“The market has again crept into the vicious circle but no one could precisely predict about the logical end, collapse or a continued bull-run,” analysts said.
The KSE 100-share index breached the barrier of 8,500 and stood well above it at 8,581.68, up 154.91 points or about 1.84 per cent, as leading base shares, which hold about 50 per cent weightage in it remained under squeeze. OGDC, PTCL and Pakistan Petroleum hold about 40 per cent weightage in it.
The index has risen by over 300 points or 3.5 per cent during the last three sessions, with any positive change in the background news excepting market talk of increase in financing limit from the current Rs25 billion to Rs40 billion.
“The price flare-up could be deceptive as it revolves around half a dozen highly liquid shares,” says a leading broker. “I fear a trap to net in small investors on the pattern of March run-up and the consequent plunge.”
The market appears to have been passed into the hands of big one and small investors need to be a bit cautious before riding bandwagon, they added.
“The straight fight between the bulls and bears generally leaves behind a long list of casualties and the current rise in an overbought market points to this developing phenomenon,” says a leading analyst.
The general perception is that the bulls that are now on the rampage are not inclined to look back at least for the near-term and may take a breath after having hit their near-term goal of 9,000 points index level, brokers said.
Lakson Tobacco and Wyeth Pakistan, which rose by Rs10 and Rs25, respectively, were leading among the major gainers, followed by Pakistan Refinery, Attock Refinery, Pakistan Oilfields, Dawood Hercules, National Foods, NestlePak, Artistic Denim and Pakistan Petroleum, up by Rs5.25 to Rs9.90.
Losers were led by Javed Omer and Unilever Pakistan, off Rs4.40 to Rs9.90. Other notable losers included Ferozsons Lab, Glaxo-SKF, Shezan International, and Ghani Glass, off Rs3 to Rs4.
Trading volume rose further to 522m shares from the previous 501m shares a day earlier, as gainers held a modest edge over losers at 170 to 164, with 48 shares holding on to the last levels.
The most active list was again topped by OGDC, up Rs2.10 at Rs122.30 on 90m shares, followed by PTCL higher by Rs2.90 at Rs64.10 on 74m shares, DG Khan Cement, up Rs2.25 at Rs80.45 on 68m shares, National Bank, up Rs1.55 at Rs158.50 on 45m shares, Pakistan Petroleum, higher by Rs9.90 at Rs208.60 on 39m shares, PSO, up Rs8.60 at Rs415 on 20m shares and MCB, firm by Rs95 paisa at Rs129.20 on 18m shares.
Other actives were led by Fauji Cement, up 90 paisa on 32m shares, Fauji Fertilizer Bin Qasim, steady 30 paisa on 15m shares and Faysal Bank, higher by Rs2.45 on 9m shares.
FORWARD COUNTER: Pakistan Petroleum was actively traded on the cleared list and was quoted higher by Rs9.95 at Rs209.35 on 24m shares, followed by OGDC, up Rs1.70 at Rs122.20 on 22m shares, and PTCL, higher by Rs2.85 at Rs65 on 18m shares.
Other actives were led by National Bank, up one rupee at Rs159.25 on 15m shares, and DG Khan Cement, higher by Rs1.60 at Rs80.20 also on 15m shares. Others were also quoted higher amid slow offtake.
DEFAULTER COS: Dandot Cement and Unity Modaraba were actively traded, unchanged and up 55 paisa, respectively, at Rs0.95 and Rs9.50 on 0.155m and 0.135m shares.
Morafco Industries rose further higher by Rs1.20 at Rs25.50, while Dewan Auto fell by one rupee at Rs13.30.
DIVIDEND: Bhanero Textiles, cash 50 per cent; Blessed Textiles, 7.5 per cent; Faisal Spinning, 7.5 per cent; and Dandot Cement, five per cent.