KARACHI, June 2: Share market on Friday maintained its upward drive for the second consecutive session as investors continued to build-up long positions at the current lower levels amid market talk that the funding limit under the CFS may further be increased.
The firm finish of the pre-budget session on a steady note signals that some of well-informed brokerage houses may have found cue to some of the positive “budgetary leaks” and decided to expand their portfolios on those counters.
The KSE 100-share index posted a fresh gain of 162.46 points at 10,346.23 as compared to 10,183.77 a day earlier, reflecting the strength of leading base shares and normal pre-budget performance.
An air of optimism prevailed in the KSE corridors followed by reports that the chief of the Securities and Exchange Commission of Pakistan (SECP) was in session with the board on the issue of Continuous Funding System (CFS) apparently to remove the cap of Rs24.5 billion on it.
“There was a loud whispering in the rings that existing CFS cap is expected to be removed or the limit of funding would be extended to a level capable of meeting the rising demand of investors,” said a leading stock analyst.
Some of the leading banks are expected to be made associate members to line up funds under the extended CFS limit replacing the badla mode of financing, he added.
Moreover, the market is still in an oversold position and could attract any amount of covering purchases at the current levels if the budget as market-friendly as being speculated, they said.
The interesting feature was that investors build-up fresh long positions on the bank and oil sectors ignoring the post-budget negative fallout of some of the tax proposals.
Although it was the last trading session before the national budget on next Monday, taxation worries did not deter investors to take fresh positions on the selected counters where potential of price appreciation was almost ensured, followed by a good bit of bargain-hunting.
IGI Insurance maintained its upward drive and ended with a fresh rise of Rs22.15 followed by Wyeth Pakistan, higher by Rs65. They were followed by Jahangir Siddiqui & Co, Artistic Denim, Gatron Industries, Lakson Tobacco, National Refinery, Pak-Suzuki Motors, AKD Capital and Shell Gas, up by Rs7 to Rs14.10.
Unilever Pakistan, Dawood Hercules and Grays of Cambridge fell by Rs10 and 23.55 followed by Atlas Honda, Clariant Pakistan, Gillette Pakistan, Unilever Pakistan, Treet Corporation and Mustehkam Cement, which suffered fall ranging from Rs3 to Rs10.
Trading volume rose modestly at 215m shares from the previous 173m shares as gainers maintained a fair lead over the losers at 190 to 100, with 39 shares holding on to the last levels.
OGDC again topped the list of most actives, up by Rs3.55 at Rs138.55 on 56m shares followed by National Bank, higher by Rs4 at Rs216 on 40m shares, D.G.Khan Cement, steady by 95 paisa at Rs95.75 on 17m shares, Pakistan Petroleum, firm by Rs1.90 at Rs231.90 on 17m shares, PTCL, up by 80 paisa at Rs47 on 10m shares and Pakistan Oilfields, higher by Rs4 at Rs367 on 9m shares.
Other actives were led by Lucky Cement, firm by 60 paisa on 8m shares, Fauji Fertiliser bin Qasim, easy five paisa on 5m shares, Bank of Punjab, steady by 35 paisa on 4m shares and Fauji Cement, up 15 paisa also on 4m shares.
FORWARD COUNTER: National Bank led the list of actives on this counter, up by Rs3.50 at Rs217.80 on 23m shares, followed by OGDC, higher by Rs3.55 at Rs137.75 on 20m shares and Pakistan Petroleum, steady by 70 paisa at Rs233.20 on 11m shares.
MCB followed them higher by Rs1.60 at Rs209.95 on 10m shares and Pakistan Oilfields, up by Re 1 at Rs366 on 7m shares.
DEFAULTER COS: Trading on this counter was relatively slow as a result prices showed fractional either-way changes on light business.
Crescent Fibre was an exception, which came in for active selling and fell by Re1 at Rs12.80 on 0.109m shares.
