KARACHI, Feb 7: The stock market on Wednesday remained in a bullish frame of mind as investors continued to build-up long positions on selected counters anticipating higher dividend announcements by some of the leading companies.
Dividend announcements by Packages (cash 60 per cent, bonus shares five per cent) and cash payout by Indus Motors at 50 per cent were in line with the analysts predictions and have a positive impact on the market trend.
But unlike the previous sessions, some of the leading shares in the banking and cement sectors still ensuring capital gains remained at the centre of activity and finished with good gains.
The KSE 100-share index ended with a fresh rise of 96.04 points at 11,728.08 as compared to 11,632.04 a day earlier, reflecting the strength of leading base shares, notably Pakistan Petroleum, National Bank, D.G. Khan Cement and PTCL. The KSE 30-share index was up by 181.53 points at 14,892.35 points.
The buying interest seems to have been shifted to most of the low-priced bank and cement shares, although the leading blue chips may not have reached their saturation points and remained stable around their overnight levels barring OGDC, which remained under pressure on renewed selling.
Although there is a lot of fresh buying around, most of the leading shares lacked price flare-up similar to that witnessed last week perhaps risks involved going further higher, floor brokers said adding fractional gains were, however, there.
“Bulk of the support has now shifted to some viable but low-priced bank shares, notably Bank AlFalah, Faysal Bank, Kot Addu Power Company, D.G. Khan Cement and some others, which are still ruling below the 100-rupee mark,” analysts said and that is ”perhaps why leading among them including National Bank and MCB whose upward thrust has been contained around at the current levels.”
“The market is apparently preparing for a technical correction long overdue being in a highly overbought position,” they said “those who know it are holding the fort for apparent reasons.”
Plus signs again dominated the list under the lead of Clariant Pakistan and Packages, up by Rs9.50 and 10.70, followed by EFU General Insurance, EFU Life, MCB, Pakistan Refinery, Rafhan Best foods, Attock Cement, ICI Pakistan and Pakistan Petroleum, up by Rs4.05 to 7.50.
Siemens Pakistan and Wyeth Pakistan were leading among the losers, off Rs30.25 and Rs14. Others were led by Grays of Cambridge, Gillette Pakistan, Dawood Hercules, Agriauots, and Colgate Pakistan, off Rs4.05 to Rs9.
Trading volume suffered a modest fall at 391m shares as compared to 423m shares a day earlier but gainers held a strong lead over the losers at 176 to 136, with 45 shares holding on to the last levels.
OGDC again led the list of actives, off 90 paisa at Rs130 on 41m shares, followed by PTCL, higher by Rs1.90 at Rs56.20 on 40m shares, Pakistan Petroleum, up Rs5.50 at Rs274 on 32m shares, Bank of Punjab, firm 55 paisa at Rs124.15 on 19m shares, Fauji Fertiliser Bin Qasim, steady by 50 paisa at Rs33.60 also on 19m shares, Kot Addu Power, higher by Rs1.70 at Rs52.70 on 17m shares, and Bank AlFalah, up 55 paisa at Rs51.30 on 15m shares.
Other actives were led by D.G.Khan Cement, sharply higher by Rs6.85 at Rs84.30 on 15m shares, Faysal Bank, higher by Rs1.35 at Rs73 on 14m shares and National Bank, up one rupee on 14m shares.
FORWARD COUNTER: OGDC came in for modest short-covering at the lower levels on this counter and finished higher by 25 paisa at Rs130.50 on 11m shares followed by Pakistan Petroleum, up by Rs6.50 at Rs275 on 10m shares and MCB, higher by Rs6.25 at Rs315.50 on 9m shares.
They were followed by PTCL, higher by Rs1.75 at Rs56.25 on 8m shares and National Bank, higher by Rs1.50 at Rs296.50 on 6m shares.
DEFAULTER COS: Fairly brisk activity was witnessed on this counter where some of the investors made speculative buying in cement shares under the lead of Zeal Pak Cement, up one rupee at Rs6.25 on 2.555m shares followed by Dadabhoy Cement, higher by 90 paisa at Rs7.75 on 0.642m shares.
Other actives included Crescent Standard Bank, steady by five paisa at Rs4.50 on 0.760m shares and Nimir Chemicals, unchanged at Rs3.10 on 0.900m shares. Norrie Textiles and Unity Modaraba also actively traded.