Stocks gain 243 points on impressive year-end rally

KARACHI: The KSE 100-share index on Monday staged a strong rally, up three per cent or 243 points, consolidating well above the crucial barrier at 9,280.16 and a leading analyst Ahsan Mehanti says it could be the beginning of the year-end portfolio adjustments aided by spillover demand from Dubai bourse.

He did not rule out the possibility of active Dubai-based support encouraged by positive news of reported end of Dubai World episode and rebound staged by the bourse there. Some of the Dubai-based shares, notably PTCL, and Bank AlFalah led the list.

The price flare-up was across the board led by the banking sector under the lead of MCB, Habib Bank, Bank AlFalah and some others, on the perception that the apex court may order the recovery of written-off loans, which would greatly influence their financial positions, another leading analyst Hasnain Asghar Ali predicts.

Other leading shares, which in some cases faced upper locks, included Engro Chemical, Attock Petroleum, Universal Foods, Colgate Pakistan and PSO, OGDC, Pakistan Oilfields, Millat Tractors and some others. Sellers, however, kept to the sidelines amid rumours that prices could rise further being in an oversold position.’

‘What seems to have given credence to a sustained year-end run-up was the revival of foreign buying on the leading oil shares and selected stocks such as Engro Chemical, and some leading auto shares,’ analyst Faisal A Rajabali Husain said.

He said investors seem to be in an upbeat mood since last week as positive news both from the law and order and corporate fronts followed in quick succession allowing investors to follow the rising market trend and opening robust rally reflects that they ‘now mean business.’

There could be technical corrections here and there in between, but the market is expected to close the current year on bullish note, some other analysts believe.

Leading gainers were led by Wyeth Pakistan and Millat Tractors, up by Rs45 and 18 followed by Habib Bank, Adamjee Insurance, EFU Life, MCB, Attock Petroleum, PSO, Shell Pakistan, Pakistan Oilfields, Dawood Hercules, Engro Chemical, ICI Pakistan, Service Industries, Colgate Pakistan and Universal Foods, which posted gains ranging from Rs5.08 to 13.99.

Prominent losers included Fateh Textiles and Siemens Pakistan, off Rs26.85 and 18.88. others, which also showed sharp fall, included PECO, KSB Pumps, Gillett Pakistan, Fazal Textiles and Nestle Pakistan, lower by Rs3.06 to 8.

Traded volume rose to 171.859m shares from the previous 117m shares as gainers held a strong lead over the losers at 271 to 122, with 15 shares holding on to the last levels.

Bank AlFalah topped the list of actives, firm by 54 paisa at Rs14.34 on 24m shares followed by J.S. & Co, up Rs1.14 at 31.77 on 12m shares, PTCL, higher by 84 paisa at 17.65 on 11m shares, Bank of Punjab, higher by one rupee at 19.04 also on 11m shares, Arif Habib Bank, firm by 22 paisa at 6.80 on 10m shares, Nishat Mills, higher by Rs2.99 at 67.96 on 7m shares and Arif Habib Securities, up Rs1.72 at 48.08 on 6m shares.

NIB Bank followed them; steady 24 paisa at 5.16 on 6m shares, Engro Chemical, sharply higher by Rs8.15 at 185.11 on 5m share and Pak PTA, firm by 22 paisa at 7.23 also on 5m shares.

FUTURE CONTRACTS: Nishat Mills led the list of actives on this counter, higher by Rs2.72 at 67.85 on 1.113m shares followed by OGDC, up Rs2.40 at 108.08 on 0.299m shares and Bank AlFalah, firm by 54 paisa at 14.37 on 0.244m shares.

MCB followed them, sharply higher by Rs10.23 at 217.34 on 0.212m shares and PTCL, higher 86 paisa at 17.70 on 0.144m shares.

DEFAULTER COS: Steady trend was witnessed on this counter as most of the undervalued shares ended fractionally higher under the lead of Pangrio Sugar, Suhail Jute, Glamour Textiles, and Mustehkam Cement, higher by 34 paisa to Rs1.54.

Japan Power again led the list of actives, unchanged at Rs1.69 on 0.101m shares followed by Jubilee Spinning, steady by 67 paisa at Rs4.67 on 22,000 shares and Quice Foods, easy nine paisa at 1.01 on 5,000 shares.