KARACHI, March 7: The KSE 100-share index on Monday briefly broke through the barrier of 9,000 at 9,007.49 followed by fresh massive buying in PTCL and OGDC, but the index failed to sustain it on late-selling at the inflated levels.
Analysts said the reversal was based on some technical factors as leading bulls were not inclined to go for a "big kill" just in one go, but bulls were determined to push it above this level after consolidating positions even on Tuesday.
After early rising by well over 200 points, it finally ended with a fresh rise of 69.79 points at 8,863.48 as compared to 8,793.69 at the weekend session. Reports of heavy foreign buying in PTCL ahead of its privatization continued to evoke strong sympathetic support in oil shares, notably OGDC, PPL, PSO and some others.
It was in this background that a 10-rupee share of recently floated Attock Petroleum came on the board at its face but on strong support steadily rose to day's peak level of Rs240, well ahead of other giants including PPL and OGDC. It ended around Rs214.10 on 1.674m shares.
The trio, OGDC, PSO and PTCL have a weight age of 48 per cent in the index and with the addition of PPL's about seven per cent next month, the weight age of the trio will rise to 55 per cent and could guide its direction under their own perceptions, brokers said.
That is perhaps why the broader market is terribly weak for more than a week but heavy buying in the trio continued to push the index to new highs each session. It has created doubts in the minds of many investors "whether or not the price flare-up is genuine", they said.
"An attractive bait of sell-off of some mega state-owned units is still there", said a leading analyst commenting on the market's meteoric rise from the index level of 6,000 to 9,000 "until June when the sell-off of major units is completed then the future direction of the market would be guided by the local factors".
But some leading analysts predict the market has risen without the support of the broader market and needs a technical correction and it appears difficult to pull it down sharply, but the possibility of clipping of a few hundred points here and there could not be ruled out.
Most of the corporate announcements from the leading sectors barring some banks and energy shares have already played their role and now cement sector has assumed the role of a trend-setter under the lead of D.G.Khan and Fauji Cement.
Minus signs again dominated the list under the lead of Artistic Denim, Pakistan Oilfields, PPL, Aventis, PNSC, Noon Sugar, and Glaxo-SKF, which suffered fall ranging from Rs5 to Rs7.35, the largest decline of Rs13.90, Rs18.45 and Rs21.75 being in Lakson Tobacco, Siemens Pakistan and AKD Securities.
Advancing shares were led by Attock Refinery, Pakistan Refinery, Mari Gas, Blessed Textiles D.G. Khan Cement, Pakistan Engineering, and International Industries, which posted gains ranging from Rs5 to Rs9.20. Attock Refinery and National Refinery being the top gainers up by Rs13.00 and Rs15.
Trading volume fell to 767m shares from the previous 850m shares as losers maintained a strong lead over the gainers at 195 to 152, with 49 shares holding on to the last levels.
The most active list was again topped by PTCL, sharply higher by Rs2.95 at Rs79.50 on 250m shares followed by OGDC, higher by Rs1.65 at Rs138.50 on 171m shares, D.G.Khan Cement, up by Rs5.15 at Rs73.85 on 50m shares, PSO, firm by Rs3.50 at Rs440 on 49m shares and Fauji Cement, higher by Rs1.20 at Rs20 on 27m shares.
Other actives, were led by Lucky Cement, higher by Rs350 on 24m shares, Bank of Punjab, easy Rs1.95 on 22m shares, National Bank, off Rs1.15 on 20m shares, TRG Pakistan, lower 30 paisa on 17m shares and Pak PTA, up by 35 paisa on 15m shares.
FORWRAD COUNTER: PTCL came in for renewed demand and rose by Rs2.30 at Rs80.54 on 114m shares, followed by OGDC, up by Rs1.30 at Rs143.65 on 97m shares and PPL, off Rs9.20 at Rs268.50 on 42m shares. Others also rose under the lead of PSO, up by Rs2.55 at Rs444.15 on 15m shares and D.G.Khan Cement, higher by Rs5.25 at Rs75.80 on 13m shares.
DEFAULTER COUNTER: Barring modest buying in Dandot Cement which was held unchanged at Rs11.20 on 0.233m shares, trading on this counter remained relatively slow.
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