KSE Index 100, after its most amazing performance last week appears all set to capture the 8,000 post. Closing at 7,618 on Friday Index 100 is now only away by 380 points to what will be a landmark in the history of Karachi Stock Exchange.
When the market opens on Monday (13th April 2009), National Bank of Pakistan (NBP) would be SPOT and remain SPOT until Friday. All those investors who will hold their shares till the close of next Friday will be eligible for a dividend of Rs 6.5 per share and a bonus share of 20% against each share owned till Friday close. NBP share closed at Rs 101.59 on Friday.
In my opinion, NBP share should touch 110 at some point next week. Ideally, based on the payout at the end of the week it should close at 115. However, for all those who wish to sell the share next week and make a capital gain 110 is a good price.
If the share closes at 110 on Friday then after the payouts it will open next Monday at Rs. 83. Please note that MCB closed at approx. 171 on Friday 10 April 2009. I believe that if NBP closes at 110 then MCB will also make gains and close at 180 next Friday. Accordingly, next Monday we will see prices of 83 and 180 for NBP and MCB respectively.
If the above holds true then NBP will make immediate gains to reach 100 level to reduce the price difference with MCB.
It is a NBP week starting tomorrow. Play well and make money. Remember if NBP goes down a bit and closes at 100 levels on Friday then you should not dispose off this share. Hold it and get your Dividend and Bonus share because in that case it will open at 73 the following Monday which again is toooooo low for this share.
Please bear in mind that my recommendation is based on the assumption that the KSE 100 next week will either remain at par with last Friday's close or make gains. In case the Big players decide to play around with the market calling it profit taking or technical correction then the NBP share will have no control on its fate.
Best of luck for the next week which looks extremely promising.
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i am in absolute agreement with you...lets just keep our fingers crossed...cheers man...keep us posted...thanks
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