950813

Bullish sentiment pushes

up stock values

RECORDER REPORT

KARACHI: Stock values finished higher on Sunday and the badla rate also showed a marked improvement from 2 to 4 percent, indicating that the sentiment remained quite bullish and follow-up support continued on all counters.

According to a stock broker, the market was stable throughout the session as buying surfaced in some underpriced sectors. Prices generally fluctuated between narrow ranges and the plus-minus ratio stood at around 2 is to 1. Trading activity remained thin, owing to the Independence Day holiday ahead.

"The steady rise in the market for the last couple of sessions indicates that now it is a buyer's market and relative calm in the city has raised hopes among the investors that good days are ahead," said an analyst.

The KSE index on the week's opening session moved up to 1829.59 from 1823.27 points, showing a rise of 6.32 points. After touching its lowest level of 1450 points in May, the market has rebounded sharply and almost 380 points have been recovered in nearly two and a half months. Total market capitalization after Sunday's rise has reached the figure at Rs 339 billion.

According to an analyst, one of the main reasons behind this improvement is the floatation of two new mutual funds in the market - Khadim Ali Shah Bukhari's Rs 400 million fund and First Capital Securities' Rs 150 million fund. The fresh injection of Rs 550 million in the market has steadily built the confidence of the small investors and before the end of the month the market may witness a rise of another 150 to 200 points.

The major gainers on Sunday were Zeal Pak (Rs 14), Century Insurance (Rs 7), Sapphire Textile (Rs 6), Shell (Rs 4), Century Paper (Rs 3.50), Adamjee Insurance (Rs 2), Abbott Laboratories, Ciba Ciegy, Dawood Hercules, National Refinery, Pilcorp and 8th ICP.

A significant shift in trading pattern was also witnessed and in preference to favourites jobbers and speculators opted for non-traditional issues, because their prices have touched rock bottom and are a good buy for long-term investment. The turnover was up to 10.789 million shares as against 8.9 million shares of Wednesday. Financial institutions made sizeable deals in Dhan Fibres, Faysal Bank, Nishat Mills, PTC, Dewan Salman, Hub Power and Lucky Cement, KESC, Ibrahim Modaraba, IGI Pak, Crescent Textile and 23rd ICP.

As the bull's grip tightened, out of the 366 issues called on the ready board during the trading session, about 183 issues landed in the plus territory as against 96 in the minus, while 87 remained unchanged.

Faysal Bank was the volume leader and on a business of 1.3 million shares improved to Rs 32.50 from Rs 32.25. Gainers outnumbered losers, in this sector, but Citicorp, 1st Capital Securities, Metropolitan Bank and Prime Commercial Bank fell by 50 paisa each, while KASB depicted a drop of 75 paisa and Union Bank eased by 65 paisa. The remaining scrips showed upward fractional changes while Javed Omar Vohara went up by Re 1.

LTV Modaraba, on a business of 1.103 million shares, remained unchanged at Rs 6.60. Losers led the counter. Financial Link Modaraba dropped by Rs 1.25 and First Tri-Star Modaraba fell by Rs 1.75 but Interfund Modaraba posted a fresh rise of Rs 1.25 and reached at Rs 10.

PTC, on a volume of 830,000 shares, remained pegged at its overnight level of Rs 35.25. PIAC, Pan Islamic (new lot), Tri-Star Shipping and PNSC showed a rise of 25 paisa, 75 paisa, 10 paisa and 40 paisa respectively.

Hub Power on a volume of 800,000 shares registered an increase of 35 paisa and finished at Rs 20.85. Four issues showed fractional downward changes, while Shell on a trading of 4,000 shares climbed up to Rs 221 from Rs 217 and National Refinery rose by Re 1 to Rs 60.

Dhan Fibres on transactions of 800,000 shares lost 25 paisa and settled at Rs 12.15. Ibrahim Fibres and Sunshine Cloth landed in the minus zone while National Fibres went up by Rs 3.50 and Polypropylene increased by Rs 1.25.

Engro Chemical finalized its half yearly accounts on June 30, 1995, and after earning Rs 222.668 million declared an interim dividend of 20 percent, Prudential D.G. House also declared an interim dividend of 10 percent on total half year's earnings of Rs 10.124 million.

BOND SECTION: FEBC moved up to Rs 104 from Rs 103.85 of Wednesday.

BOARD MEETINGS

Lever Brothers 15-8-95

Citicorp Bank 15-8-95

Pak Tobacco 15-8-95

LTV Modaraba 15-8-95

Brooke Bond 15-8-95

Ciba Giegy 16-8-95

ICI Pak 17-8-95

Pakistan Slag Cement 17-8-95