KARACHI, March 20: Active buying in National Bank and insurance shares aided by higher payouts featured trading on the stock market on Monday where other leading shares also closed with an extended gain amid brisk activity.
The market’s buoyant mood was also well reflected in the KSE 100-share index which settled well above the 11,000 index level on active fresh buying in leading base shares and analysts predict its next target could be 12,000 aided by strong foreign support on the oil sector.
After having risen by 346 points at 11,258.22, it attracted selling in some of the leading base shares and finished reacted at 11,032.31, up 81.23 points as compared to the previous 10,951.08 points. Barring Pakistan Petroleum, all the leading base shares posted fresh gains.
Apart from the strong presence of foreign fund buying on selected counters, the major boost to price flare-up was attributed to higher cash dividend of 25 per cent plus bonus shares of 20 per cent by National Bank of Pakistan. Its share value rose by Rs13.20 at Rs277.80 on fresh buying aided by higher profit after tax profit of Rs12.7 billion and EPS Rs21.51.
The annual profit of National Bank was in line with the analysts’ predictions, but opinions are now divided over future outlook of share value. Some say it could match the pre-reaction level above Rs325 per share, but others say profit-selling may set in at the inflated level.
“It could well be the last dividend from a leading bank for the last year,” some analysts said, adding: “Whether or not the current run-up could be sustained owing to the presence of foreign buying and local speculative activity is not clear at this stage.”
During the last year ending Dec 31, about two commercial banks had shown a massive increase of 99 per cent in their profits, outpacing the energy and power sector. A steep rise in their share value is well reflected owing to higher earnings.
Dividend plus bonus shares by some of the leading insurance companies and Allied Bank were on the higher side of the market perceptions and stimulated active buying on their respective counters.
News from the oil sector are positive as new oil and gas discoveries will continue to provide support to the prospective buying at the current lower levels some of the blue chips have reached but some of them are already at their peak levels.
“Most of the leading investors are ignoring political implications of the law and order situation in some of the areas but those who are thinking of long-term investment in the share business are a bit reluctant,” the analysts added.
Despite a lot of late profit-selling on some of the counters, leading shares managed to finish higher under the lead of Attock Petroleum and Rafhan Maize, up by Rs17.10 and Rs30, respectively, followed by Adamjee Insurance, EFU General, EFU Life, IGI, Attock Refinery, Sanofi-Aventis and Attock Petroleum, which posted gains ranging from Rs7.70 to Rs17.10.
Prominent losers were led by Lakson Tobacco and Pakistan Oilfields, off Rs11.75 and Rs11.95, respectively. Others to follow them were Pakistan Cables, Nestle Pakistan, PSO, Pakistan Engineering and Pakistan Petroleum, off Rs4.50 to Rs11.25.
Turnover figure rose further to 477m shares from the previous 404m shares as gainers maintained a modest edge over losers at 196 to 157, with 38 shares holding on to the last levels.
OGDC topped the list of most actives, up 95 paisa at Rs145.20 (highest Rs151.45) on 94m shares followed by DG Khan Cement, steady by 10 paisa at Rs149.80 on 51m shares, Lucky Cement, off 50 paisa at Rs114 on 39m shares, Fauji Fertilizer Bin Qasim, unchanged at Rs40 on 30m shares, PTCL, also unchanged at Rs62.95 after having hit the day’s highest at Rs64.35 on 28m shares, and Pakistan Petroleum, off Rs1.25 at Rs251.50 on 24m shares.
Other actives were led by Fauji Cement, firm 10 paisa on 16m shares and Nishat Mills, up Rs3.10 at Rs135.00 on 12m shares.
FORWARD COUNTER: OGDC was also actively traded on the forward counter and after early rising to Rs152 it finished reacted to close at Rs146.45, up 55 paisa on 32m shares, followed by Pakistan Oilfields, off Rs11.15 at Rs585.50 on 20m shares and Pakistan Petroleum, lower by Rs11.30 at Rs252 on 18m shares.
MCB followed them, up Rs2.25 at Rs227.75 on 15m shares, and DG Khan Cement, off 60 paisa at Rs149.60 on 14m shares. Some others were also actively traded mostly on the higher side.
DEFAULTER COS: Barring Dandot Cement which remained in active demand and rose by 20 paisa at Rs12 on 0.283m shares, all others were fractionally traded on the higher side.
DIVIDEND: Allied Bank, cash 25 per cent; Premier Insurance, cash 20 per cent, plus bonus shares of the same amount; EFU Life, cash 20 per cent, bonus shares in the ratio of three for every seven held; EFU General, cash 30 per cent, bonus shares in the ratio of two for every three held; KSB Pumps, cash 30 per cent; and Wyeth Pakistan cash 60 per cent.
BOARD MEETINGS: Pak-Suzuki Motors, Indus Dyeing on March 24; Unilever Pakistan and Habib Insurance on March 25; and Abbott Lab on March 27.