KARACHI, June 18: Trading on the stock market on Monday resumed on a positive note as investors covered positions at the weekend lower levels on the oil and cement counters aided partly by the revival of foreign buying. The KSE 100-share index was up by 129 points at 13,567.
Market sources said leading foreign investors, who took profits at the inflated levels on some of the overvalued counters at the fag-end of the last week, were back in the market and provided the much-needed lead to shaky local punters.
Some others said it was a technical correction in an overbought market, which paved the way for the return of a bull-run, what they called, the consolidation phase.
The KSE 100-share index resumed its upward march to its next target of 14,000 points as foreign investors and local institutional traders covered positions in the oil, cement and banking sectors at the weekend lower levels.
It ended with a smart rise of 128.93 points well above its next near-term target of 13,500 at 13,567.40 but well below the session’s best level of 13,580.52. The free float 30-share index also rose by 153.83 points at 16,906.48 points.
“The index level of 14,000 points now is not an elusive goal,” one analyst predicts “strong renewed buying in the cement, oil and bank shares could comfortably take it to that level after having passed through consolidation phases.”
It appears to be a grand technical rebound, of course, after due technical correction, brokers said adding ”both oil giants, OGDC and PSO being main players.”
“The return of foreign buyers though on selected counters apparently on renewed US support for the existing setup and perception of continuation of the existing policies appears to be the chief inspiring factor behind the current run-up,” said a leading analyst and that “could put the market in a good shape in the coming weeks also.”
Although the news from the political front were not that encouraging investors were not inclined to miss the rising market as some post-budget positive fiscal measures have also beginning to play their due role, he added.
PSO, which has been under pressure for the last couple of sessions on reports of petition filed by the Attock Group on its participation in the pre-bidding meeting, was again in the limelight and finished with a sharp rise of Rs13.30 at Rs418.30 on about 6,000 shares at this high rate.
Market talk - that pre-bidding meeting of the PSO will be held on the scheduled date of June 20, seems to have triggered fresh buy stops in it, having a stabilising impact on the hereto highly volatile market, analyst said.
Plus signs spread all over the list under the lead of Sanofi-Aventis and JS & Co, which rose by Rs16.20 and 17.75, followed by Grays of Cambridge, Shezan international, Pakistan Services, IGI Insurance, and Packages, which posted gains ranging from Rs10 to 15.
Among the other good gainers, Arif Habib Ltd, Javed Omer, EFU General, Saphhire Fibres, Attock Petroleum, Pakistan Engineering, Al-Ghazi Tractors, Atlas Honda and National Foods were notable, up by Rs7 to 9.50.
Colgate Pakistan and Wyeth Pakistan, were leading among the losers, off Rs20 to 96.15, respectively. Lakson Tobacco, United Bank, HinoPak Motors, Pakistan and National Refinery followed them, off Rs5 to 17.60.
Trading volume, however, suffered fresh fall at 257m shares as compared to previous 271m shares as investors held on to their positions anticipating further rise in prices. Gainers topped losers by 258 to 113, with 36 shares holding on to the last levels.
The most active list was topped by OGDC, up Rs1.75 at Rs122.35 on 21m shares followed by D.G.Khan Cement, higher by Rs1.55 at Rs116.95 on 18m shares, Bank of Punjab, sharply higher by Rs3.25 at Rs116, Lucky Cement, up Rs2.45 at Rs123.90 on 14m shares, PTCL, firm by 65 paisa at Rs54.65 on 12m shares, Fauji Fertiliser bin Qasim, steady by 10 paisa at Rs37.95 on 7m shares and Arif Habib Securities, higher by Rs5.80 at Rs122 also on 7m shares.
Other actives were led by Telecard, firm by 45 paisa on 7m shares and Askari Bank, steady by 65 paisa on 6m shares.
FORWARD COUNTER: OGDC also led the list of actives on the cleared list and was marked up by Rs1.40 at Rs122.60 on 6m shares followed by D.G.Khan Cement, higher by Rs1.40 at Rs117.40 also on 6m shares and Lucky Cement, up Rs1.85 at Rs123.75 on 5m shares.
Bank of Punjab followed them, higher by Rs3.25 at Rs116.55 on 4m shares and PSO, sharply higher by Rs14.50 at Rs420.50 also on 4m shares.
DEFAULTER COS: Active trading was witnessed on this counter followed by reports of management changes, textile sector being in the limelight. Japan Power led the list, up by one rupee at Rs5.70 on 3.315m shares followed by Mukhtar Textiles, higher by 95 paisa at Rs3.45 on 1.079m shares.
Norrie Textiles also came in for active support and rose by five paisa at Rs2.80 on 0.938m shares and Nimir Chemicals, lower by 10 paisa at Rs3.90 on 0.821m shares. Dewan Auto, Redco and Harum Textiles were also actively traded on the higher side.