KARACHI, Nov 30: The KSE 100-share index on Friday briefly breached through the barrier of 14,000 points on initial buying in the leading base shares but failed to sustain it owing to weekend selling. The net rise over the day was about 35 points slightly below the barrier at 13,998.52.
The announcement of lifting of emergency before Dec 16, which is one of the major demands of the opposition parties to participate in the January 8 elections, may further boost the underlying sentiment in the upcoming sessions and would lure back foreign investors, some floor brokers hope.
Indications are that the index is expected to stay well above the barrier during the next week as leading investors are back in the market under the lead of financial institutions and may continue mopping operations at the current lower levels, notably on the oil and cement counters.
After early breaching through the barrier of 14,000 points on 14,070.05 on the strength of leading base shares, the KSE 100-share index finally finished with a clipped gain of 34.93 points at 13,998.52 as compared to 13,963.59 a day earlier. But on the other hand the KSE 30-share index rose by 71.64 points at 16,755.72.
It was the last day of the rollover week and it took its toll in the form of selling and rolling of positions from the rung off November contracts to the ruling December delivery.
The president’s promise after taking oath for second-term that he would lift emergency on Dec 16, meeting most of the demands of the opposition should have buoyed investors amid hopes of smooth sailing on the political front, said analyst Ashraf Zakaria.
“But some political jitters are still there, including opposition’s decision of boycotting the upcoming elections if conditions prior to November 3 are not restored, which did not allow investors to make bigger commitments,” he said.Analyst Ahsan Mehanti said the prevailing political polarisation including rigid positions taken by the contenders of power on certain issues continued to have their toll in the form of price erosions despite credible performance by the oil and cement sectors.
“The hints by the US Fed for another rate-cut next month gave a tremendous boost to world bourses and the local stock market could hardly be an exception despite the fact that it may not have a massive foreign stake,” analyst Hasnain Asghar Ali predicts.
Leading gainers were led by Colgate Pakistan, Sitara Chemicals, JS & Co and Wyeth Pakistan, which posted gains ranging from Rs14 to Rs101 followed by MCB, Murree Brewery, Exide Pakistan, Abbott Lab, Atlas Honda and Shell Gas, up by Rs6.50 to Rs11.80.
Losses on the other hand were mostly fractional and were confined to some overvalued shares, notably JS Global, National Foods, Mitchell’s Farms, Agriautos, Attock Petroleum, off by Rs5 to Rs8.10. Grays of Cambridge and Siemens Pakistan were leading among them, off by Rs11 and Rs44.50.
Trading volume suffered sharp setback at 215m shares from the previous 310m shares as losers held a modest lead over the gainers at 159 to 152, with 37 shares holding on to the last levels.
D.G. Khan Cement topped the list of actives, higher by Rs2.50 at Rs99.80 on 14m shares followed by WorldCall Telecom, firm by 95 paisa at Rs18.25 also on 14m shares and Lucky Cement, steady by 80 paisa at Rs123.05 on 13m shares.
OGDC, firm by five paisa at Rs120.90 on 12m shares, Pakistan Petroleum, higher by Rs1.75 at Rs251 on 8m shares, PTCL, lower by 40 paisa at Rs44.45 on 7m shares and Arif Habib Securities, higher by 55 paisa at Rs168.90 on 8m shares.
Other actives were led by Bosicor Pakistan, steady by 10 paisa on 10m shares, Nishat Mills, higher by Rs2.85 on 6m shares and TRG Pakistan, firm by five paisa also on 6m shares.
FORWARD COUNTER: MCB came in for strong support at the current lower level and was quoted higher by Rs13.51 at Rs378.51 on 7m shares, followed by National Bank, up by Rs1.34 at Rs246.35 on 5m shares and OGDC, lower 35 paisa at Rs120.05 on 5m shares.
OGDC November contract followed them, up by 19 paisa at Rs120.89 on 5m shares and Pakistan Petroleum, higher by Rs69 paisa at Rs252.89 on 4m shares.
DEFAULTER COMPANIES: Norrie Textiles led the list of actives on this counter, easy five paisa at Rs2.35 on 2.539m shares followed by Unity Modaraba, lower also by five paisa at Rs2.40 on 1.094m shares and Zeal Pak Cement, steady by five paisa at Rs4.60 on 1.030m shares.
Other actives were traded modestly either-way barring Japan Power, which came in for stray selling and ended lower by 10 paisa at Rs8.55 on 0.972m shares.