KARACHI, April 21: After several abortive attempts, the KSE 100-share index on Monday finally managed to surpass its previous all-time peak level of 2,955 on heavy buying in most of the pivotals aided by peace feelers from India and offer of talks to resolve the outstanding issues between the two neighbours.
“It could be the decisive forward thrust to the coveted index level of 3,000,” predicts a leading stock analyst. “The gap of 33 points could be bridged even tomorrow aided by the massive surplus liquidity.”
It soared to finish at 2,967.49 points from the weekend 2,935.39, surpassing its previous all-time peak level of 2,955.52 established on Jan 16, 2003, up 32.10 points on the day.
However, on that eventful day it briefly touched the day’s highest bid at 2,990 but failed to sustain it or breach through the barrier of 3,000 as widely speculated during the January boom conditions.
The total market capitalization is following the index value and is also inching up to establish a new record as most of the heavily-capitalized shares are adding value to their share almost each day. It also rose above its previous peak level of Rs647 billion at Rs651 billion. Monday’s rise being Rs10.344bn.
The general perception is that the index is heading towards crossing the barrier of 3,000 points possibly during the current week, of course, after due technical corrections. But what the post-3,000 level, no one is sure. There is, however, a loud whispering “once the rubicon is crossed supporting factors and bulls’ stake will sustain it beyond this level.”
The peace feelers from the Indian highups and their willingness to hold talks to resolve the outstanding issues through peaceful means seem to have given the much-needed boost to a market weighed down by the local political standoff on the LFO issue,” analysts said.
“The sustained run-up in a way also reflects the investor yearning for peace between the two close neighbours at war since their independence,” they said adding “the goal of peace may still be elusive but the market has already given verdict on the feelers.”
On the corporate front, the last week of the current month is very important for the future direction of the market as board meetings of about a 100 companies including some MNCs and big local ones are due and predictions of handsome payouts continue to inspire fresh buying from all and sundry.
“Most of the blue chips may not have yet reached the saturation point and still have the potential to rise further but major shift in investor buying and their newly found interest in the second-liners could give new meaning to stock trading in the coming sessions,” predicts a leading analyst.
After several months odds gains were recorded in some of the leading shares as some of the contenders were not inclined to allow further price movements in them for some technical reasons. Central Insurance, IGI Insurance, and Dawood Hercules were leading among them, closing at Rs5.67, Rs7.92 and Rs10.33 in that order.
Wyeth Pakistan and Pakistan Refinery topped the gainers, up Rs53.25 and Rs12.75 followed by IGI Insurance, Siemens Pakistan and Dawood Hercules, which posted gains ranging from Rs7.92 to Rs10.33.
The broader list was strewn with sharp gains in some other pivotals, notably Central Insurance, Artistic Denim, Noon Sugar, Lakson Tobacco, Attock Refinery and National Refinery, higher by Rs4 to Rs4.85.
Losers were led by Arif Habib Securities and Pakistan Reinsurance Co, 4th ICP Mutual Fund, Shezan International, Gatron Industries and Shell Pakistan, which suffered fall ranging from Rs2.05 to Rs12.95, while all other losses were mostly fractional.
Traded volume rose to 204m shares from the previous 169m shares as the advancing shares maintained a strong lead over the losing ones at 229 to 96, with 59 shares holding on to the last levels.
PTCL topped the list of most actives, higher 45 paisa at Rs25.80 on 49m shares followed by Sui Northern Gas up 30 paisa at Rs26.95 on 48m shares, Hub-Power, easy five paisa at Rs35.40 on 17m shares, Dewan Motors, lower 25 paisa at Rs15.35 on 9m shares, D.G. Khan Cement, higher Rs1.45 at Rs14,75 on 8m shares and National Bank, up 40 paisa at Rs29.25 also on 8m shares.
Other actives included PIAC(A), higher by 55 paisa on 7m shares, Bosicor Pakistan, firm 30 paisa also on 7m shares, Pakistan Oilfields higher Rs1.70 on 4m shares and Nishat Mills, up 90 paisa on 3m shares.
FORWARD COUNTER: Speculative issues on the forward counter also showed firm trend in sympathy with the ready section amid active trading.
The notable feature was that trading also commenced in the May settlements side by side the maturing April contracts.
All the leading shares rose modestly barring May settlement of PSO and ICI Pakistan, which suffered modest decline on stray selling.
PTCL April settlement posted an odd gain of 37 paisa at Rs25.77, while PSO rose by 30 paisa at Rs213 on 9m and 8m shares respectively.
Hub-Power was marked down by 15 paisa at Rs35.40 on 5m shares, while Sui Northern Gas rose 35 paisa at Rs27 on 3m shares. FFC-Jordan Fertilizer, rose six paisa at Rs12.36, to another odd closing of Rs12.36 to avoid further buying or selling.
DEFAULTER COMPANIES: Buying interest on this sector spread to some other issues but Suzuki Motorcycles attracted profit-selling at the higher level and fell by 60 paisa at Rs13.40 on 99,000 shares followed by Quice Foods, up 10 paisa at Rs1.40 on 45,500 shares.
Allied Motors and Sahrish Textiles were other among the actives, up 50 and 10 paisa at Rs12.50 and Rs0.85 on 18,000 and 14,500 shares respectively.