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Index shows fractional fall

KARACHI — After having risen to new highs, Karachi stocks yesterday took a technical pause on profit-selling in the leading shares but there were buyers at each dip, reflecting that the current run-up is yet overdone.

The KSE 100-share index early rose to session's high of 12,483.48, what the analysts called, spillover of overnight demand. Late selling, however, pushed it fractionally lower by 3.06 points at 12,430.16 points.

But on the other hand free-float 30-share index managed to finish with a fresh modest gain of 16.48 points as most of the industrial shares ended with fresh gains.

Analysts said National Bank along with other current favourites could lead the market advance in the coming sessions as it is expected to receive a tremendous boost from the bonus issue in the ratio of two for one share (2:1) by the Saudi based Bank Al Jazira.

National Bank has 6.5 per cent stake in it and its share holding in the Saudi bank will swell to 13.12 million shares. But some others said the boost will come in sympathy with increase in the share of Bank Al Jazira, which is currently ruling on the lower side. National Bank share did rise by Rs1.50 at Rs.250.90.

“The technical reaction was long overdue as the market was in a highly overbought position owing to persistent rise during the last couple of weeks but it was delayed because of advent of strong foreign buying,” analysts said.

However, the fractional fall of 3.06 points shows that the bulls are not inclined to take profits at the current levels anticipating the continuation of the bull-run.

“Analysts at Morgan Stanley may have more than one reason to predict near-term peak level of 14,000 points for the KSE 100-share index,” says a local analyst “they have based their assessment on the higher corporate earning, dividend yield and a stable economy.”

Viewed in this backdrop, the bulls just have a taken a technical pause eyeing hoping that the best is still to come, he added ruling out the possibility of mid-year market crash as it did last year after an identical run-up.

Among the top gainers, Fateh Textiles and Siemens Engineering were leading, up by Rs27.00 and 64.75, while losers were led by Rafhan Bestfoods and Murree Brewery, off by Rs38.95 and 4.40 respectively.

Trading volume showed a sharp decline but stayed well above the 300 million share mark at 309 million shares as compared to 369 million shares a day earlier but losers forced a strong leading over the gainers at 192 to 1486, with 43 shares holding on to the last levels.