KARACHI, Oct 11: Stocks on Monday extended the previous week's run-up as investors were not inclined to take even a technical breather in an apparently overbought market and despite a good bit of profit-selling managed to finish with fresh gains.
However, fears of fresh float from the carryover market did worry some leading investors but analysts said there were reasons to believe it would be absorbed mostly at dips.
Trading was, therefore, resumed on a higher note as investors ignored the negative fallout of bomb attack on a Lahore mosque and mostly played to the tune of positive background news amid relatively slow trading.
The KSE 100-share index maintained its upward drive and finished with a fresh gain of 29.19 points at 5,372.13 after hitting the day's best level of 5,382.00. The weekend close was at 5,342.94.
The chief stimulating factor behind the extension of the weekend rally was said to be positive announcement from the management of Hub-Power claiming that its three generators, out of four each having capacity of 300mw, are now fully operational after repairs.
Its share value has been under pressure since May last when its three units developed technical faults one after other, reducing its power generation capacity to only 300mw, the total being 1,200mw.
"PTCL and Hub-Power set the market's upward trend despite the fact it was in an overbought position on some of the counters", analysts said adding "it could yield a couple of points on Tuesday but its direction appears to be on the higher side at least for the near-term".
The fact that investors are not worried over the negative developments on the external front reflects that they have chosen to go by the corporate dictates rather than following external depressants, they said.
That is perhaps why active selling by some of the institutional traders failed to check investors' enthusiasm about the future outlook of the share market and their will to go by it.
Energy shares, which have been in strong demand followed by reports of a record increase in world oil prices amid hopes of inventory and margin gains attracted profit-selling at the highly inflated levels, while on the other hand banking and fertilizer shares and some selected scrips on some other counters came in for active support and kept the market on the higher side.
Prominent gainers were led by Pakistan Refinery, Security Papers, EFU Life and AKD Securities, which posted gains ranging from Rs9.70 to Rs18.25. But the list was topped by Wyeth Pakistan, up by Rs70. The price flare-up was attributed to shortage of the floating stock.
Other leading gainers included Fazal Textiles, Mehmood Textiles, Shell Pakistan, Millat Tractors, Pakistan Cables, Atlas Battery, Berger Paints, National Foods, after several post-dividend lean sessions, and Clariant Pakistan, up ranging from Rs4 to Rs7.95.
Prominent losers were led by Javed Omer, Glaxo-SKF, Lakson Tobacco, Pakistan Engineering, Atlas Battery, IGI Insurance and Grays of Cambridge, off Rs2 to Rs16.05. Trading volume suffered a sharp contraction owing to the absence of leading bears and fell to 279m shares from the previous 427m shares but gainers maintained a strong lead over the losers at 190 to 151, with 58 shares holding on to the last levels.
Hub-Power topped the list of actives, up by 95 paisa at Rs29.90 on 28m shares followed by PTCL, higher by 85 paisa at Rs44.45 on 27m shares, National Bank, up by Re1 at Rs71.60 on 26m shares, Fauji Fertilizer Bin Qasim, lower 10 paisa at Rs21.15 on 25m shares and MCB, higher by Rs1.35 at Rs53.30 on 22m shares.
Other actives were led by Lucky Cement, higher by 75 paisa on 14m shares, ICI Pakistan, up by 90 paisa on 11m shares, Engro Chemical, higher by Rs3.55 on 10m shares followed by reports of possible supply of gas to produce fertilizer, Fauji Cement, lower 45 paisa on 9m shares and PSO, up by 60 paisa on 8m shares.
FORWARD COUNTER: PTCL, unlike its performance in the ready counter, came in for active selling and fell by 25 paisa at Rs40.05 on 11m shares followed by PPL, easy 20 paisa at Rs120.55 on 9m shares. But Hub-Power came in for strong support and up by Rs1.20 at Rs30 on 7m shares.
OGDC, fell by nine paisa at Rs65.15 on 5m shares, while Fauji Fertilizer Bin Qasim, lower five paisa at Rs21.20 on 3m shares. Others moved either-way.
DEFAULTER COS: Activity on this counter was relatively slow owing to brisk trading on the ready counter. As a result, barring Progressive Insurance and Mehran Jute, which rose by 50 and 60 paisa at Rs4 and Rs3.40 on 0.370m and 0.169m shares, all others turned in modest volumes.
BOARD MEETINGS: Platinum Insurance, on Oct 13, Habib ADM (former Habib Arkady), on Oct 14, Javed Omer Vohra & Co, Dawood Hercules, Haydari Construction, NDLC-IFIC Bank, Habib Insurance, Fayzan Modaraba, Ecopack, on Oct 15, Otsuka Pakistan, on Oct 19, Crescent Leasing, HinoPak Motors, on Oct 21, Lakson Tobacco on Oct 20, Clover Pakistan, Colgate Pakistan on Oct 23 and IGI Insurance on Oct 26.