KARACHI, July 2: The new account rally was further extended on the stock market on Tuesday as investors continued to build up long positions in most of the pivotals under the lead of Hub-Power followed by reports that it has replaced faulty generator. The KSE 100-share index breached the barrier of 1,800 points at 1,804.96, up about 20 points.
All the leading stocks came in for strong short-covering at the lower levels but at one stage all-roads led to Hub-Power as investors tried to grab the floating stock around the prevailing rates.
However, speculative run on it was partly checked by the recent lowering of the circuit breaker to 5 per cent from 2.5 per cent but the buying euphoria in part remained unsatisfactory till the close.
As speculated, the KSE 100-share index breached through the psychological barrier of 1800 points, up 19.82 points at 1,804.96 as compared to 1,785.14 a day earlier.
After a brief interruption, it is heading to level its previous record of 1,900 point index level and what next, only objective conditions at that time could tell, brokers said.
“Apart from new fiscal buying, the rally was also supported by reports that the Hubco has replaced its faulted generator and has resumed normal power supplies to Wapda, its sole buyer,” analysts said.
The share of Hub-Power has been under pressure for the last about two months followed by conflicting reports about its generation capacity and fears of lower sales. It has fallen from the peak level of Rs.27 to Rs.20 since then.
It came in for strong short-covering after its management announced the replacement of the generator and accounted for more than a half of the day’s total volume, up 35 paisa at Rs.23.95 on 97m shares.
Fertilizer shares followed them and attracted active buying at the current levels on the perception that tax exemptions in the new budget will boost sales and profits. Cement shares followed them on reports that leading among them have secured big export orders from Afghanistan and are in the process of physical shipments. Attock Cement and D.G. Khan Cement were leading among them.
“With fears of war with India now fully allayed, a good and investor friendly budget and the market’s oversold position, all point to a robust rally in the sessions to come alone on technical grounds,” some analysts predict. “The beginning has already been made with the advent of new fiscal buying.”
Plus signs dominated the list for the second session in a row, major gainers being Kohat Cement, Treet Corporation, Abbott Lab, Javed Omer Vohra and Attock Refinery, up by Rs.1.85 to 3.90.
Other gainers were led by Masood Textiles, Habib Sugar, Attock Cement, Kohat Cement and Fauji Fertilizers were leading among them, rising by Rs.1.50 to 1.85.
Losers were led by Sana Industries, Shafiq Textiles, Lever Brothers, off Rs.1.05 to 3, the largest Rs 10 to 15.70 being in Wyeth Pakistan and Fateh Textiles followed by Network Leasing, Orix Leasing, Dewan Textiles and Colony Textiles off one rupee to Rs.1.05.
Trading volume soared to 191m shares from the previous 65m shares as advancing shares held a strong lead over the losing ones at 180 to 91, with 32 shares holding on to the last levels.
Apart from Hub-Power, the most active list was topped by PTCL, higher 35 paisa at Rs.17.65 on 37m shares, PSO, up 60 paisa at Rs.142.15 on 10m shares, Sui Northern, higher 35 paisa at Rs.14.20 on 8m shares, D.G. Khan Cement, which attained its face value, up 40 paisa at Rs.10.30 and National Bank, steady 10 paisa at Rs.21.15 on 4m shares.
Fauji Fertilizer led the list of other actives, up Rs.1.65 on 4m shares, Engro Chemical, higher by Rs.1.10 on 3.242m shares, ICI Pakistan, firm by 10 paisa on 2.537m shares and Telecard, up 20 paisa on 2.459m shares.
FUTURE CONTRACTS: Ibrahim Fibre and Engro Chemical came in for active support and rose to close higher by Rs.1.25 to 1.55 at Rs.15.25 and 62.10 respectively on modest turnover. Nishat Mills and MCB fell fractionally by 15 to 50 paisa.
Hub-Power was actively traded, up 25 paisa at Rs.24.05 on 14m shares followed by PTCL, higher 45 paisa at Rs.17.80 on 2.741m shares and PSO, up 55 paisa at Rs.142.80 on 2.741m shares.
DEFAULTER COMPANIES: Trading on this counter was relatively slow in the absence of buyers. Shares of six companies came in for stray bouts of buying and selling under the lead of Mehran Jute, lower 20 paisa at Rs.0.75 on 4,500 shares, followed by Allied Motors, easy five paisa at Rs.7.50 on 1,000 shares and Gammon Pakistan, up 70 paisa at Rs.23 on 500 shares.