted sharp gains ranging from Rs3.15 to Rs7, the highest being in PSO.
But the notable feature was that the Pak-Suzuki Company became the first car assembler whose 10-rupee share crossed the 100-rupee mark on active buying triggered by reports of higher sales. It ended with a smart gain of Rs7.35 at Rs105.35 on 0.755m shares.
Losers were led by EFU General, Umer Fabrics, Jahangir Siddiqui & Co, Bata Pakistan, Premier Sugar, Gatron Industries, BOC Pakistan and Unilever Pakistan, off by Rs1.50 to Rs8.
Trading volume fell to 241m shares from the overnight’s 528m shares but gainers maintained a strong lead over the losers at 239 to 131, with 50 shares holding on to the last levels.
PTCL was actively traded, unchanged at Rs27.85 on 28m shares, followed by Pakistan Oilfields, higher by Rs3.55 at Rs319 on 23m shares, Hub-Power easy 10 paisa at Rs36.70 on 19m shares, FFC-Jordan Fertilizer, up by 10 paisa at Rs13.60 on 15m shares and Chakwal Cement, higher by 45 paisa at Rs3.80 on 14m shares.
Other actives were D.G.Khan Cement, firm by 15 paisa on 13m shares, WorldCall, steady five paisa on 9m shares, Unity Modaraba, up by 15 paisa also on 9m shares, Telecard, lower 15 paisa on 7m shares and Japan Power, higher 30 also on 7m shares.
FORWARD COUNTER: PSO came in for massive support apparently followed by rumours of fixation of its sell-off date and rose by Rs7.80 at Rs228 on 26m shares followed by PTCL, up by 15 paisa at Rs28.10 on 5m shares, Hub-Power easy five paisa at Rs36.80 on 4m shares, FFC-Jordan Fertilizer, steady by 10 paisa at Rs13.70 on 2m shares and Sui Northern Gas, up by 10 paisa at Rs34.35 also on 2m shares.
DEFAULTER COMPANIES: Heavy trading was witnessed on this counter as investors covered positions at the lower levels aided by predictions of handsome capital gains.
Medi Glass, topped the list of actives, up by Rs1.45 at Rs2.40 on 0.594m shares followed by Amazai Textiles, off Re1 at Rs2.15 on 0.481m shares Schon Modaraba, up by 25 paisa at Rs1.15 on 0.420m shares and S.S.Oils, sharply higher by Rs1.30 at Rs7.35 on 0.278m shares.
ICP SEMF: Right shares at the rate of 50 per cent at a premium of Rs15 per share.
BOARD MEETINGS: Automotive Battery and Exide Pakistan on June 23, Atlas Honda and Kashmir Edible Oils, on June 25.