KARACHI, Jan 21: Stocks were back on the rails on Wednesday as both financial institutions and retailers covered positions at the lower levels after an imminent feared crisis owing to higher badla rates was averted.
All the sectors, notably the low-priced ones participated in the run-up as no one was inclined to miss the bandwagon and rode it willingly to be a part of market's record-setting performance in the sessions to come.
After turning in volatile performance, the KSE 100-share index again breached through the psychological barrier of 4,700 in the morning session and finished above it after hitting the day's highest and the lowest at 4,724 and 4,687 respectively before finally ending around 4,722.06, up 34.33 points over the previous close of 4,688.38.
Total market capitalization also showed an impressive increase of Rs14.429bn at Rs1,239.122bn thanks active credible performance of the blue chips. "If it could sustain this crucial level, investors are looking well beyond this, the immediate target being 4,800 and long-term 5,000", says a leading broker adding as "the events are unfolding both the targets not appeared that ambitious".
But some others claimed it has already crossed the rubicon and now it could rise to any highs on the strength of sustaining factors. The market advance was led by most of the pivotals after easing of the carryover rates from the overnight peak level of 20 per cent to 16 per cent and those who had indulged in panic selling covered their positions at the lower levels.
"Being still in an overbought position, the market needs further correction but as basic fundamentals are bullish no one is inclined to sell even in part their holding", analysts said adding "a modest correction at the current peak level could significantly add to its inherent strength thanks to consolidation process".
Sugar and textile mills whose board meetings are due during the current and the next month for the year ended September 2003, notably the latter is expected to come out with good payouts and are being actively traded. Some of them had already announced good dividend.
Auto shares, most of whom had made hefty profits and massive increase in sales are expected to follow them, keeping the broader market in a good shape in the sessions to come.
Bulk of the covering purchases were confined to Sui Northern Gas, National Bank, Pakistan Oilfields, OGDC and some others, which showed good gains, while leading shares, notably PSO, Engro Chemical, ICP SEMF and Pakistan Container Terminal, eased on mid-session profit-selling at the higher levels.
Prominent gainers were led by Millat Tractors, Atlas Honda and Gatron Industries, which posted gains ranging from Rs7.60 to Rs8.50 followed by Janana De Malucho Textiles, Atlas Battery, HinoPak Motors, Pakistan Oilfields, Mehmood Textiles, Masood Textiles Honda Atlas, Dewan Motors, which rose by Rs2.10 to Rs4.
Losers were led by Rafhan Maize, Clover Pakistan, and Nestle MilkPak, which suffered fall ranging from Rs5 to Rs11.95. Other prominent losers were Treet Corporation, Parke-Davis, Siemens Pakistan, and Pakistan Refinery, off Rs4 to Rs5.50.
Trading volume rose to 409m shares from the previous 308m shares but the advancing shares forced a strong lead over the losing ones at 236 to 146, with 38 shares holding on to the last levels.
National Bank topped the list of most actives, up Rs2.65 at Rs57.80 on rumours of higher dividend on 47m shares followed by OGDC, higher by Rs1.55 at Rs53.10 also on 47m shares, Dewan Motors, up Rs2.50 at Rs38.85 on 42m shares, D.G.Khan Cement, firm by 85 paisa at Rs46.55 on 40m shares and PSO, off Rs1.95 at Rs288.75 on 21m shares.
Other actives were led by Sui Northern Gas, up by Rs1.90 on 20m shares, Lucky Cement, firm 60 paisa on 19m shares, PTCL, steady by five paisa also on 19m shares, FF Bin Qasim, up 10 paisa on 15m shares and Maple Leaf Cement, firm by 10 paisa on 13m shares.
FORWARD COUNTER: PSO came in for active selling at the higher levels and fell by Rs2.50 at Rs288.50 on 4m shares, followed by FF Bin Qasim, unchanged at Rs19.30 on 3m shares, PTCL, up nominally one paisa at Rs37.61 also on 3m shares, Pakistan Capital Market Fund, unchanged at Rs11.90 on 2.969m shares and Hub-Power firm by 10 paisa at Rs38.80 on 2.852m shares.
DEFAULTER COMPANIES: Active trading was witnessed on this counter as investors played on both sides of the fence amid alternate bouts of buying and selling.
Norrie Textiles was actively traded, up Rs1.50 at Rs2.80 on 0.802m shares followed by Industrial Capital Modaraba, firm by 10 paisa at Rs1.80 on 0.462m shares and Nazir Cotton, higher by 65 paisa at Rs3.65 on 0.286m shares, Some others were also actively traded on the higher side.
BOARD MEETINGS:IBL Modaraba, on Jan 23, Glamour Textiles, Data Textiles, Fazal Cloth on Jan 26,Mirpurkahs Sugar, Shahtaj Sugar on Jan 27, Regent Textiles, Hub-Power, Company, Colgate Palmolive Pakistan on Jan 28,Aventis on Jan 30, and National Refinery on Feb 9.