KARACHI, Jan 31: Stocks on Wednesday resumed trading on a higher note as institutional traders and foreign investors continued to make fresh covering purchases on selected counters ahead of their board meetings and market talks of higher payouts. The KSE 100-share index posted fresh gain of 167 points or 1.50 per cent at 11,272.33.
But bulk of the foreign buying remained confined to the leading oil shares under the lead of OGDC and Pakistan Oilfields, while others blue chips also rose modestly.
The KSE 100-share index maintained its upward drive boosted by strong buying in the leading oil and bank shares aided by higher international prices and encouraging corporate earnings.
It finished the session with an extended gain of 116.99 points or 1.50 at 11,272.33 as compared to 11,105.34 at the fag-end of the last week, reflecting that bulls are not inclined to loosen their grip on the rising market.
OGDC was the top scorer followed by PTCL, Pakistan Oilfields, Pakistan Petroleum, National Bank and D.G.Khan Cement.
“The post-Ashura strong extended rally indicates that the next bull target could be 11,500 points before technical factors should become operative,” said a leading stock analyst Hasnain Asghar Ali adding ”the market is already in a danger zone owing to sustained run-up of about 1,800 points during the last three weeks.”
True to an old adage “As goes January so goes the market” and a massive increase in the last session of the month reflects that the bull-run was sustained throughout as the index is heading to establish new record, he said.
But Ahsan Mehanti, another analyst said some technical factors, notably market talk of some relaxation in the operative Capital Value Tax and withholding tax seems to have sustained the current bull-run carried through from the pre-Ashura sessions.
However, the general perception is that upcoming dividend news from the banking, oil and other sectors, whose annual years ended on Dec 31, will continue to inspire fresh buying on selected counters and could boost the index to further higher levels.Apart from the sustained price flare-up, the other supporting factor was advent of foreign buying on selected counters followed by strong institutional covering purchases, brokers said.
Arif Habib and Nestle Pakistan were leading among the gainers, up by Rs53 and 112.40, followed by United Bank, Shell Gas, Pakistan Oilfields, Dawoood Hercules, Rafhan Bestfoods, Pak-Suzuki Motors and Treet Corporation, which posted gains ranging from Rs4 to 8.
Losers were led by Pakistan Cables and Clariant Pakistan, off Rs10.50 and 11.35, respectively. Millat Tractors, Clover Pakistan, Lakson Tobacco, and Wyeth Pakistan followed them, off Rs4 to 10.
Trading volume fell to 268m shares from the previous 297m shares but gainers maintained a fair lead over the losers at 167 to 135, with 36 shares holding on to the last levels.
OGDC topped the list of actives, higher by Rs2.70 at Rs134.50 on 35m shares followed by PTCL, up Rs1.40 at Rs55.25 also on 35m shares, D.G.Khan Cement, firm by Rs1.20 at Rs72.95 on 18m shares, Bank of Punjab, lower 70 paisa at Rs114.90 on 17m shares, Fauji Fertiliser Bin Qasim, steady by 45 paisa at Rs31.15 on 12m shares, Hub-Power, up 85 paisa at Rs31.90,also on 12m shares, and National Bank, higher by 80 paisa at Rs279.30 also on 12m shares.
Other actives included Pakistan Petroleum, unchanged on 11m shares, Nishat Mills, higher by Rs4.10 on 9m shares and Pakistan Oilfields, up Rs4.50 also on 9m shares.
FORWARD COUNTER: Bank of Punjab led the list of actives on this counter, off 75 paisa at Rs115.75, followed by OGDC, up Rs2.45 at Rs124.95 on 6m shares, National Bank, firm by 90 paisa at Rs280/90 on 5m shares.
Other actives were led by Pace Pakistan, higher by 65 paisa at Rs30.05 on 4m shares and PTCL, higher by Rs2.10 at Rs55.35 on 4m shares.
DEFAULTER COS: Crescent Standard Bank came in for active selling and fell by five paisa at Rs4.25 on 0.494m shares followed by Crescent Modaraba, up five paisa at Rs1.60 on 0.160m shares and Unity Modaraba, easy five paisa at 70 paisa on 0.191m shares.Norrie Textiles and Japan Power, on the other hand were traded higher by 20 and 15 paisa at Rs4 and Rs4.60 on 0.129m and 0.150m shares, respectively.