KARACHI, Oct 16: Stocks on Wednesday rose further across the board boosted by heavy buying in the energy shares on the perception of higher earnings followed by upward revision in the petroleum prices. The index recovered another 19.07 points at 2,082.24.
On the forward counter, PSO came in for strong speculative support almost from all the quarters and turned out a massive activity of 25m shares, up Rs.4.80 at Rs.159.15.
Equally important was brisk activity on the defaulter counter where most of the undervalue shares attracted active support under the lead of Suzuki Motorcycle, up Rs.1.40 at Rs.8.50 on 0.202m shares. It signals a major post-election shift in future investor perceptions, one broker said.
The KSE 100-share index maintained its upward drive for the third session in a row as bulls were not inclined to lose their grip on the price line at least for the near-term aiming at bigger capital gains.
It finished around 2,082.24, up 19.07 points indicating that bulls may have some rethinking on the post-election political scenario and the formation of governments in the backdrop of a split mandate after having touched the coveted level of 2,100 points.
The fortnightly upward revision in petroleum prices by 2.5 to 6.2 per cent triggered near-panic speculative buying in both the oil giant PSO and Shell Pakistan, which took the entire market along with them to pre-election highs.
Analysts are divided over the market’s post-election run-up. Some say it is speculative and could leave behind a long list of causalities after the post-election political realities show their real face.
But some other claim it is higher yield perceptions in the backdrop of higher earnings by most of the leading companies including MNCs, which do not allow investors to liquidate long positions.
The saner elements, however, think the situation is fraught with high risks and until there is a smooth transfer of power and a stable coalition government at the centre anything could happen in-between.
“The talk of a steady inflow of foreign investment at the moment is based on speculative thinking and may not have any relevance to the current price run-up,” says a leading analyst. “But as far as the basic market fundamentals are concerned they are certainly bullish.”
Apart from energy shares, notably PSO and Hub-Power, leading bank shares, ICI Pakistan and other leading shares also attracted good support even at the higher levels.
Leading gainers were led by Wyeth Pakistan, Shell Pakistan, Siemens Pakistan, Unilever Pakistan and Pak Reinsurance Company, which posted gains ranging from Rs.5 to 60.65, highest for 10-rupee shares being in Shell Pakistan and Siemens, up Rs.5.30 and 19.60.
Other good gainers were led by Kohinoor Weaving, National Refinery, Pakistan Oilfields, Sitara Chemicals, Clover Pakistan and several others, rising by Rs.2.20 to 3.
Losers were led by Ideal Energy, Attock Refinery, General Tyre, Gillette Pakistan and Shafiq Textiles, off Rs.1.10 to 2.40.
Trading volume showed a modest rise at 144m shares from the previous 141m shares as gainers maintained a strong lead over the losers at 184 to 68, with 58 shares holding on to the last levels.
Hub-Power again led the list of actives, up 25 paisa at Rs.24.45 on 32m shares, MCB, higher 60 paisa at Rs.28.90 on 19m shares, Engro Chemical whose board is meeting on Oct 22, unchanged at Rs.66.45 on 9m shares, ICI Pakistan, higher 70 paisa at Rs.41.95 on 8m shares, Telecard, up 40 paisa at Rs.12.85 on 7m shares, National Bank, firm by 20 paisa at Rs.23.05 on 7m also on 7m shares, Fauji Fertilizer, unchanged at Rs.57.70 on 6m shares and PTCL, up 10 paisa at Rs.19.85 also on 6m shares.
Sui Northern followed them, higher 25 paisa on 5m shares and Bank of Punjab, up 55 paisa also on 5m shares.
FORWARD COUNTER: Fresh heavy short-covering in PSO triggered by its sell-off reports again featured the trading on the forward counter where other leading shares also finished higher.
PSO posted a fresh rise of Rs.4.80 at Rs.159.95 on 24.613m shares followed by Hub-Power, up 20 paisa at Rs.24.50 on 4.160m shares. Engro Chemical was an exception, which shed five paisa at Rs.66.75 on 1.404m shares, while Sui Northern rose by 20 paisa at Rs.15.85 on 1.007 shares. Others were modestly traded.
DEFAULTER COMPANIES: For the second session in a row, Suzuki Motorcycle was actively traded on strong buying. It rose by Rs.1.40 at Rs.8.50 on 0.202m shares followed by Dominion Stocks, unchanged at Rs.1.50 on 15,500 shares and Quice Foods, off 55 paisa at Rs.8.15 on 12,000 shares.