KARACHI, Aug 20: Stocks on Friday shrugged off the overnight easiness and staged a smart rally aided by active short-covering in the energy shares, lifting the KSE index well above the barrier of 5,400 at 5,409.05 points.
Analyst perceptions that the current record increase in the world oil prices could well mean massive inventory gains for the leading energy shares, notably PSO, Shell Pakistan, Pakistan and National refineries and some others, which may be ploughed back in the form of higher pay outs triggered active buying in them.
PSO, Shell Pakistan, Pakistan Refinery and National Refinery posted gains of Rs4.55, Rs5.05, Rs9.50 and Rs10 respectively amid active ready off take even at the higher levels.
"I don't call it a belated bullish market reaction to the election victory of Shaukat Aziz and as future prime minister", says a leading broker "but it could be one of the supporting factors behind the weekend snap rally as he had a long association with the bourses and has introduced many useful financial reforms during the last four years.
The KSE 100-shares again crossed the barrier of 5,400 points and was last quoted at 5,409.05 as compared to overnight's 5,377.71, up 31.34 points. Most of the leading base shares, which form the basis of the KSE index including OGDC belong to the energy sector and perception of higher earnings is well reflected in the steep increase in the index. OGDC alone holds a weight age of 21 per cent in the index.
All the leading energy shares, notably Shell Pakistan, which also announced a record dividend of 285 per cent, OGDC, PSO and National Refinery came in for strong support owing inventory gains because of higher world oil prices.
Analysts said apart from the energy shares other sectors also came in for active support amid reports that the sailing on the stock market may be more smooth after the new set up of economic wizards takes over under the lead of new prime minister.
All the sectors participated in the market run-up, notably those whose board meetings are due during the next couple of days are expected to announce higher pay outs. Leading gainers were led by Arif Habib Securities, Reckitt & Benckiser, Pakistan Cables, and Nestle MilkPak, which rose by Rs7.10 to Rs19.95.
Other good gainers included Pakistan Engineering, Abbott Lab, Aventis, Sitara Chemical, Pakistan Services, Lakson Tobacco and Fazal Textiles, which posted gains ranging from Rs4 to Rs6.75. Losers were led by Dawood Hercules, Atlas Battery, Haroon Oils, Shahtaj Sugar, Pakistan Resource Insurance, Jahangir Siddiqui Bank and BOC Pakistan, off Rs3 to Rs4.90.
Trading volume fell to 191m shares from the previous 240m shares in the absence of leading sellers as gainers forced a strong lead over the losers at 170 to 136, with 57 shares holding on to the last levels.
Fauji Fertilizer Bin Qasim topped the list of actives, up by 55 paisa at Rs22.65 on 29m shares followed by OGDC, higher by 30 paisa at Rs66.55 on 15m shares, Askari Bank, up by Rs1.10 at Rs80.55 on 14m shares, Maple Leaf Cement, easy 15 paisa at Rs37.55 on 13m shares and D.G.Khan Cement, higher by 55 paisa at Rs56.55 on 12m shares.
Other actives were led by PSO, higher by Rs4.55 on 11m shares, National Bank, easy five paisa on 10m shares, Pakistan Container Terminal, steady by 10 paisa on 7m shares, Bank of Punjab, unchanged on 7m shares and Adamjee Insurance, off Rs2.60 also on 7m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives, up by 65 paisa at Rs108.65 on 10m shares followed by PSO, higher by Rs3.45 at Rs261.70 on 4m shares, OGDC, up by 35 paisa at Rs66.65 on 3m shares, Maple Leaf Cement, easy 10 paisa at Rs37.75 on also on 3m shares and F.F.Bin Qasim, up 50 paisa at Rs22.70 on 3m shares. Others were modestly traded.
DEFAULTER COS: Crescent-Standard Chartered Bank again came in for active support and rose by 15 paisa at Rs11 on 0.240m shares followed by Biafo Industries, higher by Rs1.20 at Rs12.30 on 0.202m shares.
DIVIDEND: Shell Pakistan, final cash at the rate of 285 per cent plus interim of 65 per cent already paid, Maple Leaf Cement, cash 15 per cent, Sigma Leasing, cash final three per cent.
BOARD MEETINGS: Crescent Commercial Bank, on Aug 25, Pakistan Petroleum, Bolan Bank, Metropolitan Life Assurance, Universal Insurance, PIAC, and Reliance Insurance on Aug 26, East-West Insurance, on Aug 27.