KARACHI, Oct 15: Stocks on Monday opened on a bullish note and ended with widespread gains as a judicious blend of strong foreign and local support lifted the KSE 100-share beyond the psychological barrier of 1,200 points at 1,238.03, up 3.72 per cent or 44.38 points.
“Positive news, notably the withdrawal of corruption and criminal cases against Hubco, the visit of US Secretary of State and feelers of foreign debt writeoffs followed in quick succession never allowing investors a breathing space,” stock analysts at the W.E.Financial Services said, and “buying euphoria that followed is reminiscent of a bull market.”
No one among the investors was in a mood to be outwitted at this primary stage of market-run irrespective of tense city situation, the closure of other markets and fears of law and order situation, as the chief aim was to “ride the bandwagon and not to miss the rising market,” they add.
Most of the MNCs as well as the local blue chips in the forefront of gainers on the perception that foreign fund buying may have some sound reasons behind its revival.
It was a remarkable recovery judged in the backdrop of the prevailing tense local civil unrest, general strikes against the US bombing on Afghanistan and investor fears about the building up of political scenario.
A 3.72 per cent or 44.38 point increase in the index, that, too, in a tense city atmosphere, speaks eloquently of the investor mood and their future outlook about the share business, a member of the KSE said.
Stock analysts at the Finex Securities said there were more than one positive news that did not allow investors to have a second thought on the prevailing civil unrest, the most stimulating among them appears to be the withdrawal of civil and criminal cases against the Hubco management under an agreement signed last December.
Being one of the market leaders and capable of taking the entire market along with it, as hectic covering purchases in its share generated across the board buying. It recovered by Rs1.90 on a heavy volume.
“The visit of the US Secretary of State and a loud whispering of a big economic aid package including feelers of foreign debt writeoffs continue to inspire strong foreign buying on selected counters,” they add.
It was very unusual in typical local conditions that the market performance is not affected by the extensive protests against the US attacks on Afghanistan and reports of killing of some protesters, stock analysts at the AHRA, commenting on the prevailing law and order situation and market’s sustained, recovery said.
On the corporate front, the working results of PSO due to be announced in the board meeting of Oct 17, continued to generate strong buying in its share on expectations of higher dividend, they added.
Most of the leading shares, therefore, virtually raced towards their pre-reaction levels, notably gainers among them being Telecard, Jahangir Siddiqi & Co and Adamjee Insurance, which rose by Rs2 to 7.95.
Plus signs dominated the list, major gainers being Lever Brothers, ICI Pakistan, Glaxo-Wellcome, BOC Pakistan, Engro Chemical, Shell Pakistan and several others, rising by Rs1.60 to 4.40.
Among the locals, Javed Omer, MCB, Essa Cement, Gatron Industries, EFU General Insurance and Ashfaq Textiles were prominent.
Losses on the other hand were fractional barring Attock Refinery and Central Insurance, which fell by one rupee to Rs2.
Trading volume rose to 126m shares as advancing shares maintained a strong lead over the losing ones at 121 to 22, with 22 holding on to the last levels out of 168 actives.
Hub-Power topped the list of most actives, sharply higher by Rs1.90 at Rs16.85 on 51 shares, quoted at a premium against its immediate rival, the massively capitalized PTCL, followed by PTCL, up 60 paisa at Rs15.70, on 36m shares, Engro Chemical, higher by Rs1.60 at Rs48.60 on 8m shares, PSO, up Rs2.20 at Rs107.10 on 4m shares, Sui Northern, firm by 35 paisa at Rs8.65 on 3m shares and MCB, higher by Rs1.40 at Rs23.30 also on 3m shares.
Other actives were led by Adamjee Insurance, sharply higher by Rs7.25 on 2.951m shares, Fauji Fertilizer, up by Rs1.05 on 2.790m shares, Dewan Salman, firm by 90 paisa on 2.192m shares and FFC-Jordan Fertilizer, firm by five paisa on 2.146m shares.
FUTURE CONTRACTS: Forward counter also followed the lead of the ready section where Engro Chemical and PSO passed through bullish hella as the increase in their value was above the ceiling rate of Rs1.50 in a single session. While the former ended at Rs49 up Rs1.80, the latter was quoted higher by Rs175 at Rs107.25, but there was no matching selling.
Among the volume leaders, PTCL was leading, up 65 paisa at Rs15.75 on 2.130m shares followed by Hub-Power, higher Rs1.05 at Rs16.15 on 0.533m shares.
DEFAULTER COMPANIES: Trading activity on this counter was insipid as shares of only two companies — Kohinoor Gujar Khan Mills and Colony Textiles — came for modest buying. While the latter accounted for 5,000 shares at Rs9 up 65 paisa, the former was traded at the last level of Rs3.50 on 1,500 shares.
DIVIDEND: Al-Noor Modaraba, final cash at the rate of 10 per cent for the year ended June 30, 2001, an interim of the same amount already paid. National Foods: cash final at 30 per cent for the same period.