KARACHI, Dec 7: The KSE 100-share index on Tuesday maintained its upward drive as leading base shares came in for strong buying under the lead of PTCL and some other prominent base shares, lifting it up by another 43 points at its new peak level of 5,675.79.
Fresh heavy buying in bank shares amid predictions of higher cash payouts and bonus shares again featured the trading as the index posted a fresh robust rise of 42.66 points to hit its new career-best level in a briskly traded session. The massive sell-off related buying in PTCL, being on the leading base shares, was one of the chief supporting factors behind its renewed run-up.
The upturn is being sustained by the positive market factors rather than any outside support as investors are not inclined to miss an attractive bait of both capital gains and higher returns on their investment.
"During the last two sessions, it has risen by more than 100 points, an outstanding performance, reflecting that the investors are literally following the corporate earning reports rather than the heating up of the political scenario," brokers said.
Heavy buying in bank and fertilizer shares amid predictions of higher return on investment both in the form of cash dividend and bonus shares seems to have triggered fresh buying in them even at the highly inflated levels.
But the most interesting feature of the current run-up is that it is also being strongly supported by higher dividend and bonus shares by the hereto neglected and terribly sick textile sector. Most of them, including its weaker links, are coming out with both cash dividend and bonus shares, giving pleasant surprises to the analysts.
"By virtue of its size on the listed counter, higher export, cheaper lint prices and liberal official incentives, this sector has more than one reasons to be back on the rails and lead to the market advance," says a leading analyst, adding "that is perhaps why investors are in a buoyant mood."
Plus signs again dominated the list, major gainers being Berger Paints, Colgate Pakistan, Lakson Tobacco and Wyeth Pakistan, up Rs10.10 to Rs25. Other good gainers were Engro Chemical, Pakistan Cables, Dawood Lawrencepur, Siemens Pakistan, Clariant Pakistan, Noon Pakistan, Treet Corporation, Sitara Chemicals and Artistic Denim, which posted gains ranging from Rs4 to Rs9.45.
Losers were led by Blessed Textiles, Sapphire Textiles, Aventis, Mitchell's Fruits, Grays of Cambridge and Shell Pakistan, which suffered fall ranging from Rs2 to Rs7.50.
Trading volume expanded to 365m shares from the previous 291m shares as gainers maintained a strong lead over losers at 216 to 162, with 62 shares holding on to the last levels.
PTCL topped the list of most actives, up 85 paisa at Rs41.55 on 84m shares, followed by National Bank, higher by Rs1.10 at Rs74.75 on 39m shares, Hub-Power, steady by five paisa at Rs31.10 on 19m shares, PSO, higher by one rupee at Rs271.25 on 17m shares and Union Bank, new entrant in the active list, up Rs2.40 on the strength of its higher profits, also on 17m shares.
Other actives included Fauji Fertilizer Bin Qasim, unchanged on 15m shares, Engro Chemical, sharply higher by Rs3.85 also on 15m shares, PICIC Growth Fund, easy five paisa on 12m shares, Bank of Punjab, steady five paisa on 11m shares and MCB (ex-dividend), up 80 paisa on 10m shares.
FORWARD COUNTER: PPL came in for an active short-covering at the lower levels and rose by Rs1.05 at Rs122.55 on 13m shares followed by Fauji Fertilizer Bin Qasim, easy five paisa at Rs24.90 on 11m shares, PTCL, up 80 paisa at Rs41.65 on 10m shares.
Engro Chemical also came in for active support on reports of higher interim earnings and rose by Rs3.65 at Rs114.45 on 6m shares and PSO, higher by 95 paisa at Rs271.45 on 5m shares.
DEFAULTER COS: Crescent Standard Bank led the list of actives, up 30 paisa at Rs10.75 on 1.176m shares followed by Mukhtar Textiles, higher 50 paisa at Rs6.20 on 0.159m shares and National Asset Leasing, up 30 paisa at Rs3.30 on 0.111m shares. Some others were also actively traded on the higher side in sympathy with price flare-up on the ready counter.
DIVIDEND: Kohinoor Weaving, cash 10 per cent, bonus shares of an identical amount; Shafiq Textiles, cash 10 per cent; Pakistan International Container Terminal, right shares at 18.80 per cent and 28.25 per cent on preference shares; Southern Electric Power, bonus shares at 10 per cent; Gadoon Textiles, cash 25 per cent; Towllers and Mukhtar Textiles, nil.
BOARD MEETINGS: Pakland Cement, Saadi Cement, Shadman Cotton, Nadeem Textiles, JWD Sugar Mills, Sajjad Textiles, Apollo Textiles, on Dec 9; Khurshid Spinning on Dec 10; Haseeb Waqas Sugar, on Dec 13.