KARACHI, Sept 19: Stocks on Thursday staged a snap rally as financial institutions assisted by leading bulls covered positions in most of the pivotals under the lead of PSO, paving the way for the index to continue its upward journey to the coveted level of 2,000.
Conflicting rumours about the privatization of the oil giant, PSO dominated the trading all through the session as both the leading institutional traders and the general investors played on both sides of the fence, making the PSO sell-off an excuse.
The KSE 100-share index rose by another 26.46 points at 1,989.23, signalling that its next chart point could be above the psychological barrier of 2,000, now billed as a realistic level backed by objective financial background news. Market capitalization rose by Rs5.581bn at Rs460.585bn.
During the last four sessions, it has recovered about 50 points or 3.5 per cent, a credible performance judged by any standard and points to the investor mood and future thinking on the direction of the market.
“I think the bulls are playing a pivotal role in keeping the index level beyond the 2,000 figure before the national elections due on Oct 10”, one broker predicts “this level could provide a strong manoeuvring leverage to the speculative forces in the sessions preceding the election day”.
No one could precisely predict about the outcome of the elections, the winning party or the smooth transfer of power to the elected members and that is perhaps why brokerage houses and institutional traders are taking all precautionary steps to have in mind all the possible risks involved in holding long positions.
Although bulk of the support originated from the institutional traders, general investors also participated in the proceedings following the lead of the big ones as is indicated by the buying interest, which covered almost all the sectors.
“The investors are keenly following the reports about the early sell-off of the controlling shares of Pakistan State Oil (PSO),” analysts said adding “it has assumed the role of a market trend-setter in the absence of Hub-Power, which is now being quoted spot ahead of its board meeting and book closure”.
Plus signs thus dominated the list as most of the leading shares finished with varied types of gains under the lead of Rafhan Maize, PSO and Arif Habib Securities, which rose by Rs5 to Rs8. Other good gainers were led by Husein Industries, PICIC, Shell Pakistan, HinoPak Motors, Reckitt and Benckiser, Cherat Papers and Ferozsons Lab, rising by Rs1.50 to Rs4.
Losers such as Treet Corporation and Pakistan Oilfields, off Rs1.25 and Rs4.35 followed by Sajjad Textiles, Wyeth Pakistan, EFU Life, Al-Abid Silk and Mari Gas, off one rupee to Rs1.25 respectively.
Trading volume crossed the figure of 100m shares after several lean sessions amounting to 102m shares as compared to 89m shares a day earlier. Advancing shares held a strong lead over the losing ones at 172 to 93, with 61 shares holding on to the last levels.
PTCL led the list of actives, on market talk of delay in its sell-off, up by 60 paisa at Rs20.10 on 31m shares, PSO, higher by Rs4.05 at Rs192.30 on 25m shares, MCB, up by 55 paisa at Rs26.80 on 10m shares, D.G.Khan Cement, steady five paisa at Rs12.15 on 4m shares, Engro Chemical, up by 50 paisa at Rs61.60 on 3.415m shares and Fauji Fertilizer, higher by 45 paisa at Rs51 on 3.342m shares.
Other actives included Dewan Salman, lower 10 paisa on 2.626m shares, Sui Northern Gas, firm by five paisa on 2.112m shares, Hub-Power, up by 10 paisa on 1.624m shares and ICI Pakistan, up by 15 paisa on 1.584m shares.
FORWARD COUNTER: PTCL also came in for strong buying on this counter and rose by 55 paisa at Rs20.05 on 9.492m shares followed by PSO, sharply higher by Rs4.50 at Rs192.85 on 8.277m shares and Hub-Power, steady five paisa at Rs24.25 on 4.250m shares. Others were modestly traded mostly on the higher side under the lead of MCB, which rose by 50 paisa at Rs26.85 on 0.248m shares.
DEFAULTER COMPANIES: Well over a dozen shares of the defaulting companies came in for alternate bouts of buying and selling under the lead of Amazai Textiles, off 40 paisa at Rs0.60 on 6,500 shares followed by Bela Automotive, easy 15 paisa at Rs1.65 on 3,000 shares and Mukhtar Textiles, up by 15 paisa at Re1 on 2,000 shares.