Investors continue to build long positions

THE KSE-100 share index last week consolidated well above the barrier of 13,000 points as investors continued to build up long positions on selected counters apparently not deterred by negative ruling on some of the important legal and political issues by the apex court.

By Our Correspondent

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Published: Sun 30 Sep 2007, 8:32 AM

Last updated: Sat 4 Apr 2015, 11:45 PM

Most analysts agree on one-point agenda that the future market outlook will be determined by the apex court ruling on the dual office of the president and his eligibility for the second presidential term.

"If the supreme court ruling is in favour of the president it will mean the continuation of the existing financial policies and if it is against him there could be anything," they said.

However, the negative fallout of opposition's enblock resignations from assemblies on the stock market will be known after they were tendered, they said.

Over the week dividend and bonus shares announced by most of the companies were on the higher side of the investor expectations but the direction of the market was set by the news from the legal and political fronts, they said.

That is perhaps why there were mid-week interruptions caused by some negative news but overall the market maintained a bold face despite some bad comments on some of the issues.

"The strength of the corporate sector based on higher cash payouts and bonus shares did not allow the market to fall prey of political manoeuvring," a leading analyst Faisal A. Rajabali said.

"Each fall caused by the negative political undercurrent was followed by a big rally reflecting the investor confidence in the future market outlook."

Trading on the share market resumed on a bullish note as leading bank, cement and other blue chips came in for strong support aided partly by the perception of continuity in the existing financial policies and partly to relative calm on the law and order front.

The KSE-100 share index posted a fresh sharp rise of 286.62 points at 13,351.79 as compared to 13,065.17 at the last weekend, signalling that its drive to next chart point of 14,000 has begun.

Leading base shares, including National bank, Engro Chemical, Lucky Cement, and PTCL were among the largest contributors to rise.

The free-float 30-share index on the other hand rose by 208.04 points at 15,915.17 as against 15,707.13 at the last weekend.

The share of Habib Bank, one of the largest banks in Pakistan came on the ready board of the Karachi bourse around Rs305 but failed to maintain their previous trading tempo and fell by Rs25 at Rs280, on selling but still well above their face value.

Soon after its public offering some two months back, its share was provisionally listed on the forward counter and was initially quoted around Rs340 on the higher side against the face value of Rs10 and a premium of Rs225 per share. However, trading was suspended because of some technical reasons.

The KSE sources said the clearing of the outstanding deals prior to suspension of trading was settled on September 26, providing it a fresh start on the ready counter.

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