KARACHI, Feb 6: Stocks on Monday resumed trading on a bullish note as investors were not inclined to take even an overdue technical breather, allowing the index to set a new record beyond the barrier of 10,800 points.
It appears to be a judicious blend of both dividend-related and foreign buying on selected counters in an highly overbought market, but analysts said external factors did not allow bears to restore sanity to the bull-run.
The KSE 100-share index breached through the barrier of 10,800 on fresh heavy buying in the leading base shares under the lead of cement and petroleum scrips.
It finished the session with a fresh sharp rise of 75.86 points at 10,802.32 as compared to the weekend’s 10,726.46 points, although well below the peak of 10,879.46 on late selling. During the session, it fluctuated either-way by 153 points, reflecting the intensity of alternate bouts of buying and selling.
It is interesting to note that bulls were not deterred by the official statement from the SECP clarifying that there is no move to revise upward the CFS ceiling from the existing Rs25 billion, denying market rumours.
However, it says the issue could be taken after May keeping in view the market demand for more funds in the backdrop of price stability sans speculative activity.
“I think bulls are inclined to take a breather after having pushed the index above their near-term target of 11,000 and are expected to look beyond it during the next couple of weeks,” analysts said.
“There is a loud whispering about the presence of strong foreign buying on selected counters, notably oil and some leading banks,” they said, adding: “The current price flare-up reflects signs of its presence are there.”
Fresh heavy buying in OGDC and Pakistan Petroleum may be in part of higher interims, but some local brokers did not rule out the possibility of their presence as they have the capacity and funds to corner high-profile issues.
Some of the leading cement shares, including DG Khan Cement, and so are bank scrips, such as MCB and Bank of Punjab, may have already touched their saturation points and may not have the potential to rise further after passing through a needed correction, most of the brokers believe.
But on the other hand, oil shares, notably OGDC, and PTCL and Pakistan Petroleum have the potential to rise further on the strength of fresh oil and gas finds and accelerated exploration operations, they added.
The board meeting of PSO is due on Tuesday (today) and analysts predict some positive announcement. Kot Addu Power, Packages and Union Bank board meetings are also due during the week.
Plus signs again dominated the list under the lead of Clariant Pakistan and Siemens Pakistan, up Rs15.05 and Rs50.10, followed by Pakistan Oilfields, Central Insurance, Atlas Honda, Pakistan Services, Pakistan Cables and Arif Habib Securities.
Prominent losers were led by Treet Corporation and Unilever Pakistan, off Rs21.30 and Rs35. Others included Pakistan Refinery, Ferozsons Lab, Gillette Pakistan, Fazal Textiles and Shezan International, off Rs7.90 to Rs11.65.
Trading volume was maintained on the higher side at 618.871m shares as compared to 638.084m shares as gainers outpaced losers by 219 to 165, with 46 shares remaining unchanged at the last levels.
OGDC topped the list of most actives, higher by Rs2.10 at Rs133 on 61m shares followed by Pak PTA, firm by 90 paisa at Rs9.20 on 48m shares, DG Khan Cement, steady by 25 paisa at Rs134.70 on 46m shares, Mample Leaf Cement, up Rs1.85 at Rs48.05 on 34m shares, KESC, firm by 75 paisa at Rs14.00 on 28m shares, Lucky Cement, up Rs3.60 at Rs107.75 on 27m shares, Pakistan Petroleum, higher by Rs3.25 at Rs226.90 on 27m shares and MCB, up 55 paisa at Rs225.50 on 25m shares.
Other actives were led by Dewan Salman, higher by 80 paisa on 19m shares, and Pakistan Oilfields, up Rs8.50 also on 19m shares.
FORWARD COUNTER: OGDC also led the list of actives on this counter on active follow-up support and was marked further higher by 70 paisa at Rs133.50 on 16m shares, followed by Lucky Cement, up Rs3.20 at Rs108.50 on 12m shares, and Maple Leaf Cement, firm by Rs1.65 at Rs48.50 also on 12m shares.
Other actives included DG Khan Cement, lower 95 paisa at Rs135.55 on 12m shares, and Pakistan Petroleum, higher by Rs2.55 at Rs228.25 on 12m shares. Some others also rose but on light turnover.
DEFAULTER COS: Dandot Cement again came in for active support and rose by one rupee at Rs13.80 on 1.688m shares, followed by Crescent Standard Bank, higher 20 paisa at Rs13.05 on 0.357m shares. Others were modestly traded mostly on the higher side amid light volume.
DIVIDEND: Union Bank, cash 20 per cent, plus bonus shares of the same amount and National Refinery, interim 35 per cent.