“The index level of 8,000 appears to be the next bull target if all goes well with the federal budget and the rumoured incentives,” one broker said. “The fact that the market has ignored the incidents of violence in the city signals that bulls now mean business.”
Stocks, therefore, rose further higher across the board on fresh heavy buying in the leading oil shares and PTCL, and partly because of a good price fetched by National Refinery in Tuesday’s final bidding, leading to its sell-off to Attock oil group.
The KSE 100-share index maintained its upward drive and after breaching through the barrier of 7,000, stood firm well above it at 7,019.60, up 161.93 points or 2.36 per cent. The day’s highest was touched at 7,057.20. Market capital also added another Rs43.00 billion to the total at Rs1,963.00 billion.
The big rise in the index was again attributed to heavy financial buying in PTCL followed by reports that its controlling shares will be disinvested to the highest bidder on June 10, despite continued strike by its employees against its privatization.
Hoping a higher price in line with the National Refinery, investors were building up long positions in it ahead of the bidding date, analysts said. Along with OGDC, PSO, Pakistan Oilfields, PPL, it is the major contributor to the combined weightage of 50 per cent in the index.
“Instances of pre-budget speculative buying on selected counters are not wanting,” they said. “But what is important is that no one is inclined to miss the bandwagon driven by the privatization mania.”
National Investment Trust (NIT), which holds 20 per cent shareholding in it and PICIC Growth Fund would be the chief beneficiary of the higher price because of their holding in National Refinery, while National Bank, Faysal Bank, Bank of Punjab and some others will follow them.
Out of the seven short-listed bidders both locals and foreign Attock oil group, which has already a big stake in the local oil business, offered the highest price of Rs483 per share of Rs10, more than double the other bidders offered. On Tuesday, its share value was quoted around Rs358.30 prior to the final bid.
Plus signs, therefore, again dominated the list under the lead of Pakistan Petroleum and Aventis, up Rs8.55 to Rs9 followed by Packages, Indus Motors, Indus Dyeing, United Sugar, Attock Petroleum, Attock Refinery after purchase of National Refinery by this group, Abbott Lab, PNSC, AKD Securities, PSO, and Arif Habib Securities, which posted gains ranging from Rs4 to Rs8.50.
Losers were led by Javed Omer and Valika Art Fabrics, off Rs10.75 and Rs25 respectively. Other prominent losers included Crescent Steel, Sapphire Fibre, Allawasaya Textiles, Clover Pakistan, National Refinery, and Tata Textile, off Rs2.65 to 5.25.
Trading volume fell to 357m shares from the previous 401m shares but advancing shares maintained a strong lead over the losing ones at 206 to 68, with 33 shares holding on to the last levels.
PTCL again topped the list of most actives, up 60 paisa at Rs67.50 on 150m shares followed by OGDC, higher by Rs3.95 at Rs96.60 on 100m shares, National Bank, up Rs1.95 at Rs94.15 on 25m shares, Pakistan Oilfields, higher by Rs5.20 at Rs263.70 on 13m shares, DG Khan Cement, firm 65 paisa at Rs52.15 on 9m shares and Pakistan Petroleum, up Rs8.55 at Rs179.55 also on 9m shares.
Other actives included Fauji Fertilizer Bin Qasim, steady 55 paisa on 6m shares, Sui Northern Gas, firm by 60 paisa also on 6m shares, Kot Addu Power, higher by 70 paisa on 3m shares and Fauji Cement, up 75 paisa also on 3m shares.
FORWARD COUNTER: PSO led the list of actives on this counter, relegating the PTCL to a secondary position on strong buying, up Rs6.15 at Rs365.50 on 12m shares followed by PTCL, firm 55 paisa at Rs68 on 10m shares, and OGDC, higher Rs3.15 at Rs95.15 on 6m shares.
Other actives were led by Pakistan Petroleum, higher by Rs8.10 at Rs180.70 on 6m shares and Pakistan Oilfields, up Rs1.70 at Rs261.95 on 2m shares. All others were traded on the higher side amid slow ready business.
DEFAULTER COS: With exception of Mukhtar Textiles, Dandot Cement, and Suzuki Motorcycles, which rose by one rupee each, others showed fractional changes amid slow ready off-take.