KARACHI, Dec 16: Trading volume on the Karachi Stock Exchange on Monday soared to a year’s high level of 436m shares both in the ready and forward counters thanks to a massive activity in Hub-Power and some other pivotals aided by strong speculative support. The KSE 100-share index rose by 20 points at 2,472.
It was the third single-session highest figure for the last two years, the previous record figures being 462m and 469m shares hit in January 2000, PTCL being the outstanding performer with a tally of 225m shares. The highest-ever figures so far were established at 536m and 570m shares the same year.
As the Karachi automated Trading System developed some technical fault owing perhaps to heavy workload in the form of large volume, the correct picture of the broader market was not available till late in the evening.
It was a judicious blend of both local and foreign buying in Hub-Power aided partly by market talk of higher sales and speculation for an increased dividend. The rally was also well-supported by heavy buying in PSO followed by sell-off reports and an increase in petroleum prices.
The deadline given for the sell-off of some mega issues including state-owned Pakistan State Oil (PSO) by the newly-appointed adviser to prime minister on privatization triggered massive buying in most of the blue chips, creating boom-like conditions, dealers said.
Another contributory aiding factor was heavy institutional and foreign buying in Hub-Power, which soared to Rs32, up by Rs1.20 on a massive activity of 151m shares. The fresh buying flurry was attributed to higher sales and expectations of enhanced dividend. PSO followed it with a sharp turnaround followed by reports of inventory gains after the increase in the petroleum prices on Sunday.
An idea of panic buying at the current levels may well be had from the fact that the turnover figure soared to a year’s peak level of 436m shares (all time high record being 570m shares set some two years back”.
Owing to some technical problems in the KSE computer system, final index figure was quoted late in the evening at 2,471.97 points, up 19.73 points from the weekend close of 2,452.24 points.
Its persistent increase thanks to heavy buying in the leading base shares it is generally speculated that it could end the current year close to the previous all-time high record of 2,662 on the strength of the accelerated sell-off of the state-owned units.
Stock analysts said the new time schedule given by the prime minister’s adviser about the sell-off of some mega state units seems to have created boom like conditions on the stock market similar to mid-90s.
“What seems to have given credence to the new sell-off plan is the credibility of the man behind it known as a man of action”, they added “The perception of adherence to the sell-off programme triggered buystops in those shares and allied to them in one form or the other”.
PSO, which has been under pressure for the last couple of sessions both in the ready and the forward counters came in for strong support at the lower level and initiated the run-up.
Hub-Power topped the list of most actives, higher by Rs1.20 at Rs32 on 151m shares followed by Sui Northern Gas, also under sell-off, higher 65 paisa at Rs21.45 on 36m shares, PSO, higher Rs5.60 at Rs189 on 33m shares, National Bank, up 90 paisa at Rs28 on 22m shares and Dewan Salman, firm by 35 paisa at Rs16.05 on 12m shares.
FORWARD COUNTER: Forward counter also followed the lead of the ready section where bulk of the support remained confined to both Hub-Power and PSO followed by Sui Northern. The last two are to be sold out by March 31, next year and that was perhaps why both attracted strong support at the current lower level and both rose appreciably.
DIVIDEND: Quality Textiles, bonus shares at the rate of 10 per cent for the year ended Sept 30, 2002.
BOARD MEETINGS: Island Textiles, Salfi Textiles, Tata Textiles and Ahmad Hassan Textiles on Dec 19, Prime Commercial Bank, Ideal Spinning, Ishaq Textiles, and Shahtaj Sugar Mills on Dec 20 and Glamour Textiles on Dec 24.