KARACHI, July 9: Stocks on Wednesday maintained their upward drive followed by active follow-up support on selected counters aided by the perception of a fragile truce in the backdrop of prime minister’s talks offer to the opposition. The KSE 100-share index gained another 45.65 points at 3,552.43.
The market now seems to have more than it needed to stay buoyant, including massive surplus liquidity, shrinking potential investment avenues, but what it needs is end of the political polarization between the contenders of power.
“The capital market and the real estate now appear to be on the top of potential gainful investment outlets and their current trend shows investors are striking on the right door,” says a leading broker.
The notable feature of the day was a big rise of Rs100.50 in the share value of Unilever Pakistan whose 50-rupee share soared to Rs1,440.50 on 26,540 shares on active support aided by reports of higher profit after the recent global restructuring of its parent company. Wyeth Pakistan followed it, higher by Rs50 at Rs1,100 on 470m shares.
The KSE 100-share index consolidated well above the psychological barrier of 3,500 points on strong follow-up support in most of the leading base shares as perceptions of peace on the home political front did not allow investors to sit on the sidelines.
It finally ended around 3,552.43 as compared to 3,506.68 a day earlier as leading base shares maintained their upward drive under the lead of PTCL and Hub-Power. The net gain over the day was 45.65 points or 1.30 per cent.
“The market started the new fiscal account on a cheerful note as cash heavy financial institutions resumed their buying on selected counters,” analysts said. “What will be the next chart point for the index is too early to predict.”
But predictions of 4,000 level may not be that ambitious as if all goes well with the peace moves between the opposition and the government and the LFO issue is resolved, the best level may yet have to come, they said.
Although most of the leading as well as secondary issues have risen by 10 to 20 per cent during the June run-up, investors are not deterred by their inflated levels and are picking them up as no one is inclined to miss an attractive bait of capital gains. Analysts said there were still some unexplored areas, which ensured good capital appreciation and investors were progressively moving in that areas, which in turn had provided the needed depth to stock trading.
After the cement sector, where some of the leading shares had risen three times higher than their market price some two months back on the strength of exports, cut in excise duty and increase in production quota, some other inactive shares in the textile, investment, insurance and synthetic groups are now under investor squeeze.
Fertilizer giants such as Fauji Fertilizer and Engro Chemical are also in the limelight for the last couple of sessions amid rumours of price increase and higher profits.
Plus signs again dominated the list, leading gainers being Faisal Spinning, Shell Pakistan, Dawood Hercules, Century Papers, Packages, Security Papers, AKD Securities, Grays of Cambridge, Sapphire Textiles, Sapphire Fibre, Al-Ghazi Tractors, Clariant Pakistan, Pak-Suzuki Motors, Fazal Textiles and Central Insurance, up Rs4 to Rs7.45.
Losers were led by Jahangir Siddiqui Company and Bank, EFU Life, Mehmood Textiles Crescent Steel, HinoPak Motors, Gatron Industries, Glaxo-SKF and Javed Omer, which suffered fall ranging from Rs4 to Rs7.60.
Trading volume soared to 407m shares from the previous 293m shares, reflecting the new year portfolio building. Gainers outpaced losers by a big margin at 268 to 128, with 54 shares holding on to the last levels.
PTCL again topped the list of most actives, higher by 80 paisa at Rs30.30 on 102m shares followed by Hub-Power, up 45 paisa at Rs38.60 on 63m shares, National Bank, sharply higher by Rs1.30 at Rs30.60 on 20m shares, Maple Leaf Cement, up 35 paisa at Rs16.35 on 16m shares and D.G. Khan Cement, up 25 paisa at Rs30.70 on 15m shares.
Lucky Cement led the list of other actives, up 55 paisa on 14m shares, Engro Chemical, easy 10 paisa on 13m shares, PSO, firm by 10 paisa on 11m shares. ICP SEMF, up one rupee on 10m shares and Dewan Salman, lower 15 paisa also on 10m shares.
FORWARD COUNTER: Speculative issues also came in for active support and rose further under the lead of PTCL, up 80 paisa at Rs30.40 on 13m shares, followed by Hub-Power, higher 40 paisa at Rs38.80 on 11m shares, PSO, steady 10 paisa at Rs236.75 on 4m shares, Dewan Salman, easy 15 paisa at Rs19.15 on 2m shares and Engro Chemical, lower 25 paisa at Rs88.50 on 1.395m shares.
DEFAULTER COMPANIES: Brisk trading was again witnessed on this counter as a section of investors played on both sides of the market on small margins of profits. About five dozen shares came in for trading, most of them ending on the higher side.
Quice Foods led the list of actives, up 10 paisa at Rs2 on 0.241m shares, Unity Modaraba, lower 20 paisa at Rs2,10 on 0.112m shares and Mukhtar Textiles, unchanged at Rs2.45 on 70,000 shares.