KARACHI, May 29: The KSE 100-share index on Tuesday consolidated well above the level of 12,800 points despite profit-selling in some of the leading base shares indicating that the near-term target of 13,000 is still relevant in a highly overbought market and capped CFS. It ended lower by 14 points at 12,817.31.
No one is clear about future direction of the market. Some say it could rise to 14,000 points on the strength of corporate earnings and fiscal incentives in the new budget. But some fear a big correction is now overdue.
Stocks ran into mild profit-selling at the recent inflated levels on some overvalued counters but there were buyers at each dip, indicating that the current bull-run is not overdone.
The KSE 100-share index finished with a modest fall of 13.78 points at 12,817.31 as compared with 12,831.09 a day earlier as some of the leading base shares posted modest fall under the lead of OGDC and some others. Earlier, it touched session’s high of 12894.77 points before closing reacted.
The market has been in the tight grip of bulls for the last couple of weeks and had risen sharply higher as was reflected by over 800 points increase in the index, which broke through four barriers in a row and stood firm well over 12,800 points and needed technical correction, which came in the form of stray selling.
But a modest decline of about 14 points in the index, which is confidently heading toward its next target of 13,000-point reflects bulls are not inclined to take even a technical breather at this stage, analysts said.
“I will not call them fiscal budgetary leaks, they certainly official whispering from the relevant quarters,” some analysts commenting on rumors of 50 per cent in capital value tax (CVT) said.
There is more than one loud whispering in the market about the fiscal incentives, which are expected to keep market in a positive mood in the sessions preceding the National budget, they added.
Fresh speculative buying in cement, leading bank and oil shares and PTCL again remained in the limelight and tended further higher followed by some of low-priced, notably TRG Pakistan, JS Bank and Telecard, which closed with good gains.
JS Global and Rafhan Maize were leading among the gainers, up by Rs17.95 and Rs50 followed by Shell Gas, AKD Capital, HinoPak, Sanofi-Aventis, JS Global, Al-Ghazi Tractors, Pakistan Tobacco and Adamjee Insurance, which posted gains ranging from Rs5 to Rs13.75.Prominent losers were led by Siemens Pakistan and Nestle Pakistan, off Rs59.50 and Rs81.90 in that order. Packages, National Refinery, Pakistan Engineering, Colgate Pakistan, Unilever Pakistan and Wyeth Pakistan followed them, off by Rs6 to Rs20.
Turnover figure swelled well over 400m shares at 403m, as compared to 360m shares a day earlier bulk of which went to the credit of cement and bank shares. But gainers held a slight edge over the losers at 196 to 186, with 31 shares holding on to the last levels.
Lucky Cement topped the list of most actives, up by Rs4.05 at Rs112.20 on 37m shares on the strength of higher exports followed by TRG Pakistan, firm by Re1 at Rs12.35 also on 37m shares, Bank of Punjab, steady by 75 paisa at Rs113.50 on 25m shares, D.G. Khan Cement, firm by 50 paisa at Rs105.75 on 24m shares, Askari Bank, off Rs1.25 at Rs96.70 on 17m shares, OGDC, lower by Rs1.15 at Rs121.80 on 16m shares and PTCL, up by 60 paisa at Rs53.55 on 14m shares.
Other actives were led by Pakistan Oilfields, up by Rs4.10 on 16m shares, JS Bank, higher by 90 paisa on 15m shares and Telecard, up by Re1 on 12m shares.
FORWARD COUNTER: Lucky Cement was also actively traded on the forward counter, higher by Rs4.20 at Rs113.40 on 11m shares followed by D.G. Khan Cement, firm by 90 paisa at Rs106.95 on 7m shares and Bank of Punjab, steady by 35 paisa at Rs114.15 also on 7m shares.
MCB followed them, higher by Rs3.20 at Rs328.50 on 4m shares and Pakistan Oilfields, higher by Rs3.95 at Rs361.10 on 4m shares.
DEFAULTER COUNTER: Active trading was again witnessed on this counter as a section of investors covered positions in selected shares, notably Pangrio Sugar, up by 85 paisa at Rs6.85 on 0.515m shares, followed by Nimir Chemicals, unchanged at Rs3.45 on 0.342m shares.
They were followed by Zeal Pak Cement, easy five paisa at Rs5.15 on 0.325m shares, Redco Textiles, up by 30 paisa at Rs1.70 on 0.274m shares and Unity Modaraba, lower five paisa at 55 paisa on 0.219m shares.