Buying in energy, cement stocks pushes KSE-100 past 8,000 pts

KARACHI: Bulls firmed their grip on the Karachi stock market on Tuesday with support from some positive news and announcement of healthy corporate earnings early this week, said analysts.

The KSE-100 Index moved up by 93.2 points, or 1.17 percent, to close at 8,066.17 points compared to closing level of 7,972.97 points in the previous session.

“The market continued the positive momentum, which was built in the latter half of yesterday,” said Tanvir Abid, head of research at Live Securities.

Investors took the financial results of Oil and Gas Development Company and Dera Ghazi Khan Cement positively. OGDC lifted sentiments on the back of higher than anticipated final cash dividend. OGDC has also been given exploration licences for two new blocks.

DG Khan’s financial year 2005 earnings also exceeded estimates by a big margin. OGDCL gained 1.6 percent while DG Khan Cement closed limit up.

Further a report citing the World Bank’s support for the construction of big dams in Pakistan boded favourably for cement stocks and generated interest among investors for buying cement scrips.

Hasnain Asghar Ali, an analyst at Aziz Fidahusein and Company, said the market had gained strength yesterday after initial adjustment. “That positive momentum continued right from the opening today,” he said. The 55-point positive opening found support, as the main index movers OGDC and PTCL finally joined the rally.

Although the unavailability of funds for leverage through Continuous Funding System (CFS) continues to hamper the index movement, improving fundamentals and healthy corporate earnings continued to tempt fresh funds for placements.

He said technically the index would continue to find support around 8,017 points to 8,010 points. Overhead resistance stays at 8,133 points to 8,137 points for the next session, he added. During the session 342 stocks were traded, value of 185 improved while 123 declined. Share value of 34 companies remained unchanged.

Trading volume increased by 4 percent to 304.6 million shares compared to 292.8 million shares traded during the previous session. Market capitalization moved up by 0.9 percent to Rs 2.3 trillion as against total capitalization of Rs 2.2 trillion at the end of previous trading session.

Dera Ghazi Khan Cement was at the volume leader’s position with trading of 41.7 million shares. Its share value moved up by Rs 3.45 to close at Rs 73.00 from opening of Rs 69.55. Oil and Gas Development Company Limited (OGDCL) was second with trade of 32.7 million shares and its stock price increased by Rs 1.75 from the previous level of Rs 110.50 to close at Rs 112.25.

Bank of Punjab (BoP) was third with trading of 24.95 million shares. The stock value moved down by Re 1.00 to close at Rs 108.40 compared to the opening at Rs 107.40. Stock price of Fauji Cement moved up by 80 paisas from opening at Rs 16.05 to close at Rs 16.85. Its 21.34 million shares were traded.

Share value of National Bank of Pakistan (NBP) remained at the previous level and closed at Rs 133.70 with trading of 19.8 million shares. Share price of Pakistan Telecommunication Company Limited (PTCL) increased by 10 paisas to close at Rs 64.75 compared to the opening level of Rs 64.65. Its 18.7 million shares were traded during the session.

At the futures counter September contract of DG Khan Cement was the volume leader with 10.73 million contracts changing hands. Its price moved down by Rs 3.45 to close at Rs 73.40 from the opening rate of Rs 69.95. On second position was OGDC-September. staff report