The market is now eagerly awaiting the final pay-out from another corporate giant, being the last among the heavy-weights, PTCL whose board meeting is due on Sept 27 but its pre-meeting behaviour on the floor was not that encouraging for no apparent bearish reason.
After having broken three consecutive barriers, the KSE 100-share index finally settled well above the 8,000 index level as leading base shares rose in unison under the lead of OGDC, PTCL, PSO, National Bank on strong demand at the inflated levels.
It touched its four-month high of 8,287.00 as compared to 7,934.00 at the previous weekend, emitting bullish sparks under the lead of leading bank and oil shares, finally ending the week around 8,179.90,up 245.36 over the previous close. It has risen by 12 per cent or 874 points since early this month after the CFS financing mode was introduced.
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It may not touch the previous all-time peak level of 10,300 points hit early this year in the near-term but its long-term playing ground appears to be between 8,000 and 9,000 points level.
Strong institutional support led by the leading banks and dividend related buying in oil and other sector is expected to keep investors in a bullish mood in the coming weeks also, technical corrections here and there notwithstanding.
The developing situation on the corporate front, notably a general perception to share profits with the stakeholders seem to have change the entire future share business outlook and there appears to be no second thought on building up of buying euphoria.
Dividend-driven rally apart, the other major supporting factors is said to be market talk of a substantial increase in liquidity under the newly introduced Continuous Funding System(CFS) from the existing Rs25 billion to Rs50.00 billion. It was raised from the previous Rs12 billion to Rs25 billion early this month.
Stocks were, therefore back on the rails aided by active short-covering in the leading base shares including PTCL and OGDC, with National Bank remaining a star performer on the strength of higher earnings.
Although the market is still in overbought position and needed correction, bulls are not inclined to loosen their grip on the prevailing price line fearing bear onslaught.
That is perhaps why widely speculated weekend sell-off could not be extended as there were more buyers than sellers at dips, notably on the low-priced counters.
“ After a fair amount of trial and error, leading investors seem to have set a viable trading pattern for themselves”, says a leading stock analysts commenting on the market’s current mood “they sell long positions in the high profile shares by way of profit-taking and pick up the second-liners having potential of capital appreciation”.
Thus, they operate judiciously both ways ensuring their profit margins but without disturbing the status quo or the current price pattern. The move perhaps aims at keep sundry investors in a positive mood sans scare.
“ If this pattern backed by corporate earnings is followed, the market could build up at each decline a strong rally adding to the index though by patches”, some others holding the same view said.
National Bank maintained its upward drive after having risen from the low of Rs.98.00 to 138.00, reflecting investor response to its hefty profit and further boost in interim results.
MCB, Bank of Punjab followed it supported by Nishat Mills, PTCL, and OGDC, which has been under pressure for the last couple of sessions.
Among the leading cement shares, D.G. Khan Cement attracted profit-selling ahead of board meeting but Maple Leaf rose sharply on reports of 10 percent bonus shares.
Leading gainers were led by IGI, Pakistan Refinery OGDC, PTCL, Aventis, Millat Tractors, PSO, Pakistan Oilfield, Pakistan Petroleum, Attock Refinery, Dawood Hercules, Shell Pakistan, Al-Ghazi Tractors, Rafhan Maize, Rafhan Bestfoods, Packages, Shezan International and many others.
Prominent losers included EFU Life, AKD Securities, Haroon Oils, Bhanero Textiles, Wyeth Pakistan and Adamjee Insurance, while others fell fractionally.
FORWARD COUNTER: Speculative issues on the forward counter followed the lead of their counterparts in the ready and barring some exception, which fell on technical grounds, most actives finished with extended gains.
Leading gainers among them being National Bank, MCB, Bank of Punjab, Pakistan Petroleum, OGDC .PTCL, Fauji Fertiliser Bin Qasim and some others rising sharply higher on active follow-up support. PSO at the fag-end of the week suffered sharp pruning .—Muhammad Aslam