KSE index gains 81 points on active short-covering
By Our Staff Reporter
KARACHI, Sept 27: Stocks on Wednesday extended the overnight run-up on active short-covering in oil and some bank shares aided by rumours of foreign buying but the volume remained light in the absence of leading sellers.
Essentially, it was an oil-based rally triggered partly by reports of new oil and gas finds, pointing to large reserves and partly by foreign interest in some of the leading oil exploration companies.
The KSE 100-share index posted a fresh rise of 81.09 points at 10,386.52 as compared to 10,305.43 a day earlier, while KSE 30-share index rose by 122.10 points at 12,930.12.
MCB whose management is floating shortly $150m GDR on the London Stock Exchange was on the top of list of foreign buyers followed by National Bank, OGDC, Pakistan Petroleum and Pakistan Oilfields.
“There is a strong rumour about the massive presence of Morgan Stanley in the market followed by two other UK and US-based asset management funds,” says a leading stock analyst.
Rumours of acquisitions of some of local banks by foreign investors pushed prices of some of the medium-sized banks having strong potential of growth sharply higher under the lead of Faysal and PICIC Bank, he added.
The external buying is partly based on the sell-off of some of them and partly to perceptions of capital gains at the ruling prices and their potential to rise from the current level.
There are, however, no hard and fast rules which could pinpoint the foreign targets, unusual activity in some of them reflects the presence of external buying, he added.
Some others linked the advent of foreign buying to president’s current visit to the US leading to political stability after his meetings with the US president, which is said to be the envy of foreign investors.
On the home front, higher dividend and bonus shares by some of the leading companies, notably by the textile sector also reinforced the investor perceptions of buoyant future market, they added.
Leading gainers were led by Thal Industries, in response to higher dividend and bonus shares at the rate of 100 and 20 per cent, respectively, up Rs8.70, Pakistan Oilfields on new oil finds, up Rs11.10 followed by Wyeth, which rose by Rs85.
Other good gainers included Arif Habib Securities, Jahangir Siddiqui & Co, Union Bank, Millat Tractors, Pak-Suzuki Motors and HinoPak, which rose by Rs4 to Rs6.35.
Losers were led by EFU Life, IGI, Pakistan Engineering, AKD Securities, Treet Corporation and Shell Gas, off by Rs4.05 to Rs7.75.
Trading volume showed a modest rise at 142m shares as compared to 105m shares a day earlier, as gainers forced a strong lead over losers at 152 to 91, with 49 shares holding on to the last levels.
National Bank topped the list of actives, up Rs2.75 at Rs247.90 on 16m shares, followed by MCB, easy by 45 paisa at Rs254.75 on 10m shares, Bank Alfalah, unchanged at Rs44.40 on 9m shares, Pakistan Petroleum, higher by Rs3.50 at Rs234.30 on 10m shares, Pakistan Oilfields, up by Rs11.10 at Rs337.00 on 8m shares, OGDC, up one rupee at Rs126.50 also on 8m shares, and PTCL, easy by 15 paisa at Rs40.25 on 6m shares.
They were followed by Nishat Mills, up 25 paisa on 6m shares, Crescent Commercial Bank, higher by 95 paisa also on 6m shares, PTCL, easy 15 paisa on 6m shares, and Hub Power, up Rs1.05 at Rs25.95 on 5m shares.
FORWARD COUNTER: National Bank also led the list of actives on this counter, up Rs1.30 at Rs247.00 on 3m shares, followed by Faysal Bank, easy by four paisa at Rs26.95 on 3m shares, PTCL, lower 11 paisa at Rs38.80 also on 3m shares.
Pakistan Oilfields followed them, up Rs10.60 at Rs336.50 on 2m shares and Hub Power, higher by Rs1.07 at Rs25.90 also on 3m shares.
DIVIDEND: Thal Industries, cash 100 per cent, plus bonus shares of 20 per cent; Dawood Lawrence, bonus shares, 10 per cent; and Capital Modaraba, six per cent.
