KARACHI, Sept 24: Positive news about the privatization of PSO prompted strong speculative buying in it and some other leading base shares, enabling the KSE 100-share index to breach through the barrier of 2,000 points for the third time during the last couple of weeks.
The opening was, however, on the lower side but some rethinking about the likely bullish impact of the current drive to sell the state stake in most of the mega units on stock trading lured bulls back in the rings and they made extensive buying in most of them.
After opening lower by four points, the KSE 100-share index managed to finish above the coveted level of 2,000 at 2,003.85, up 16.64 points but opinions were divided over its future direction owing to the proximity of the national elections and law and order fears associated with it.
The Minister for Privatization on Monday announced Oct 30 the tentative date for the bidding to disinvest controlling shares of Pakistan State Oil (PSO) subject to completion of diligence process. The news was well-received in the market as was reflected by active short-covering in its share below the Rs200 per share mark.
“What seems to have triggered buystops in it was the names of bidders, which reinforced investor confidence about imminent sell-off, in part of state stake in it”, analysts said.
The bidders are Kuwait Petroleum, Caltex, Fauji Foundation, and Midrock of Saudi Arabia, all well-known companies in the oil trade having sound financial positions.
“Bidding may be delayed beyond Oct 30, the important thing is that the sell-off of state-owned mega issues now is not a distant possibility”, says a leading analyst adding “it could pave the way for the disinvestment of PTCL, ICP SEMF and some others units”. News of sell-off of another five per cent shares of National Bank at a premium also evoked good interest.
An air of optimism prevailed in the market as leading bulls remained busy in planning buying strategy and portfolio adjustment in the backdrop of post-privatization financial scenario.
Plus signs again dominated the list under the lead of Grays of Cambridge and Wyeth Pakistan, which rose by Rs23.25 and Rs20.00 respectively. Other prominent gainers were led by Sapphire Textiles, Cherat Cement, Fazal Textiles, International Industries, Abbott Lab, Aventis Pharma, Mitchell’s Fruits, Treet Corporation, Rafhan Maize and Shell Pakistan, up by Rs2 to Rs5.25, largest rise of Rs10 and Rs19.05 being in Rafhan Maize and Shell Pakistan.
Leading losers were led by energy shares came in for renewed selling under the lead of Attock Refinery and Pakistan Oilfields, off Rs4.40 and Rs4.55. Javed Omer, Noon Sugar, Pakistan Refinery, and Al-Ghazi Tractors followed them, off Rs1.85 to Rs2.90.
Trading volume rose to 154m shares from the previous 96m shares as advancing shares held a strong lead over the losing ones at 167 to 118, with 47 shares holding on to the last levels.
PSO topped the list of most actives, sharply higher by Rs7.70 at Rs198.50 on 47m shares followed by Hub-Power, up by 25 paisa at Rs23.80 on 24m shares, PTCL, firm by five paisa at Rs20.15 on 21m shares, D.G.Khan Cement, up by 55 paisa at Rs12.35 on 9m shares, Engro Chemical, unchanged at Rs62.55 on 6m shares and National Bank, steady by 10 paisa at Rs23 also on 6m shares.
Other actives were led by Dewan Salman, easy five paisa on 6m shares, Sui Northern, steady by five paisa on 5m shares, ICP SEMF, up by 10 paisa on 4m shares and ICI Pakistan, higher by 20 paisa on 3m shares.
FORWARD COUNTER: PSO led the list of most actives on this counter also as its ruling contract posted a smart gain of Rs7.30 at Rs198.55 on 9m shares, while its October settlement rose by Rs5.85 at Rs160.60 on 3m shares.
Both the contracts of Hub-Power fell fractionally at Rs23.80 and Rs23.95 on 3.288m and 2.380m shares respectively. PTCL on the other hand rose by 8 and two paisa for both the contracts at Rs20.18 and Rs20.35 on 3.459m and 1.813m shares. Others were traded modestly but mostly on the higher side.
DEFAULTER COMPANIES: Custodian Modaraba attracted good support and rose by Rs1.25 at Rs5 on 66,000 shares followed by Suzuki Motorcycle, firm by five paisa at Rs4.95 on 18,000 shares and Mehran Jute, easy five paisa at Rs0.70 on 2,000 shares.
DIVIDEND: Pakistan Telephone cash 10 per cent, B.R.R. Modaraba 11 per cent, IBL Modaraba 8.5 per cent, Paramount Modaraba 10 per cent, Grays Leasing 10 per cent, GoodLuck Industries 20 per cent, Golden Arrow, Capital Asset Leading and Atlas Investment Bank, all nil for the year ended June 30, 2002.
BOARD MEETINGS: Spencer & Co Pakistan, Capital Mutual Fund, Inter-Asia Leasing, on Sept 25, Noon Pakistan, Lucky Cement, Maple Leaf Cement and Leatherup on Sept 26.