KARACHI, May 31: The KSE 100-share index on Thursday narrowly missed its coveted target of 13,000 points by only six points and finished at its so far all-time peak level of 12,961.26 points, up by 154.33 points or 1.21 per cent on strong pre-budget buying by local and foreign investors. The free-float 30-share index soared by 315.70 points at 16,277.49 points.
The unprecedented price flare-up on the active counters reflects that it was a judicious blend of both genuine investment and speculative buying and could be sustained in the sessions to come, pushing the index to its new chart point, brokers said.
“It may not be a miracle if it touches the 14,000-point level in the pre-budget sessions,” a leading analyst Ashraf Zakria observed, adding “despite political tensions positive market fundamentals reinforce this perception”.
However, the upward march was not that smooth as bears intercepted more than once during the session. It was later pulled down from all-time high of 12,994.40 points to close lower on profit-selling.
Oil, cement, bank and fertiliser shares witnessed a massive buying from some leading foreign investors and institutional investors with focus on selected counters.
“Foreign investors seem to be encouraged by the higher earning per share (eps) ratio and growth factors in the form of capital appreciation and re-entered the market in a big way apparently ignoring the likely impact of judicial crisis on the share market, analyst Ahsan Mehanti noted.
Together with some positive news from the budget front including fiscal incentives for the trade and industry and market talk of reduction in Capital Value Tax (CVT) rate and the advent of strong foreign buying has changed the entire future share market outlook, analyst Faisal Abbas said.
“I don’t call it a speculative price flare-up,” he said, adding “corporate earnings, potential of higher payouts and capital gains do not allow investors to take note of some of the lethal depressants”.
For the third time during the last couple of sessions, the volume figure crossed the level of 400m shares and it reflected the stock market undercurrent and investor perceptions, some others said.
Plus signs dominated the list under the lead of bank shares, notably National Bank, MCB and Bank of Punjab, which finished with sharp gains on large volume.
Unilever Pakistan and Siemens Pakistan were leading among the gainers, up by Rs89 and Rs31.25, followed by Grays of Cambridge, Ferozsons Lab, Clariant Pakistan, JS & Co, JS Global, Adamjee Insurance, Attock Petroleum, Millat Tractors, Sanofi-Aventis, MCB and Rafhan Maize, which posted gains ranging from Rs10 to Rs21.Prominent losers were led by Nestle Pakistan and National Foods, off Rs13 and Rs6. Others fell modestly barring Javedan Cement, Pakistan Engineering, Indus Motors, Atlas Battery, Sitara Chemicals, Lakson Tobacco and HinoPak Motors, off Rs4.30 to Rs5.
Trading volume soared to 410m shares from the previous 308m shares as gainers held a strong lead over the losers at 220 to 145, with 40 shares holding on to the last levels.
Bank of Punjab topped the list of actives, up by Rs5.55 at Rs118.80 on 41m shares, TRG Pakistan, firm by 90 paisa at Rs12.90 on 35m shares, Askari Bank, up by Rs3.10 at Rs99 on 23m shares and D.G. Khan Cement, higher by Rs2.70 at Rs105.70 on 22m shares,
OGDC, up by 95 paisa at Rs122.45 on 20m shares, Hub-Power, steady by Rs1.60 at Rs34.70 on 20m shares and National Bank, up by Rs5.30 at Rs253.30 on 12m shares.
Other actives were led by Lucky Cement, up by Rs1.30 on 16m shares, Fauji Fertiliser Bin Qasim, easy 10 paisa on 15m shares and Maple Leaf Cement, lower 20 paisa on 14m shares.
FORWARD COUNTER: Bank of Punjab also led the list of actives on the cleared list, higher by Rs5.60 at Rs119.50 on 8m shares, MCB, sharply higher by Rs13.45 at Rs339.95 also on 8m shares and D.G. Khan Cement, up by Rs2.50 at Rs106.40 on 6m shares.
Lucky Cement followed them, firm by Rs1.05 at Rs111.05 on 6m shares and Askari Bank, higher by Rs2.95 at Rs99.60 on 4m shares.DEFAULTER COS: Active trading was again witnessed on this counter where about dozen shares came in for alternate bouts of buying and selling. Quice Foods was leading among them, easy five paisa at Rs5.25 on 0.464m shares followed by Nimir Chemical, lower 10 paisa at Rs3.45 on 0.442m shares and Japan Power, up by 15 paisa at Rs.4.40 on 0.308m shares.
Other actives were led by Pangrio Sugar, lower 50 paisa at Rs5.95 on 0.242m shares followed by Unity Modaraba, Norrie Textiles, National Assets, Zeal Pak Cement, Sehrish Textiles and Shakarganj Foods, which showed either-movements.