KARACHI, Oct 6: The share market closed the weekend session on a bullish note, but the underlying sentiment remained highly shaky in the backdrop of negative news from Islamabad, notably rocket incident. The KSE 100-share index posted a fresh gain of 71.09 points at 10,926.91.
However, after turning into a highly volatile performance, the index managed to close the week on a higher note, paving the way for another bullish opening next week.
But leading analysts warned investors to play safe in an overbought market, which could work both sides of the fence after trading resumes next Monday.
Despite a good bit of weekend profit-selling at the inflated levels followed by bad news from Islamabad, stocks ended the week with fresh gains in oil, cement and banking shares.
There was, however, a technical pause and an interruption in the market’s upward drive amid hasty selling triggered by reports of foiling of a rocket attack aimed at the presidency and the parliament house just at the heels of a bomb blast in a park a day earlier in Rawalpindi.
After moving either-way, the KSE 100-share index posted a fresh rise of 71.09 points at 10,926.91 as compared to 10,855.82 a day earlier, while KSE 30-share index was last quoted at 13,613.96, up 69.78 points as compared to 13,544.18 a day earlier.
“The index is now only 74 points from its coveted level of 10,000 points,” says an analyst. “I presume it would take a breather after hitting this level.”
However, as the basic fundamentals, both in terms of higher corporate announcements and the presence of foreign support in some of the bank shares were bullish, investors were back in the market and covered positions in a short Friday session.
“But the current events in Islamabad worried investors as their underlying impact on a sensitive market may not be that good,” analysts said. “The perception that they could be a prelude to some bigger ones forced them to have an overview of their future buying strategy.”
“The strong presence of foreign buying could well prove them a passing phase as a good part of their negative fallout has already been absorbed by the market,” some others said.
No one could deny the fact that the market is in an overbought position and needs a correction but it is unclear how bid it could be and may not be beyond its technical demands, they added.
Bank shares again led to the market’s upward drive as investors made fresh covering purchases in those which are said to be the target of foreign buying. Oil and cement shares also performed well and kept the market in a positive mood despite weekend selling.
Attock Petroleum and Arif Habib Securities were leading among the gainers, up Rs13 and Rs18.95, respectively, followed by IGI Insurance, HinoPak, Millat Tractors, Pak-Suzuki Motors, Pakistan Cable and Adamjee Insurance, up by Rs4.05 to Rs7.60.
National Bank and Bata Pakistan fell by Rs4.50 and Rs6.20, respectively. Other losers were led by Blessed Textiles, Thal Industries, JWD Sugar and Glaxo-SKF, off Rs2 to Rs2.25.
Trading volume fell to 204m shares from the previous 254m shares but gainers maintained a strong lead over losers at 160 to 114, with 41 shares holding on to the last levels.
DG Khan Cement topped the list of actives, higher by Rs3 at Rs101.25 on 27m shares followed by OGDC, up Rs2.25 at Rs135.85 on 25m shares, National Bank, off Rs4.50 at Rs271.50 on 19m shares, Pakistan Petroleum, higher by Rs3.70 at Rs241.70 on 15m shares, Bank of Punjab, firm by Rs2.09 at Rs92.90 on 13m shares and PTCL, steady by 15 paisa at Rs42.25 on 10m shares, and Lucky Cement, higher by Rs1.65 at Rs105.15 also on 10m shares.
Other actives were led by WorldCall Telecom, steady by 20 paisa on 7m shares, followed by Bank Alfalah, off Rs1.70 at Rs48.75 also on 7m shares and Faysal Bank, lower 75 paisa on 6m shares.
FORWARD COUNTER: MCB again led the list of actives on the cleared list but closed well below its day’s peak level of Rs277.20 at Rs273.75 on 9m shares followed by Bank of Punjab, higher by Rs1.35 at Rs93.20 on 7m shares, and DG Khan Cement, higher by Rs1.80 at Rs90.60 on 6m shares.
National Bank on the other hand came in for modest selling and was quoted lower by Rs3.30 at Rs273.50 on 5m shares and Pakistan Petroleum, higher by Rs2.40 at Rs237.40 on 4m shares.
DEFAULTER COS: Crescent Standard Bank came in for active support and rose by 25 paisa at Rs4 on 1.931m shares followed by Unity Modaraba, unchanged at 75 paisa on 0.196m shares and Norrie Textiles, lower 20 paisa at Rs4.80 on 0.150m shares.
DIVIDEND: Nishat Chunian, cash 15 per cent, National Bank Modaraba, 10 per cent, Masood Textiles, 15 per cent, Biafo Industries, five per cent interim, and Regent Textiles, five per cent.