The breach of the psychological barrier at the weekend session is significant in more than one ways as it reflects a major breakthrough on the PTCL impasse amid reports that talks were held at the highest level on the unresolved issues and a breakthrough may be around, brokers said.
“The index level of 9,000 now appears to be well within the reach,” brokers predict. “But the question being asked is what next. Will it rise to its previous peak level of 10,300 or falter half way.”
The KSE 100-share index recovered 69.49 points at 8,933.51, breaching through the barrier of 8,900 at 8,933.51, as compared to 8,864.02 a day earlier. Heavy buying in PTCL in the afternoon session reflects some positive developments on the deal. The PTCL share value rose by 60 paisa at Rs64.35 on 52m shares.
The underlying sentiment, however, at no stage did show signs of weakening despite prevailing uncertainty on the PTCL deal and second round of talks by the visiting Etisalat delegation on some of the unresolved issues.
“Earlier, the market was rife with conflicting rumours about the outcome of the talks as the reported position taken by Etisalat on the higher bid price and some other issues and Pakistan’s dilemma to cut it at the desired level could work on both sides of the deal,” analysts said.
However, some are optimistic and believe that the deal will go through given some external factors as both the governments are involved in it and want to resolve it on logical grounds, some others said.
Floor brokers said the market would continue to behave in an erratic fashion until the uncertainty over the PTCL deal ends, as it will have negative fallout on the government’s future privatization programme and its inability to hold the ground.
“Business deals are done on purely financial norms and deviation by one of the partners sans countries involved is liable to be cancelled under the terms of agreement,” one broker said.
Plus signs again dominated the list, major gainers among them being Ferozsons Lab, Packages, Artistic Denim, Colgate Pakistan and Nestle Pakistan, which posted gains ranging from Rs7 to Rs30. Other prominent gainers included Jahangir Siddiqui Capital Market Fund, IGI, Adamjee Insurance, Thal, Honda Atlas, Mustehkam Cement, Dawood Hercules and Shell Pakistan, up Rs5 to Rs9.50.
Losses on the other hand were mostly fractional, barring Sapphire Textiles, Bestway Cement, Pakistan Refinery, Atlas Honda, Millat Tractors and Century Papers, off Rs2 to Rs3, followed by Treet Corporation and Wyeth Pakistan, which suffered fall ranging from Rs13 to Rs25.
Trading volume rose to 410m shares from the previous 323m shares as gainers held a strong lead over losers at 221 to 112, with 24 shares holding on to the last levels.
PTCL, apart the most active list, was topped by Fauji Fertilizer Bin Qasim, up Rs1.10 at Rs37.40 on 45m shares, followed by DG Khan Cement, higher by Rs1.15 at Rs104.50 on 41m shares, Fauji Cement, up Rs1.25 at Rs26.55 on 39m shares, National Bank, firm by Rs1.40 at Rs167.80 on 21m shares, Bank Alfalah, higher by Rs1.85 at Rs66.40 on 20m shares and MCB, steady by 15 paisa at Rs147.80 on 9m shares.
Other actives were led by Bank of Punjab, up higher by 95 paisa on 15m shares, Maple Leaf Cement, up one rupee on 12m shares, and Telecard, off one rupee also on 12m shares.
FORWARD COUNTER: DG Khan Cement led the list of actives, higher by Rs1.70 at Rs105.30 on 13m shares followed by Fauji Fertilizer Bin Qasim, up Rs1.15 at Rs37.45 on 12m shares and PTCL, up 50 paisa at Rs64.45 on 11m shares.
Other actives were led by National Bank, higher by Rs1.20 at Rs168.20 on 8m shares, Maple Leaf Cement, up 85 paisa at Rs38.75 on 5m shares, and PSO, higher by Rs4.20 at Rs414.85 on a modest turnover.
DEFAULTER COS: Dandot Cement came in for renewed support and was marked up by 40 paisa at Rs12.35 on 0.405m shares, while others were modestly traded. Among leading gainers, Metropolitan Steel and Ghandhara Industries were leading, up one rupee and Rs2 at Rs15.30 and Rs63, respectively, on light volume.