KARACHI, Jan 24: Fresh heavy buying in MCB and National Bank linked to higher dividend featured the Wednesday’s stock market trading pushing the KSE 100-share index up by 152 points amid an expanded turnover figure of over 200m shares.
The price flare-up of Rs13.35 in MCB at Rs287.60 was also attributed to market talk of some foreign interest in it strongly aided by expectations of higher final dividend.
Both strong speculative buying and bargain-hunting in banking shares was attributed to likely higher payouts, while oil giants reacted bullishly to reports of rebound in international oil prices, analysts said.
The KSE 100-share index shrugged off the overnight sluggishness and was quoted higher by 152 points or 1.41 per cent at 10,856.74 as compared to 10,705.32 a day earlier as all the leading base shares virtually ran up to their pre-reaction levels on strong covering purchases. The KSE 30-share index rose by 244.67 points at 13,691.09 points.
MCB, National Bank, OGDC, PTCL, Pakistan Petroleum and PSO were in the forefront of gainers and intensified the market’s upward drive.
Both the MCB and the National Bank finished around their upper locks, up by Rs13.35 and Rs7.90 respectively, reflecting the intensity of buying support.
“The index is only 150 points away from its immediate target of 11,000 and indications are that it could confidently surpass it during the next two sessions,” analyst Ahsan Mehanti said.
The reports of higher dividend and bonus share announcements by the banking sector, privatisation of PSO by March and the current lower ruling levels of most of the blue chips could evoke any amount of buying in them during the next couple of weeks, another leading analyst Ashraf Zakaria said.
On the technical side, higher CFS investment around Rs42 billion did worry those who have a bigger stake but other positive factors will allow the market to sustain the current run-up.
Unilever Pakistan and Nestle Pakistan were leading among the gainers, up by Rs49.95 and Rs56, followed by EFU Life, PSO, Pak-Suzuki Motors and Lakson Tobacco, up by Rs8.10 to Rs29.90.
They were followed by Mirpurkhas Sugar, Shell Pakistan, PSO, Colgate Pakistan and Engro Chemical, higher by Rs5 to Rs5.80.
Siemens Pakistan and Wyeth Pakistan fell by Rs59.95 and Rs100 respectively. Pakistan Tobacco, Shell Gas, Dawood Hercules, Sitara Chemicals, Treet Corporation and Clariant Pakistan followed them, off by Rs4 to Rs13.25.
Trading volume soared to well over 216m shares but losers held a modest lead over the gainers at 161 to 156, with 36 shares held on to the last levels.
National Bank topped the list of actives, up by Rs7.90 at Rs268.75 on 30m shares followed by MCB, sharply higher by Rs13.35 on reports of foreign interest at Rs287.60 on 25m shares, OGDC, firm by Rs1.75 at Rs118 on 19m shares, PTCL, steady by 75 paisa at Rs50.65 on 18m shares, Pakistan Petroleum, up by Rs3.25 at Rs248.50 on 12m shares, PSO, higher by Rs8.10 at Rs334.50 on 8m shares and Engro Chemical, up by Rs5.80 on 7m shares.
They were followed by Fauji Fertiliser Bin Qasim, up by 55 paisa on 19m shares, Bank of Punjab, up by Rs1.60 on 12m shares and D.G. Khan Cement, higher by Rs1.05 on 7m shares.
FORWARD COUNTER: MCB topped the list of actives on this counter, higher by Rs12.26 at Rs288 on 7m shares, followed by National Bank, up by Rs7.65 at Rs268.75 also on 7m shares and its February contract, up by Rs6.90 at Rs270.70 on 7m shares.
MCB January contract rose by Rs12.75 at Rs286.75 on 6m shares and Fauji Fertiliser Bin Qasim rose by 40 paisa at Rs30.20 on 5m shares for the ruling February contract.
DEFAULTER COS: Crescent Standard Bank came in for active selling at the higher level and fell by 10 paisa at Rs4.55 on 1.019m shares followed by Nimir Chemicals, lower 15 paisa at Rs3.25 on 0.356m shares and Indus Polyester, higher by 35 paisa at Rs4 on 0.205m shares. Japan Power and Norrie Textiles were also actively traded.
DIVIDEND: Lakson Tobacco, interim cash 38 per cent, Fauji Fertiliser Bin Qasim, final 12.5 per cent, interim of an identical amount already paid, Usman Textiles, nil.