KARACHI, July 11: Stocks on Friday remained in a bullish frame of mind and made fresh covering purchases on the blue chip counters after digesting the negative impact of the city bomb blast, killing two persons. The KSE 100-share index posted fresh gain of 49.02 point and the market capitalization soared to a new peak level of Rs811bn.
Trading volume soared to second-best single-session record of 641m shares including that done on the defaulter counter, out of which the PTCL and Hub-Power accounted for 2.48m shares. The all-time highest-ever figure was attained at 689.315m shares on Dec 31, 2002 and the third best figure being 631.746m shares hit on Dec 28, 2002.
After having successfully absorbing the negative fall-out of the Quetta carnage, the mob attack on Pakistan embassy in Kabul and the border tension on the Afghan border, the market also ignored the scare that followed the local bomb blast.
Massive fresh buying in the pivotals, notably PTCL, Hub-Power, PSO and some others continued to inspire sympathetic support from the other quarters and no one was worried by the weekend considerations.
Investors appear to be in no bearish mood despite higher badla volume and rates and continued to build up long positions apparently led by their own perceptions of capital gains. As far as the analyst predictions are concerned, they are far behind the market rise and seem to have lost relevance to ground realities.
The KSE 100-share index confidently breached through the barrier of 3,600 and settled well above it at 3,645.89 as compared to 3,596.87 a day earlier, up 49.02 points. All leading base shares maintained their upward drive under the lead of PTCL and Hub-Power, which together hold a weightage of 43 per cent in it.
Floor brokers said strong weekend rally always paves the way for a big price flare-up when the trading resumes next week and indications are that the entry of individual investors in the share business may further add to the prevailing boom conditions.
But some others said in the absence of institutional traders, individual support could be deceptive as they may leave anytime they choose, leaving behind a number of casualties.
Stray selling by weakholders and bargain-hunters was witnessed on a number of counters at the fag-end of the second session owing to weekend considerations but the overall trend remained on the higher side.
Analyst said a section of the leading investors was, however, worried over the persistent rise of the market without even a technical correction long overdue and fear snap reaction any time.
The fact that Friday’s bomb blast did not halt the market’s upward drive, which in normal trading sessions triggers a lot of panic selling signals an alarm signals for those who have a little holding capacity and could well prove major casualty if the market takes a U-turn, they said.
The question now being debated is that “why the leading bulls are not inclined to loosen their grip on the price and are halting the market to meet its technical demands,” brokers said.
And why leading among them are taking long positions in PTCL and Hub-Power which along with some others including PSO hold a weightage of over 50 per cent in the index just to show that the index level of 4,000 is now not a distant possibility, although it may be backed by the objective conditions.
“The market appears to be treading on a very tricky path and if the retreat started on back of any bad news there may not be any rescue operation,” analysts said.
Prominent gainers were led by Arif Habib Securities, Javed Omer and Parke-Davis, which posted gains ranging from Rs10 to Rs24. They were followed by Pakistan Oilfields, Dewan Textiles, International Industries, Quetta Textiles, Exide Pakistan and New Jubilee Insurance, up Rs3 to Rs4.95.
Losers were led by Jahangir Siddiqui Bank, and its sister company, Dawood Cotton, Burewala Cotton, Crescent Steel, Al-Ghazi Tractors, IGI Insurance, EFU Life, Central Insurance, Bhanero Textiles and Unilever Pakistan, off Rs2.15 to Rs10.
Trading volume was maintained on the higher side at 640.912m shares as against the previous 524m shares. Gainers maintained a strong lead over the losers at 273 to 136, with 51 shares holding on to the last levels.
Hub-Power topped the list of most actives, higher by Rs1.20 at Rs40.45 on 144m shares followed by PTCL, unchanged at Rs31.25 on 104m shares, Dewan Salman, firm by 40 paisa at Rs20.35 on 54m shares, PIAC, up Rs1.20 at Rs14.40 on 45m shares, and DG Khan Cement, higher by Rs2.25 at Rs32.75 on 36m shares.
Other actives were led by Nishat Mills, up 95 paisa on 31m shares, Maple Leaf Cement, up Rs1.10 on 27m shares, FFC-Jordan Fertilizer, firm by 30 paisa on 22m shares, Pakistan Oilfields higher by Rs2.90 on 16m shares and Lucky Cement, steady by 80 paisa on 14m shares.
FORWARD COUNTER: Forward counter also depicted bullish trend where Hub-Power rose by Rs1.25 at Rs40.60 on 19m shares followed by PTCl, up 55 paisa at Rs31.90 on 17m shares and Dewan Salman, higher by Rs1.30 at Rs20.45 on 5m shares.
PSO rose by Rs185 at Rs240.20 on 5m shares followed by FFC-Jordan Fertilizer, higher 30 paisa at Rs14.40 on 4m shares. Others were modestly traded.
DEFAULTER COMPANIES: Shares of about five dozen companies came in for active bouts of buying and selling under the lead of Unity Modaraba, up 25 paisa at Rs2.30 on 0.255m shares followed by SS Oil, higher 40 paisa at Rs8.20 on 0.104m shares and Amazai Textiles, up 35 paisa at Rs2.45 on 0.111m shares and Quice Foods, unchanged at Rs2.30 on 0.110m shares.