KARACHI, Dec 13: Shares on Friday maintained their upward drive as investors continued to build-up long positions on selected counters aided by reports of heavy foreign buying in Hub-Power and some other MNCs. The KSE 100-share index posted a fresh rise of 23.22 points at 2,452.24.
Bulk of the support again remained confined to Hub-Power and PTCL on the forward counter, which some analysts said has a positive impact on their share values in the ready section. PTCL is being quoted on spot basis.
“Hedging operations on the cleared list appear to be at their peak”, analysts said “In the prevailing typical conditions investors generally create safe havens to avert undue risks”. Forward business swelled to a record 73m shares.
The KSE 100-share index finished with an extended gain of 23.22 points well above the support level of 2,450 at 2,452.24 as compared to 2,429.02 a day earlier amid rumours that its next chart point could be 2,500.
The weekend rally generally paves the way for the continuation of the bull-run when the trading resumes next Monday, dealers said.
The recent visit of the prime minister’s economic adviser, Shaukat Aziz and his statements here about the new economic order under the political government seems to have generated a good bit of fresh buying by both the institutional traders and the speculative forces.
“His suggestion to banks to invest excess liquidity in the housing sector to generate economic activity on the other related fields seems to spurred a good bit of fresh buying in the cement, and banking shares”, one broker said.
He said the interesting feature is that share values are not rising in line with the sustained increase in the index value. In a way, it reflects the major investor thrust is on the two leading base shares, PTCL and Hub-Power, which together hold a weightage of 44 per cent in it.
That is perhaps why some analysts doubted the market’s ability to sustain the current run-up. The rally should be broad-based and share prices should rise in the same proportions as the index does, some others said.
Auto shares recovered previous losses after the denial that there is no plan to allow the import of reconditioned cars. Shaukat Aziz during his recent visit to Karachi has hinted at the possibility while answering a question.
Unilever Pakistan and Wyeth Pakistan were leading among the gainers, up by Rs9 to 10. Other good gainers were led by EFU, IGI Insurance, Dawood Cotton, Noon Sugar, Mari Gas, Fauji Fertiliser, Pakistan Oilfields, Siemens Pakistan and Packages, which posted gains ranging from Rs2 to Rs4.95.
Losers were again led by Treet Corporation and Pakistan Refinery, off Rs4.60 and 4.20 respectively followed by Adamjee Insurance, PSO, HinoPak Motors, Millat Tractors and BOC Pakistan, off Rs1.20 to 2.80.
Energy and chemical shares remained in strong demand at the lower levels and so did some blue chips on other counters amid active short-covering.
Trading volume rose to 337.113m shares from the previous 265m shares as advancing shares maintained a fair lead over the losing ones at 200 to 108, with 57 shares holding on to the last levels.
Hub-Power again led the list of actives, up by 35 paisa at Rs30.80 on 96m shares followed by Sui Northern Gas, higher by 75 paisa at Rs20.80 on 39m shares, PSO, off Rs1.20 at Rs183.40 on 27m shares, FFC-Jordan Fertiliser, firm by 30 paisa at Rs9.30 also on 27m shares, National Bank, up by 55 paisa at Rs27.10 on 18m shares and Fauji Fertilizer, higher by Rs2 at Rs68.20 also on 18m shares.
Other actives were led by Telecard, lower 40 paisa on 10m shares, Engro Chemical, up by 70 paisa also on 10m shares, PTCL, higher 50 paisa on 1m shares and KESC, easy 10 paisa also on 1m shares.
FORWARD COUNTER: Hub-Power came in for renewed speculative support and led the list of most actives, up by 45 paisa at Rs30.95 on 20m shares followed by PTCL, higher 25 paisa at Rs22.15 on 19m shares, PSO, off Rs1.60 at Rs183.90 on 14m shares, Sui Northern, higher by 75 paisa at Rs20.85 on 5m shares and Fauji Fertilizer, sharply higher by Rs2.40 at Rs68.40 on 4m shares. FFC-Jordan Fertilizer was also traded higher by 20 paisa at Rs9.30 on 7m shares.
DEFAULTER COMPANIES: Shares of about two dozen companies again came for active bouts of buying and selling on this counter, most active among them being Mehran Jute, firm five paisa at Rs0.80 on 38,500 shares. Other actives were led by Metropolitan Steel, sharply higher by Rs1.50 at Rs10.50 on 29,000 shares and Amazai Textiles, lower 20 paisa at Rs0.80 on 11,000 shares.