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KSE index touches 3-year high mark

RECORDER REPORT

KARACHI: The trend at the bourses was bullish on Thursday and the index touched three-year high mark where PTCL, Hubco and PSO stole the show as renewed buying from leading brokerage houses and financial institutions surfaced after every dip.

The market was on the uphill course for the third consecutive session with no respite in gains. The index which was 17 points short to reach the 1900 level would help further restore the confidence of the local investors. A leading trader said that the market surged because of the support from the leading brokerage houses and financial institutions. The foreign investors were still at bay and were reluctant to build sizable positions.

The bulls were in full control of the proceedings. The rise in the index was due to sharp appreciation in PTCL, Hubco, PSO and Sui Northern Gas. PTCL and Sui Northern Gas were up because traders opined that Privatisation Commission would soon announce a strategy to off-load their shares in the international markets. Hubco was up because of the report that the company had submitted a proposal to cut their tariff structure by 17.3 percent from 6.8 cents per unit.

The KSE-100 index registered a rise of 51.31 points or 2.80 percent to 1883.72 from 1832.41 of Wednesday. The volume rose to 276.081 million shares as against 256.103 million shares of Tuesday. The market capitalisation moved up to Rs 482.610 billion from Rs 469.517 billion of Wednesday.

The PSO was up on account of increase in furnace oil prices. Analysts said that the rise in furnace oil price would likely boost the earnings of the company by nearly Rs 250 million. They said that there were rumours in the stock market that soon the privatisation commission would publish an advertisement, seeking financial advisers for the PSO. The commission intend to sell around 20 to 30 percent shares of PSO soon, they said.

Mohammad Zubair Ellahi of KAB Securities said that the surge in oil marketing stocks was still on, carrying the entire market along. The index closing too was at three-year high and the tempo appeared set to push it further up.

He added that the broader term outlook still appeared positive but switching from high quotes to low valued shares was advisable.

Faisal Abbas of AHR Securities said that buying interest was prominent in all the active stocks as well as the blue chips item created an atmosphere of a bull run. The shares of 385 companies changed hands and the ready board was quite active, as the local investors had also started buying the ready items, following the institutions' trend.

He added that the buying interest in Shell Pakistan of the foreign institutions emerged which also helped the trading momentum to remain bullish throughout the day. Last but not least, a news regarding the raise in furnace oil prices also gave a boost to the market.

PTCL on a trading of 82.928 million shares gained 55 paisa to Rs 30.65, Hub Power moved up to Rs 28.35 from Rs 27.40 as nearly 79.482 million shares changed hands, PSO on a turnover of 30.942 million shares closed at Rs 244.50, higher by Rs 11.85, Sui Northern Gas on a business of 11.944 million shares moved up by 25 paisa to Rs 22.20 and ICI on a volume of 8.553 million shares gained 20 paisa to Rs 12.60.