KARACHI, Jan 17: Despite mid-session profit-selling in some of the leading base shares, stocks on Wednesday extended the overnight gains on active institutional support amid market talk of encouraging corporate announcements during the next couple of sessions. The KSE 100-share index finished with a fresh rise of 26.52 points at 10,617.11.
“The tempo of mini bull-run is progressively building up ahead of the advent of corporate results season,” analysts said “leading banks could set the ball rolling during the next couple of weeks.”
Below market expectations final dividend of 45 per cent by Dawood Hercules, which makes the total to 80 per cent as the company has already paid an interim dividend of 35 per cent triggered fresh selling in its shares, off Rs7.80. Last year it came out with a cash of 85 per cent plus bonus shares at the rate of 15 per cent.
Sharp increase in the volume figure to well over 200m shares indicates that big players are very much in the trading arena and are inclined to restore lost glory to the share business in the sessions to come, analysts said.
Although the KSE 100-share index finished well below its session’s peak level of 10,677 at 10,617.11, it ended with a fresh modest rise of 26.62 points as compared to 10,590.59 a day earlier. The KSE 30-share index also posted a fresh gain of 54.02 points at 13,345.06.
The fresh rise despite selling in OGDC, PTCL and National Bank shows that the market is in a perfect bullish mood and out to explore new highs.
It should have ended around the peak levels but increase in CFS lending beyond the ceiling triggered selling on some of the overvalued counters owing to risks involved, brokers said.
All the leading base shares, notably MCB, and some oil giants including Pakistan Petroleum, PSO on reports of its sell-off during the next couple of weeks and OGDC followed by market talk of oversubscription of its new issue at the rate of Rs110 per share were leading among the trend-setters.
“The market witnessed aggressive alternate bouts of buying and selling allowing it to consolidate well above the lower levels,” brokers said “the proceedings reflected a genuine activity based on long-term new year strategy.”
Leading gainers were led by Rafhan Maize and Rafhan Bestfoods, up by Rs49.60 and 25.35, followed by PSO, EFU Life, Jahangir Siddiqui Capital, Clariant Pakistan, Gillette Pakistan, Nestle Pakistan, Siemens Pakistan and Lakson Tobacco, up by Rs5.35 to 23.45.
Prominent losers included Dawood Hercules and Unilever Pakistan, off Rs7.80 and 15. Others to follow them were National Bank, United Sugar, Javedan Cement, Clover Pakistan, Zulfiqar Industries and Jahangir Siddiqui & Co, off Rs3.35 to 7.30.
Trading volume swelled to 224m shares from the previous 167m shares as gainers held a modest lead over the losers at 157 to 152, with 49 shares holding on to the last levels.
PTCL came in for stray selling after last two sessions’ sustained run-up and fell by 10 paisa At Rs51.25 on 18m shares followed by OGDC, easy by Rs1.35 at Rs117.55 also on 18m shares, KESC, up by Rs85 paisa at Rs17m shares, National Bank, off Rs3.35 at Rs257.90 on 16m shares, Pakistan Petroleum, higher by Rs2.15 at Rs247.50 on 15m shares, MCB, steady 10 paisa at Rs268.75 on 14m shares and PSO, higher by Rs5.80 at Rs322 on 10m shares.
D.G.Khan Cement followed them, firm by 30 paisa on 12m shares, Bank of Punjab, steady by 15 paisa on 10m shares and Hub-Power, higher by Rs1.35 on 9m shares.
FORWARD COUNTER: National Bank came in for active selling and was marked down by Rs3.65 at Rs258.65 on 10m shares followed by MCB, steady by 10 paisa at Rs269.20 on 9m shares and PTCl, lower five paisa at Rs51.30 on 7m shares.
PSO followed them, higher by Rs6.80 at Rs323.80 on 5m shares and Pakistan Petroleum, up Rs1.25 at Rs247.70 also on 5m shares. Others were modestly traded amid fractional price changes.
DEFAULTER COS: Active trading was again witnessed on this counter as a section of investors indulged in alternate bouts of buying and selling on fractional gains.
Crescent Standard Bank led the list of actives, up 10 paisa at Rs5.25 on 0.556m shares followed by Japan Power, higher 15 paisa at Rs4.20 on 0.303m shares and Nimir Chemicals, unchanged at Rs3 on 0.260m shares. Unity Modaraba and Norrie Textiles also ruled firm.