KARACHI, March 4: The KSE 100-share on Friday again raced towards its new target of 9,000 points followed by a massive foreign buying in PTCL triggered by positive developments on its early privatization, analysts said. The index added another 297 points to the overnight total.
Both PTCL and OGDCL, being under persistent speculative squeeze over the last couple of sessions, again aided the index to seek new peak levels on the strength of their heavy weightage of 36 per cent in the index. Broader market, however, did not follow the general run-up and was a bit weak.
An idea of heavy buying in leading base shares, notably PTCL and OGDC may well be witnessed from the fact that the KSE 100-share index overnight's single-session gain was surpassed, as it rose by another 296.97 points (overnight 290.59 points) at 8,792.70, reflecting the breach of another two barriers. At one stage, it also broke the barrier of 8,800 at 8,802.45.
"The goal of 9,000 points now appears to be not that elusive as it is only 200 points behind its target," brokers said. "The next week may witness new records, both in terms of index level and price flare-up."
While on the other hand, renewed heavy covering purchases in leading energy shares, notably OGDCL and PSO followed by National Bank reinforced investors' perceptions that the talk of massive shakeout at least for the near-term appears to be a remote possibility.
"News of sell-off of NIT and PTCL have given a credible support to those speculators, punters and some institutional traders who were wavering after the index broke the barrier of 8,000," analysts said and added: "But now they are pretty sure and other wave of buying is just around."
The weekend massive rally followed by heavy volumes in pivotals indicated that both the general investors and institutional traders are in no mood to look back and vowed to sustain the run-up.
According to the Privatization Commission, a technical committee would meet on March 12 to evaluate 10 EoIs submitted to it, and indications were that all were expected to pre-qualify for the PTCL bidding to be held before June this year.
According to official sources, NIT would be sliced into five units, out of which two would be given to those banks which have major shareholding in it and remaining three would be sold to general investors.
National Bank, Bank of Punjab and Faysal Bank will be chief beneficiaries owing to their shareholding in NIT. The offered price to the banks is Rs13.70, as compared to its ruling rate of Rs49.90 and Rs48.15 for sale and purchase, respectively.
Prominent gainers were led by PSO, PPL, Bank of Punjab, Glaxo-SKF, United Sugar, OGDCL, Al-Ghazi Tractors, and Nishat Chunian, which posted fresh gains ranging from Rs6 to Rs13.20.
Losers included National Refinery, Rafhan Maize, Treet Corporation, AKD Securities, and Siemens Pakistan, off Rs9 to Rs32.55, the largest decline being in Siemens Pakistan, while Dawood Lawrence, Dawood Hercules, Clariant Pakistan, Pak-Suzuki Motors, Atlas Honda and HinoPak Motors followed them, off Rs4 to Rs8.
Trading volume rose to 850m shares from the previous 601m, as gainers again held at comfortable lead over losers at 184 to 147, with 39 shares holding on to the last levels.
PTCL led list of most actives, higher by Rs5.30 at Rs76.55 on 389m shares, followed by OGDCL, up Rs9.55 at Rs137.20 on 119m shares, PSO, higher by Rs7.70 at Rs436,50 on 46m shares, Bank of Punjab, up Rs6.95 at Rs106.95 also on 46m shares, and National Bank, firm Rs2.70 at Rs144.30 on 45m shares.
Other actives were led by DG Khan Cement, firm by 95 paisa on 25m shares, Pakistan Oilfields, off Rs2.40 on 19m shares, Fauji Fertilizer Bin Qasim, unchanged also on 19m shares, TRG Pakistan, up Rs1.20 on 17m shares and Fauji cement, lower 20 paisa on 16m shares.
FORWARD COUNTER: PTCL was also massively traded on this counter, up Rs5.45 at Rs78.15 on 167m shares followed by PPL, higher Rs6.45 at Rs277.70 on 119m shares, OGDCL, sharply higher by Rs9.90 at Rs142.35 on 86m shares, Bank of Punjab, up Rs7.45 at Rs107.30 on 16m shares and National Bank, higher by Rs3.05 at Rs149 on 14m shares. Others also rose on light volume.
DEFAULTER COS: Mukhtar Textiles led the list of actives, up 65 paisa at Rs0.660m shares followed by Crescent Standard Bank, up 55 paisa at Rs15.50 on 0.119m shares.
DIVIDEND: Rafhan Best foods, final 50 per cent (An interim of the same amount already paid); Crescent Textiles, cash 10 per cent; Unilever Pakistan, final 160 per cent; and Meezan Bank, nil.