KARACHI, May 28: Stocks on Friday staged a broad recovery as leading investors were back in the market and made extensive covering purchases on the blue chip counters aided by some "budgetary leaks".
The KSE 100-share index broke the barrier of 5,500 at 5,503, up 25.89 points.
The weekend rally could well prove a prelude of the pre-budget speculative buying and bargain-hunting as some of the "well-informed" brokers are rumoured to have found the cue about the sectors, which could be the chief beneficiaries of the new fiscal incentives and tax reliefs.
In a market parlance, even in normal trading sessions, weekend rallies always signal that the sailing during the next week will be fairly encouraging. The KSE 100-share index again breached through the barrier of 5,500 in the morning session and managed to sustain this level as leading base shares led to the market advance.
It was finally quoted around 5,502.89 as compared to 5,476.83 a day earlier after having fallen to 5,465 during the mid-week selling. It is expected to rise further during the pre-budget trading sessions as reports about duty concessions and tax relief's in the budget are pouring in each day from various sources.
A modest interim dividend of five per cent by PIAC, whose management has offered to disinvestment its five per cent stake, with a greenshoe option of an identical amount, could hardly be termed as a market mover, but it came at a time when investors will apply for its shares from June 7 to 9. It could be prelude to better performance in the years to come backed by current profit.
Its share value remained stable at around Rs24 against the premium price of Rs20 at which it will be sold to the prospective investors. Barring the cement sector, which showed unprecedented growth during the last couple of weeks on reports of both higher production and exports, others lacked aggressive support.
And added to reports of some management changes, notably the purchase of Saadi Cement and Pakland Cement by the Dewan group of companies. Some of the leading textile shares were, however, an exception as most of them followed the lead of cement shares on active short-covering aided by higher exports.
Even sharp increase in cotton prices, which are at a record high, could not check the investor enthusiasm for them. Some of them have already announced higher interims.
Javed Omer, EFU Life, Lakson Tobacco and Siemens Pakistan, which rose by Rs12.20, 13, 12.75 and Rs18.50, respectively, were among the top gainers followed by Babri Cotton, Indus Dyeing, National Refinery, Haroon Oils, and Atlas Honda, which rose by Rs3.20 to Rs5.
Losers were led by New Jubilee Insurance, Gatron Industries, Noon Sugar, Fateh Textiles, PSO, Pakistan Cables, Sitara Chemical and Clariant Pakistan, off by Rs2.40 to Rs6.
Trading volume rose to 472m shares from the previous 459 shares a day earlier, but gainers maintained a strong lead over the losers at 260 to 156, with 37 shares holding on to the last levels.
Fauji Cement led the list of actives for the third consecutive session, firm by 10 paisa at Rs18.50 on 51m shares followed by Dewan Salman, higher by Rs1.70 at Rs26.95 on 46m shares, Maple Leaf Cement, steady 50 paisa at Rs46.60 on 34m shares, Nishat Mills, up 60 paisa at Rs55.70 on 28m shares, and Sui Northern Gas, up 30 paisa at Rs70.60 on 25m shares.
Other actives were led by D.G. Khan Cement, off 70 paisa on 23m shares, MCB, up 75 paisa on 18m shares, Hub-Power, easy 20 paisa also on 16m shares and PTCL, off 25 paisa on 14m shares.
FORWARD COUNTER: PTCL came in for active selling, off 27 paisa at Rs43.06 on 7m shares followed by FF Bin Qasim, steady by five paisa at Rs19.95 on 6m shares, Hub-Power, lower 20 paisa at Rs33.75 on 5m shares, Bank Alfalah, up 25 paisa at Rs66.50 on 4m shares and Pak PTA, higher by Rs1.03 at Rs17 also on 4m shares.
DEFAULTER COS: Much of the buying interest remained confined to the modaraba section as a section of investors picked up low-priced ones for capital gains. Unicap Modaraba was leading among them, up 75 paisa at Rs3.15 on 2.349m shares followed by Unity Modaraba, higher by 45 paisa at Rs2.25on 1.457m shares and Schon Modaraba, up 20 paisa at Rs195 on 0.678m shares.
Dandot Cement was marked down by 10 paisa at Rs11.15 on 0.464m shares. Some others were also actively traded.