KARACHI, Nov 7: The KSE 100-share index on Monday broke through two consecutive barriers, up 227 points or 2.7 per cent on fresh strong speculative buying amid hopes that the PTCL deal may be honoured by Etisalat after the post-Eid second round of talks.
But during the trading hours, there was no official word on the outcome of second round of talks between the visiting Pakistani team and the management of Etisalat on the issue or whether or not the deal would be completed.
But bargain-hunters and speculative forces were not inclined to sit on the sidelines and opted for anticipatory buying on selected counters, aiding equities to resume trading on a bullish note as the post-Eid holiday session saw fresh widespread gains aided apparently by positive developments on the PTCL front.
The market virtually witnessed a massive bull-run from the opening, as everyone was out to grab the floating stock of leading base shares under the lead of bank, oil and cement shares, most of them finished above their upper locks.
The KSE 100-share index recovered another 227.40 points or 2.70 per cent at 8,654.02, as compared to 8,435.62 at the last weekend as all leading base shares, including PTCL, OGDC, National Bank and Pakistan Petroleum, ended with smart rallies amid active trading.
The market capital also soared by Rs60.850bn to Rs2,467.599bn as heavily capitalized shares showed sharp gains under the lead of OGDC, PTCL, Pakistan Petroleum and PSO.
Higher earning reports by Sui Northern Gas and Fauji Fertilizer and market talk of handsome payouts also generated a good bit of covering purchases on their respective counters.
PTCL, OGDC, Pakistan Petroleum and National Bank, having a weightage of about 50 per cent, pushed the index higher as all of them rose with sharp gains.
“There was a loud whispering in the market that the visiting Pakistani delegation during its recent visit has won the approval of Etisalat under a negotiated settlement formula to complete the PTCL deal,” brokers said.
Although there was no official word on the PTCL deal after post-Dubai talks, well-informed sources presume something positive has emerged from the talks on the deal. And it is time to resume covering purchases at lower levels.
But some leading analysts advised investors to play safe until official word on the issue is out, as the current speculation could push the market down as it did rise if there is some “ifs and buts on the deal,” they said.
“One thing is clear that the Privatization Commission could not afford the backing out as it will work against its massive future privatization programme,” the brokers said.
Attock Petroleum and Wyeth Pakistan led the list of top gainers, up Rs12.90 and Rs25, respectively, followed by Adamjee Insurance, Mustehkam Cement, Attock Refinery, Artistic Denim, Colgate Pakistan, Berger Paints and Shezan International, which posted gains ranging from Rs6 to Rs11.05. Many others also posted smart gains between Rs4 and Rs5.95.
Losers included Pak-Suzuki Motors and Noon Pakistan, off Rs7.60 and Rs9.40, respectively. Other prominent losers were led by Javed Omer, Murree Brewery, Gatron Industries, Sapphire Fibre, Shahtaj Sugar, Security Papers, Siemens Pakistan and Noon Pakistan, off Rs3 to Rs9.40.
Trading volume rose to 430m shares from the previous 253m shares as gainers held a strong lead over losers at 204 to 98, with 30 shares holding on to the last levels.
DG Khan Cement, topped the list of most actives on higher earnings, up Rs5.30 at Rs99 on 53m shares, followed by National Bank, higher by Rs5.75 at Rs166.50 on 45m shares, PTCL, up Rs1.10 at Rs59.25 on 42m shares, OGDC, higher by Rs4.20 at Rs111.60 on 37m shares, MCB, off Rs1.10 at Rs150.80 on 27m shares, Faysal Bank, firm by Rs3.45 at Rs72.65 on 24m shares and Pakistan Petroleum, higher by Rs3.35 at Rs205.25 on 13m shares.
Other actives were led by Bank of Punjab, up Rs2.55 on 21m shares, Lucky Cement, higher Rs3.25 on 19m shares, and Maple Leaf Cement, higher by Rs1.75 on 11m shares.
FORWARD COUNTER: National Bank also led the list of actives on this counter, higher by Rs5.45 at Rs168.65 on 26m shares, followed by DG Khan Cement, up Rs4.75 at Rs100.65 on 14m shares, and PTCL, up Rs2.35 at Rs61.10 on 12m shares.
Other actives were led by Bank of Punjab, firm by Rs2.40 at Rs98.15 on 9m shares, MCB, off Rs1.30 at Rs152 on 9m shares and Fauji Fertilizer, Pakistan Oilfields and PSO, which also rose amid slow offtake.
DEFAULTER COS: Trading on this counter was light, but some of the leading shares came in for active speculative support and rose by one rupee to Rs3 for Suzuki Motorcycles, Kausar Paints, Marafco Industries and Ghandhara Industries, respectively.
DIVIDEND: PICIC Growth Fund, cash interim 15 per cent, bonus shares 20 per cent; PICIC Investment Fund, interim cash 10 per cent; Ghazi Fabrics, cash five per cent; Crescent Commercial Bank, right shares at the rate 25 per cent; Saudi Pak Commercial Bank, right shares at 50 per cent; and Javedan Cement, nil.