KARACHI, June 29: The KSE 100-share index on Thursday recovered another 407.28 points or 4.32pc boosted by fresh covering purchases and positive signals from the forward counter in regard to smooth clearing of the matured June settlements.
The SECP warning to share price manipulators seeking legal action against the erring ones continued to inspire fresh buying as investors’ morale remained on the higher side on the perception that the history of previous market crashes may not be repeated owing to strict daily official monitoring.
It finished the session with a fresh rise of 407.43 points at 9,841.43 as compared to 9,434.15 points as leading base shares again closed at their upper locks under the lead of OGDC, National Bank and PTCL. The total gain during the last two sessions was 800 points in terms of index (8pc) adding Rs219bn to the total market capital. A credible recovery judged by any standard reflecting the inherent strength of the market.
“The immediate bull target appears to be the level of 10,000 points,” brokers said, adding “beyond that will essentially depend on the new fiscal and portfolio buying”.
The report about smooth settlement of outstanding dues in the matured June contracts was considered another bullish factor as any problem on the part of a member has a negative bearing on the entire counter.
The interesting feature was that some of the undervalued shares also came in for active support as most of them ensure capital gains if the current recovery tempo was sustained. Pak PTA, Telecard, Fauji Cement and Pakistan Cement were leading among them.
“What seems to have restored investor confidence is the perception that the SECP means what it has communicated to the bourses’ chiefs,” analysts said, adding “the message was promptly picked up both the bears and the bulls as was reflected in the continuation of the bull-run”.
The other stabilising factor was reports of year-end buying by some of the financial institutions and the absence of any significant selling from the leading bears.
Pakistan Services and Arif Habib Securities were leading among the gainers, up by Rs18.70 and Rs23.60. Other major gainers were led by National Bank, MCB, Pakistan Petroleum, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Atlas Honda and Colgate Pakistan, which posted gains ranging from Rs9.50 to Rs16.
Mustehkam Cement and Unilever Pakistan were marked down by Rs7.90 and Rs30 respectively followed by National Foods, Premier Sugar, Atlas Battery and Pakistan Cables, off by Rs3 to Rs595.
Trading volume suffered a sharp contraction at 141m shares as compared to 197m shares a day earlier but gainers maintained a strong lead over the losers at 294 to 61, with 20 shares holding onto the last levels.
OGDC maintained its upward drive and rose by another Rs6.25 at Rs131.90 on 11m shares followed by Pakistan Cement, steady by 80 paisa at Rs14.30 on 9m shares, Pak PTA, firm by 25 paisa at Rs6.80 on 8m shares, D.G.Khan Cement,
higher by Rs4.25 at Rs89.55 also on 8m shares, National Bank, up by Rs9.85 at Rs207.50 also on 8m shares and PTCL, higher by Rs1.90 at Rs38.50 on 6m shares.
The other actives were led by Fauji Cement, up by Re1 on 4m shares, Fauji Feriliser Bin Qasim, higher by Rs1.35 also on 4m shares and Pioneer Cement, higher by Rs1.95 on 3m shares.
DEFAULTER COS: Share values on this counter also showed fractional gains in sympathy with the ready section on stray buying but there were not many big deals. Dandot Cement was an exception, which came in for modest selling and fell by 20 paisa at Rs11.30 on 0.147m shares. Others were modestly traded.
DIVIDEND: Kohinoor Energy, interim cash at the rate of 10pc.