KARACHI, Jan 6: Stocks on Thursday remained in a bullish frame of mind as no one was in a mood to miss the rising market, which ensures quick gains even at the highly inflated levels. The KSE 100-share index rose by another 67.59 points to stay firm above the barrier of 6,300 at 6,353.27.
But beyond the boom conditions, there is a loud negative whispering about the sustained run-up. The big question being asked is "what next" or are there technical limits on the sustained run-up apparently above the mandate of the market.
The market's statistical position is fraught with high financial risks and wise among the bargain-hunters and speculators are advising restraint at least for a near-term.
The KSE 100-share index broke the barrier of 6,300 and finished with sharp rise of 67.59 points at 6,353.27, virtually racing towards its new chart point of 6,400. The market capital also rose by Rs21.260bn at Rs1,767.80, its new career-best level.
Bulk of the buying remained confined to the recent favourite, Nishat Mills, which has during the last couple of weeks has risen by Rs45. Currently, it is under squeeze from a leading foreign investor who along with some local investors seem to be in a mood to push it to its previous peak level of Rs120 plus.
A modest rise of 43 basis points in the cut-off yield on 6-month T-bills to 4.16 per cent went in favour of banks whose investment in it is fairly large and the persistent rise in their share values reflect this phenomenon, brokers said.
Leading bank shares, notably MCB, sister company of Nishat Mills, National Bank and Bank of Punjab were leading among them. "In highly overbought market, it appears to be a straight fight between the bulls and the bears and any blinking on the part of any of the contenders could well mean massive financial losses", analysts said.
Attempted bids by the bears to enforce the law of supply and demand have so far failed as bulls are not inclined to loosen their grip on the prevailing line, they said.
However, no one could deny the fact that massive correction is overdue and when it makes its debut is not clear as bulls are out to perform pretty above their mandate, they added.
But it would essentially lead to shakeout of an extra weight as basic fundamentals are positive and could keep the market in a good shape in future too. Plus signs dominated the list as some of the share posted sharp gains owing to a shortage of floating stock.
Atlas Honda, Pakistan Cables, Clariant Pakistan, AKD Securities, Arif Habib Securities, Bhanero Textiles, Fateh Textiles, and Shell Pakistan were leading, up by Rs14 to Rs27.50. Many others also rose sharply higher.
Losers were led by International Industries, Lakson Tobacco, Island Textiles, and Nestle MilkPak, off Rs8.50 to Rs22.95. Trading volume fell to 551m shares from the previous 736m shares as leading sellers kept to the sidelines but the advancing shares maintained a strong lead over the losing ones at 304 to 124, with 42 shares holding on to the last levels.
The most active list was topped by MCB, up by Rs4.60 at Rs66.05 on 66m shares followed by National Bank, higher by Rs2.75 at Rs84.15 on 46m shares, Nishat Mills, sharply higher by Rs6.40 at Rs92.05 on 46m shares, D.G.Khan Cement, firm by Rs1.60 at Rs56.45 on 37m shares and Sui Southern Gas, steady by Rs1.40 at Rs28.75 on 30m shares.
Other actives included PSO, up by Rs2.25 on 30m shares followed by PICIC Growth Fund, firm 85 paisa on 28m shares, OGDC, steady 15 paisa on 28m shares, Bank of Punjab, higher by one rupee also on 28m shares, and Pakistan Oilfields, higher by Rs3 on 24m shares.
FORWARD COUNTER: PPL came in for strong support and rose by Rs2.45 at Rs146.40 on 33m shares followed by Nishat Mills, higher by Rs6.45 at Rs92.55 on 11m shares, MCB, up by Rs4.60 at Rs66.50 on 8m shares and Sui Southern Gas, up by Rs1.20 at Rs28.85 on 7m shares.
DEFAULTER COS: Active trading was witnessed in the textile shares mostly at the higher levels in sympathy with their counterparts in the ready section where all finished with smart gains.
Crescent-Standard Bank again led the list of actives, up by 60 paisa at Rs14.85 on 549m shares followed by Awan Textiles, higher 55 paisa at Rs2.60 on 0.316m shares and Mukhtar Textiles, up by 65 paisa at Rs8.35 on 0.312m shares. Others were also actively traded.
DIVIDEND: Mitchell's Fruit Farms, cash 20 per cent, Husein Industries cash 20 per cent, Fazal Cloth Mills, bonus shares 20 per cent, right shares 50 per cent, Paramount Spinning, cash 10 per cent, Security Leasing, 136.4 per cent on preference shares, Gulistan Textiles, 7.5 per cent, Dawood Fibre, Baba Farid Sugar, Fecto Sugar, Shahmurad Sugar, Globe Textiles, Globe Textiles (O.E), and Landmark Spinning, all omitted for the financial year ended Sept 30, 2004.