KARACHI, Nov 24: Stocks on Wednesday maintained upward drive on strong buying in energy shares, notably PPL fuelled by reports of new oil finds and perceptions of higher payouts.
The overnight run-up was, therefore, extended on active follow-up support as institutional traders provided the much-needed lead to the shaky bargain-hunters after having resumed new account buying.
The KSE 100-share index posted a fresh gain of 18.73 points at 5,533.22 as compared to previous 5,514.49, reflecting the strength of OGDCL and PPL sans PTCL. Higher corporate news, notably bonus shares by some of the hereto neglected textile shares in addition to cash dividend and a record final dividend of 300 per cent(200 per cent interim already paid) by Siemens Pakistan were some of the most immediate stimulants, generating a lot of new buying on selected counters.
"But the current moves of political reconciliation after the release of Asif Zardari, husband of former Prime Minister Benazir Bhutto, seemed to have changed the direction of investor perceptions about the future share outlook at least for the near-term," says a leading stock analyst.
On the political front, the prime minister's Indian visit has also raised hopes that current peace overtures could reach final settlements on some of the core issues between the two neighbours, he said.
However, there is no immediate negative fallout of the opposition's proposed anti-uniform drive as the market is expected to follow the trend of campaign and its intensity in due course. But most leading brokers predict the sailing on the stock market is expected to remain pretty smooth, some negative flutters here and there notwithstanding, as it has learnt to follow the corporate trend rather than being discouraged by the political agitation.
"An attractive bait of sell-off of mega state-owned units, including PTCL and Kot Addu Power plant, will not allow investors to sit idle on the sidelines," brokers said, adding that "investors' interest is expected to sustain by developments on the privatisation front."
Plus signs dominated the list under the lead of Javed Omer, Gatron Industries, Ferozsons Lab, Grays of Cambridge, Shell Pakistan, Treet Corporation and Siemens Pakistan, up by Rs8 to Rs19.85, fresh largest rise of Rs20.65 being in Siemens Pakistan in post-dividend trading.
Among the energy shares, Pakistan Refinery, Attock Refinery, Pakistan Oilfields, which rose by Rs3.25 to Rs7.20, were leading. But the largest rise of Rs52.50 was noted in Parke-Davis without any deal.
Losses on the other hand were fractional barring Habib Sugar, Gillette Pakistan, Faisal Spinning, Dewan Textiles, BOC Pakistan, EFU Life and Unilever Pakistan, which suffered fall ranging from Rs2 to Rs14.
Trading volume rose to 261m shares from the previous 228m shares as gainers maintained a strong lead over losers at 238 to 134, with 41 shares holding on to the last levels.
Fauji Fertilizer Bin Qasim again topped the list of actives, up 70 paisa at Rs24 on 83m shares followed by OGDCL, up 30 paisa at Rs66.50 on 26m shares, PPL, higher by Rs2 at Rs121.65 on 17m shares, Bank of Punjab, firm by 35 paisa at Rs61.10 on 12m shares, PTCL, lower 20 paisa at Rs40.60 on 11m shares and PSO, higher by Rs1.40 at Rs264.30 on 8m shares.
Other actives included Engro Chemical, up 50 paisa on 10m shares, Pakistan Oilfields, higher by Rs3.25 also on 10m shares, PICIC Growth Fund, firm by 75 paisa on 9m shares, PSO, up Rs1.40 on 8m shares and Sui Northern Gas, firm by five paisa on 6m shares.
FORWARD COUNTER: PPL, both the November and December settlements, came in for strong support on reports of new oil and gas finds, and rose by Rs2 and Rs1.83 at Rs121.65 and Rs122.70 on 17m and 14m shares, respectively, followed by Fauji Fertilizer Bin Qasim, higher by 62 and 70 paisa, respectively, on 14m and 9m shares.
OGDCL was marked up by 35 paisa at Rs65.95, while Pakistan Oilfields showed smart gain and so did some others.
DEFAULTER COS: Taxila Engineering again came in for modest support and rose by 50 paisa at Rs14.25 on 0.187m shares followed by Quice Foods, easy five paisa at Rs3.95 on 0.169m shares and Crescent-Standard Bank, lower 15 paisa at Rs10.25 on 0.139m shares. Others were modestly traded.
DIVIDEND: BOC Pakistan, final cash 100 per cent, interim 30 per cent already paid.