Wednesday, September 16, 2009

Stocks maintain upward drive, gain 93.57 points

KARACHI: The Karachi Stock Exchange (KSE) 100-share index on Tuesday maintained its upward drive for the third session and was quoted further higher by 93.57 points at 8,769.24 as some of the index-heavy shares remained under squeeze, but the local funds were net sellers.
It earlier in the session breached through the barrier of 8,900 points at 8,937.93 from the overnight close of 8,675.67, signalling that the three-digit rise could take it to any highs where the current speculative traders want it to.
The market witnessed a great contrast in the investor behaviour in Tuesday’s trading. While local funds remained busy in profit-taking, so-called investors kept under squeeze those shares having a massive weightage in the index, said a local leading stock analyst Hasnain Asghar Ali, adding ‘who was right and who was wrong is pretty difficult to judge.’
‘Any investor in a proper frame of mind may not think of putting money in the risky business of shares at a time when the political scenario is heating up, leading to a major showdown between the two ruling parties,’ he said, adding ‘the so-called bull-run triggered by foreign buying appears to be a massive bluff.’
The history of stock trading was reminiscent of witnessing many a sustained bull run when the index was ruling around 15,000 points and daily volume figures touched the high mark of 1.122bn shares, another leading analyst Ahsan Mehanti said, adding ‘the traded volume of Rs12.00 billion and a volume of 260m shares can be termed as bull-run.’
‘It appears to be a trap to net in small investors after having raised the bogey of foreign buying,’ he said, and added ‘if that be the case why cash-heavy local funds are indulging in profit-selling rather than having rode the bandwagon.’
The developing political confrontation between the two major contenders of power and blame-game could significantly erode the current saving of the genuine investors if they were trapped by the big ones, he added.
Most of the leading oil shares, considered an envy of foreign investors, are down in a row under the lead of Pakistan Oilfields, Pakistan Petroleum, and covering purchase in the index heavy MCB has more other reasons, including the Nishat Group’s fresh stake of Rs1.08 billion in it.
From now onwards, the market is expected to follow the local political developments rather than speculative feelers originating from here and there as investors have now become more wise after the successive market crashes, during the last couple of years, which wiped out $13 billion from the savings of small investors.
In physical trading, leading gainers were led by Bata Pakistan, up by Rs40.37 and 32.20 followed by Habib Bank, Sanofi-Aventis, ICI Pakistan, Pakistan Services and Peco and Fazal Textiles, which rose by Rs4 to 16.43. Losers were led by Rafhan Maize and Wyeth Pakistan, off by Rs75 and 10.41, followed by Sapphire Fibres, PSO, Pakistan Oilfields, Colgate Pakistan, Clariant Pakistan and Sitara Chemicals, lower by Rs4.31 to 40.
Trading volume rose further to 302.831m shares as compared to previous 260.417m shares, but losers had a small edge over the gainers at 178 to 175, with 20 shares holding on to the last levels.
The active list was topped by OGDC, steady by 37 paisa at Rs108.29 on 39m shares followed by Pak PTA, lower by seven paisa at 4.98 on 28m shares, National Bank, up Rs3.57 at 73.71 on 18m shares, Fauji Fertiliser Bin Qasim, firm by 31 paisa at 21.16 on 15m shares, Bank Al-Falah, steady 14 paisa at 12.06 on 15m shares, JS & Co, up 85 paisa at 26.24 on 14m shares, and Arif Habib Securities, higher by Rs1.74 at 36.37 also on 14m shares. DG Khan Cement followed them, firm 17 paisa at Rs33.73 on 13m shares, Pakistan Oilfields, off Rs5.41 at 201.03 on 13m shares and PTCL, steady by 13 paisa at 21.68 on 12m shares.
Forward counter
OGDC also led the list of actives on this counter, up Rs1.18 at 106.17 on 1.048m shares, followed by DG Khan Cement, firm by 13 paisa at 33.84 on 0.494m shares, Nishat Power, lower48 paisa at 13.24 on 0.436m shares.
National Bank followed them, higher by Rs3.50 at 73.96 on 0.213m shares and Pakistan Oilfields, lower by Rs4.27 on 0.197m shares.
Defaulter companies
Mixed trend was seen on this counter but price changes were fractional barring a sharp fall of Rs1.73 at 33.02 in Mustehkam Cement without any business.
Among the actives, Genetech Power was leading, up 48 paisa at Rs1.18 on 0.436m shares followed by Dominion Stock Fund, steady four paisa at Rs0.66 on 27,230 shares and Quice Foods, lower 20 paisa at Rs1.03 on 12,500 shares. Others were traded fractionally on a mixed note.

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