KARACHI, Feb 20: Stocks on Monday remained in a bullish frame of mind despite active profit-selling triggered by heavy outstanding positions in future contracts amid fears about smooth rollover to the new settlements.
However, the selective run-up was boosted by fresh heavy buying in oil and bank shares amid reports of higher dividend and privatization of some of the oil giants including PSO possibly during the current year.
Near-panic buying in National Bank, MCB, PSO, Pakistan Oilfields and some others intensified the current run-up, although some of the leading investors played on both sides of the fence fearing snap reaction.
The market’s buoyant mood despite negative press comments on the current price flare-up was well-reflected in the KSE 100-share index, which is heading toward its next target of 12,000 on the strength of higher corporate earnings and steadily increasing foreign support on selected counters.
After having touched at one point the day’s highest at 11,493.62, it finally ended reacted at 11,441.85 as compared to previous 11,352.63, incidentally being the session’s lowest, up by 89.22 points.
All leading current favourites finished with limit gains and their career best levels as investors were not inclined to take an overview of their being terribly overvalued and fraught with high risks despite talk of higher cash dividend and bonus shares.
It was earlier higher by 140 points but weakness of OGDC halted its upward drive and ended reacted but massive buying in PTCL, National Bank, MCB, D.G.Khan Cement and PSO did not allow to show sign that the current run-up is overdone.
Opinions are, however, divided over the market’s future trend being in a highly overbought position. Some say it could take a breather after having touched the index level of 12,000 on the strength of overdue corporate announcements, notably from the banking and cement sectors.
“The current week is a rollover week as investors will have to square outstanding positions for the February future contracts”, some analysts said and added that “as the positions in some of the leading scrips are terribly higher there could be selling in them followed by sympathetic unloading in others”.
However, much will depend on the intensity of the sell-off and the market’s absorption capacity, they said, adding “if there is some rollover problems it might follow panic selling”.
But some other said that the technical reaction may not be that aggressive as speculated by some of the brokers as ground realities signal that both leading local and foreign buyers may not be deterred by any amount of sell-off on technical grounds.
Leading gainers were led by Sanofi Aventis and PSO, up by Rs16.35 and Rs21.50 respectively followed by National Bank and MCB, which rose by Rs9.35 and Rs11. Other prominent gainers included United Bank, Central Insurance, D.G.Khan Cement, Attock Petroleum, Mari Gas, Millat Tractors, Engro Chemical and ICI Pakistan, up by Rs6 to Rs8.85.
Losers were led by Bhanero Textiles and Wyeth Pakistan, off Rs9.10 and Rs100 respectively followed by Shell Pakistan, Jahangir Siddiqui Capital Markets Fund, Sapphire Textiles, Dawood Hercules, Ferozsons Lab, Glaxo-SKF, PNSC, IGI and Fazal Textiles, off Rs4 to Rs8.10.
Trading volume fell to 498m shares from the weekend 539m shares but gainers maintained a modest lead over the losers at 188 to 170, with 54 shares holding on to the last levels.
The most active list was again topped by OGDC, off Rs1.60 at Rs151.55 on 52m shares followed by D.G.Khan Cement, up by Rs6.20 at Rs144.20 on 51m shares, PTCL, firm by Rs1.20 at Rs68 on 44m shares, National Bank, higher by Rs9.35 at Rs282.35 on 39m shares, MCB, up by Rs11.00 at Rs251 on 31m shares, PSO, higher by Rs21.50 at Rs452.30 on 25m shares, Pakistan Oilfields, up by Rs2.10 at Rs576.50 on 23m shares.
Other actives were led by Fauji Fertilizer Bin Qasim, firm by 55 paisa on 26m shares, Pakistan Petroleum, up by Rs1.35 on 22m shares and Sui Southern Gas, higher by Rs1.70 on 19m shares. The notable feature was that trading also started in the newcomer March settlements side by side the maturing February contracts.
FORWARD COUNTER: OGDC also led the list of actives on this counter, lower by Rs1.50 at Rs152.30 on 16m shares followed by D.G.Khan Cement, up by Rs6.15 at Rs144.65 on 15m shares and National Bank, higher by Rs10.35 at Rs283.35 on 12m shares.
Other actives included Pakistan Petroleum, firm by 80 paisa at Rs277.70 on 10m shares and MCB, up by Rs9.20 at Rs250.65 on 9m shares. PSO, Pakistan Oilfields and some others also posted sharp gains amid modest turnover.
DEFAULTER COS: Dandot Cement led the actives on this counter, higher by 95 paisa at Rs13.05 on 0.445m shares followed by Quice Foods, up by Re1 at Rs4.35 on 0.116m shares.
DIVIDEND: Rafhan Bestfoods, cash 100 per cent, Jahangir Siddiqui Capital Markets, bonus shares at the rate of 20 per cent, Faysal Asset Management, bonus shares 20 per cent or Rs20 per certificate.