KARACHI, June 8: Stocks on Tuesday maintained their uppish leaning and managed to finish with an extended gain despite profit-selling in the cement sector at the highly inflated levels.
The KSE index ended with a fresh rise of 33.32 points at 45,450.05.
The resignation of the Sindh chief minister appears to be a non-event as investors generally followed the market's technical demands rather than the political events. However, it reflects that the government now means business in Sindh sans political consensus.
Each day reports from Islamabad about the fresh incentives and duty cut are pouring in but investors are not inclined to be carried away by just rumours and have decided to await the budget.
"The new federal budget for the year 2004-5 is just four days away and in-between are three trading sessions," says a leading analysts but "I doubt the usual pre-budget speculative buying has made its debut on any of the counters."And that reflects that reports and rumours are just to net in the fresh clientele in the share business and they have no relevance to the "legendary budgetary leaks" coming from the well-informed sources within the ruling elite, he adds.
Gas shares were, however, an exception, which came in for active support as they have been allowed to increase rates from July 1, but on the other hand cement shares, which have assumed the role of trend-setters on higher exports and excise duty cut ran into profit-selling. Other pivotals, notably National Bank came in for active support and rose further higher.
Al-Ghazi Tractors came in for active selling followed by rumours that the government may allow imports at a reduced duty rates but on the other hand Indus Motors and Pak-Suzuki Motors rose sharply on rumours that budget may remained silent on the issue of import of reconditioned cars.
There was no immediate either-way reaction to the resignation of the Sindh chief minister, it has certainly reinforced investor perception that the central government intends to restore peace in the commercial hub of Pakistan.
The incumbent has not yet been named but indications are that it will be from the ruling elite, having support from the centre. But how he would establish the government writ in the troubled city will have a positive impact on the stock trading.
The KSE 100-share index added another 33.32 points to the overnight gain and was last quoted around 5,450.05 as against 5,416.73 a day earlier as leading base shares finished further higher.
After opening higher, it reacted from early highs on active profit-selling in some of the pivotals and cement shares but late covering purchases at the lower levels, allowing it to finish with an extended gain.
Prominent gainers were led by Haroon Oils, Merit Packaging, Pak-Suzuki Motors and Gatron Industries, which posted gains ranging between Rs5.20 to Rs11. DM Textiles, Indus Motors, International Industries, Lakson Tobacco, Indus Dyeing, Babri Cotton and Lawrencepur Woollen followed them, up by Rs3 to Rs4.50.
Losses on the other hand were fractional barring Javed Omer, which suffered sharp fall of Rs21 followed by Clariant Pakistan, Thal Industries, National Refinery, BOC Pakistan and Fazal Textiles, off Rs3 to Rs4.50.
Trading volume rose to 436m shares from the previous 395m shares as the advancing shares maintained a modest lead at 186 to 176, with 58 shares holding on to the last levels. The notable feature was that there was no massive activity in single share but bulk of the turnover was equally shared by the most actives.
Fauji Cement topped the list of actives, lower 15 paisa at Rs19.30 on 39m shares followed by National Bank, sharply higher by Rs2.25 at Rs66.05 on 38m shares, Sui Southern Gas, up Rs1.50 at Rs34.75 also on 38m shares, DG Khan Cement, lower 35 paisa at Rs62 on 33m shares and PTCL, up 65 paisa at Rs42.90 on 30m shares.
Other actives were led by FF Bin Qasim, easy five paisa on 29m shares, Pak PTA, up Rs1.50 on 20m shares, Nishat Mills, higher by Rs1.90 on 17m shares, Sui Northern Gas, up 95 paisa also on 17m shares, and OGDC, unchanged on 15m shares.
FORWARD COUNTER: PTCL came in for renewed support and rose by 60 paisa at Rs43 on 7m shares, followed by Pak PTA, higher by Rs1.50 at Rs18.20 on 6m shares, on reports of higher earnings, Bank Al-Falah, firm by 20 paisa at Rs61.35 on 5m shares, FF Bin Qasim, steady five paisa at Rs21.20 on 4m shares and Hub-Power, lower 25 paisa at Rs33.30 also on 4m shares.
Engro Chemical, Sui Northern, ICI Pakistan and PSO also attracted good support and closed with gains ranging from one rupee to Rs1.80.
DEFAULTER COS: Active trading was witnessed in some of the current favourites under the lead of Biafo Industries, up Rs1.50 at Rs17.80 on 2.442m shares followed by Dandot Cement, firm by 15 paisa at Rs16.65 on 1.788m shares. Standard Bank accounted for 0.649m shares, up 40 paisa at Rs.10.65.