KARACHI, Jan 6: Stocks on Monday posted fresh widespread gains as the strength of the energy sector spilled over to other counters aided by strong dividend-related fresh buying, pushing the index further higher by 20.74 points at 2,765.56.
Investors cherished the idea of best performing market in the region by the foreign analysts owing to 112 per cent rise in the index during the last year and were not inclined to take even a technical breather, brokers said. “No one among them is deterred by its highly overbought position, fraught with high risks.”
A reaction is overdue but being delayed by the bulls as the strong inflow of fresh funds did not allow investors to keep to the sidelines at least for the near-term, they added.
After opening lower owing to higher badla business and fears of a spate of selling by the weakholders, the KSE 100-share index recovered to close 20.74 points higher at 2,765.56 as compared to 2,744.82 at the last weekend, reflecting the strength of PSO, Shell Pakistan and Engro Chemical.
The interesting feature was that both the leading base shares, PTCL and Hub-Power, which hold about 44 per cent weightage in the index came in for active selling and fell modestly, telling that it could rise without the heavy mega issues.
“It is a significant development and reflects the general health of the broader market,” analysts said. “The broader market may not be able to resume the role of a trend-setter in future trading but it has demonstrated it could do.”
It also reflects that investors have decided to broad-base their share- holding almost to all the sectors, notably the low-priced ones, which have the potential of capital gains, they added.
“Apart from other changes, the new-year buying signals a major shift in the buying preferences of investors who are moving away from the overvalued shares to the undervalued ones,” brokers said.
The shift is significant as it will add to the strength of the broader market and in return ensure that snap reactions or technical corrections may not put the general investor at a disadvantage.
Plus signs dominated the list under the lead of Pakistan Refinery, Unilever Pakistan, PSO, Pakistan Oilfields and Shell Pakistan, which rose by Rs.5 to Rs.26.45, the largest rise being in Shell Pakistan on rumours of higher dividend.
Other good gainers were led by 4th and 13th ICP Mutual Funds, ICP SEMF, Husein Sugar, Pakistan Tobacco, National Refinery, Engro Chemical, Aventis Pharma, Sitara Chemical, Cherat Papers, Nestle MilkPak, Mitchell’s Fruits and National Food, which posted gains ranging from Rs.1.80 to Rs.2.70.
Losers were led by Nafees Cotton, Thal Jute, Sarhad Cigarette, Fazal Textiles and Pakistan Reinsurance Co, off Rs.1.20 to 13.75. Others fell fractionally.
Trading volume fell to 301.401m shares from the previous 468m shares but gainers maintained a fair lead over the losers at 203 to 123, with 53 shares holding on to the last levels.
The most active list was topped by Hub-Power, off 30 paisa at Rs.41.15 on 65m shares, PSO,higher by Rs.5.90 at Rs.225.30 on 51m shares, PTCL, easy, 25 paisa at Rs.25.30 on 26m shares, Engro Chemical, higher Rs.1.65 at Rs.94.70 on 17m shares and Pakistan Oilfields, up Rs.9.60 at Rs.181 on 15m shares.
Other actives were led by FFC-Jordan Fertilizer, steady by five paisa on 13m shares, ICI Pakistan, higher 35 paisa on 11m shares, Sui Northern gas, off 45 paisa also on 10m shares, KESC, lower 15 paisa on 9m shares and Pak PTA, up 15 paisa on 8m shares.
FORWARD COUNTER: Both the trend-setter, PTCL and Hub-Power came in for active selling and ended lower by 40 and 30 paisa respectively at Rs.25.60 and 41.55 on 8m and 15m shares respectively.
But on the other hand PSO attracted strong support and ended sharply higher by Rs.6.10 at Rs.227.05 on 12m shares and so did Engro Chemical, higher by Rs.1.85 at 95.50 on 3m shares and Fauji Fertilizer, up Rs.1.30 at Rs.80 on 0.945m shares. FFC-Jordan Fertilizer rose five paisa at Rs.10.15 on 3m shares.
DEFAULTER COMPANIES: Active trading was witnessed on this counter as shares of 19 companies came in for active bouts of buying and selling amid brisk deals. S. S. Oil was actively traded, higher by five paisa at Rs.3.75 on 28,500 shares followed by Quice Foods, up 15 paisa at Rs.1.55 on 14,000 shares. Crescent Spinning, fell by 10 paisa at Rs.0.40 on 10,000 shares, while others were modestly traded.