KARACHI, Nov 19: Stocks on Tuesday staged a robust rally and consolidated above the psychological barrier of 2,300 points sending signals rubicon has been crossed decisively sans political worries.
Massive buying in PTCL and Hub-Power, leading among the trend-setters were behind this feat allowing the index to cross the barrier but this time not falter half way for the onward run to the next chart point of 2,400.
The KSE 100-share index settled above the crucial index level of 2,300 points on active follow-up support in Hub-Power, PSO and PTCL on reports of better returns on investment in the backdrop of higher corporate earnings.
Moody’s upgrading of Pakistan’s foreign debt rating from stable to positive also boosted market sentiment on the perception that foreign investment may be coming in a big way after the formation of the government at the centre. Already, Hub-Power was said to be under the squeeze of a leading foreign fund.
The KSE 100-share index posted a fresh smart rise of 32.57 points at 2,332.53, considered to be eight-year high level and if all goes well on the political front including the formation of the central government it could climb further to 2,400.00 points.
“To sustain the crucial index level of 2,300 is very important for the future health of the broader market and it is incumbent of PTCL and Hub-Power to play their due role in the coming sessions”. Both have a combined weightage of about 44 per cent in the 100-share index and modest rise in their share value could keep it well above this level.
Political worries are still there but investors seem to have followed the general line of things including the market’s bullish basic fundamentals and made fresh extensive buying on all the counters under the lead of pivotals.
Analysts said the voting for the National Assembly speaker has ended and counting has begun soon after. Who is winner among three contestants will give the safe passage for the top slot for which election will be held on Thursday.
Plus signs again dominated the list, major gainers being General Tyre, Nestle MilkPak, Shell Pakistan, Pakistan Oilfields and Unilever Pakistan, which posted gains ranging from Rs3.25 to Rs10.
Other good gainers were led by PSO, Siemens Pakistan, Fauji Fertilizer, Wazir Ali Industries, and some others, up Rs1.50 to Rs2.60.
Losers were led by Al-Ghazi Tractors, Gatron Industries, Pakistan Refinery, Pak Reinsurance Co and Grays of Cambridge, off one rupee to Rs13. They were followed by Gadoon Textiles 17th ICP, Dawood Hercules and Babri Cotton, off one rupee to Rs1.25.
Trading volume further rose to 249m shares from the previous 228m shares as the advancing shares maintained a strong lead over the losing ones at 158 to 82, with 58 shares holding on to the last levels.
Hub-Power again topped the list of most actives, up by Re1 at Rs28.65 on 89m shares, followed by PTCL, higher by 40 paisa at Rs22.70 on 43m shares, FFC-Jordan Fertilizer, firm by 25 paisa at Rs8.45 on 19m shares, Sui Northern Gas, up 55 paisa at Rs18.60 on 15m shares and Fauji Fertilizer, higher by Rs2.60 on 14m shares.
PSO led the list of other actives, up by Rs1.85 on 11m shares, Engro Chemical higher by 75 paisa on 10m shares, National Bank, steady 10 paisa on 6m shares, Dewan Salman, lower 10 paisa on 4m shares, Telecard, up by 45 paisa also on 4m shares.
FORWARD COUNTER: Hub-Power remained in strong speculative demand for the second session in a row and rose by 85 paisa at Rs28.65 on 22m shares followed by PSO, sharply higher by Rs1.40 at Rs193.50 on 8m shares and PTCL, higher by 30 paisa at Rs22.70 on 6m shares. Sui Northern rose by 50 paisa at Rs18.60 on 3m shares.
The largest rise of Rs2.95 was noted in Fauji Fertilizer, which came in for active buying on reports of higher sales, at Rs62.10 on 2m shares.
DEFAULTER COMPANIES: Shares of 10 companies came in for trading under the lead of Pangrio Sugar, which fell by five paisa at Rs0.95 on 26,000 shares, followed by Suzuki Motorcycles, unchanged at Rs7.30 on 22,000 shares and Schon Modaraba, steady five paisa at Rs0.65 on 12,000 shares. Others showed mixed trend amid slow trading.