KARACHI, Oct 13: Stocks on Wednesday remained in a bullish frame of mind as investors were not inclined to take even a technical breather in an overbought market amid predictions of fresh increase in share values.
However, the market witnessed a major shift in the investor buying strategy in new of portfolio building, notable feature was that some untraditional inactives assumed the role of most active scrips under the lead of Nishat Mills on reports of higher earnings and Fauji Fertilizer Bin Qasim and some others.
Stocks, therefore, rose further higher across the board as investors were not inclined to look back, encouraged by the strength of the energy sector in the backdrop of a record rise in world oil prices.
The other contributory aiding factor was reports of orderly phasing out of the massive carryover volume, allaying fears of reversal of the current run-up under the weight of fresh float, brokers said.
The KSE 100-share index, therefore, maintained its upward drive to its next chart point of 5,500 and analysts predict it could hit during the current week after a minor technical correction, the market being in an overbought position.
It finally ended around 5,445.50, up 24.43 points as compared to 5,421.07 points at day earlier, reflecting the strength of the leading base shares. The market advance was again led by fresh heavy buying in the energy shares under the lead of refineries and marketing companies on the perception of a inventory gains owing to steep increase in world prices, brokers said.
Analysts said there was a strong evidence of spill-over demand from the real estate business followed by recent State Bank ban on credits to speculators. Bank has been directed to extend loan to only residential purposes.
"Property prices, which have soared to new highs during the last two months owing to the cheaper bank credit lines to the speculators are now coming down," they said and a "good part of it is being re-ploughed in the share business."
There may be some other contributory positive factors sustaining the current upturn and about 200 points rise in the index, but largely it owes its strength to huge funds trickling back to the share market, they said.
Reports from the corporate sector are also pretty encouraging, which did not allow investors to indulge in an undue selling as an attractive bait of capital appreciation kept them in the arena.
Plus signs again dominated the list, major gainers being Millat Tractors, Lakson Tobacco, Unilever Pakistan, National Refinery and AKD Securities, which posted fresh gains ranging from Rs10 to Rs21.10. Other notable gainers included Aventis, National Foods, Shezan International, Colgate Pakistan, Ferozsons Lab and Pakistan Refinery, up by Rs5 to Rs9.30.
Losers were led by Bata Pakistan, Sapphire Fibre, Pakistan Engineering, Al-Ghazi Tractors, Siemens Pakistan, Packages, EFU Life and Wyeth Pakistan, off Rs3.30 to Rs10.
Trading volume suffered a modest decline at 338m shares from the previous 359m shares as gainers maintained a strong lead over the losers at 199 to 151, with 45 shares holding on to the last levels.
Nishat Mills topped the list of actives, up Rs2.10 at Rs53 on 49m shares followed by market talk of higher interim dividend, PICIC Growth Fund, higher Rs2.45 at Rs48.40 on 28m shares, Fauji Fertilizer Bin Qasim, lower 25 paisa at Rs21.20 on 24m shares, National Bank, steady by 10 paisa at Rs71.80 on 18m shares and Askari Bank, up 65 paisa at Rs88.90 on 17m shares.
Other actives were led by Union Bank (ex-bonus) up Rs1.20 on 17m shares followed by Pak PTA, firm by 45 paisa on 16m shares, Bank of Punjab, steady 10 paisa on 15m shares, Hub-Power, lower 10 paisa on 14m shares and Sui Northern Gas, Easy 10 paisa on 13m shares.
FORWARD COUNTER: PPL led the list of actives on strong support, up Rs3.40 at Rs123 on 49m shares followed by OGDC, higher by 25 paisa at Rs65.95 on 17m shares, PTCL, steady five paisa at Rs40.60 on 13m shares, DG Khan Cement, lower 35 paisa at Rs52 on 7m shares and Hub-Power, easy 15 pasia at Rs30.05 on 6m shares.
DEFAULTER COS: Owing to active trading in the ready section, activity on this counter was selective in the absence of strong demand. However, Crescent Spinning and Redco came in for stray support and rose by 30 and 70 paisa at Rs4.55 and Rs5.85 on 0.140m and 0.210m shares respectively.