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KARACHI, Feb 12: Stocks on Tuesday came in for renewed selling and finished fractionally lower as reports of higher carryover charges inspired fresh selling from jobbers and weak-holders at the still attractively higher levels, but there were buyers at the dips. The index was off 24 points or 1.34 per cent.
But some leading floor brokers claim it was a tactical selling to push prices down in anticipation of “positive news about the president’s US visit” and then to cover positions at the lows. Barring few, price changes were mostly fractional on all the counters.
“The technical correction was overdue, but the timing is not appropriate,” says a member of the KSE, adding “the president’s post-US visit sessions could have been the ideal ones.”
The KSE 100-share index was off by another 23.83 points at 1,751.55, as all leading base shares attracted fresh selling under the lead of PTCL and Hub-Power.
However, all was not bad with the broader market as some of the pivotals did not follow the market’s general trend under the lead of textile shares, although distinct weakness of the energy shares, notably PSO and Shell Pakistan worked against the sentiment.
Engro Chemical, however, did not follow the market’s general line of action and remained under speculative squeeze for the second session in a row, rising by another Rs5.75 at Rs82.65. It has rise by Rs22 during the last three sessions, leaving far behind its immediate competitors.
“The selling in part was also inspired by the big ones to push prices lower ahead of president’s meeting with Bush and then to buy at the dips,” floor brokers said.
Market talk of a fresh aid package of $600m, increase in textile export quota and cut in tariffs on textiles are said to be some of the major trade points of the agenda of talks with the US president, they claimed.
There is nothing to suggest that the current run-up is overdone as the basic fundamentals continue to be bullish and bulls will be back after the process of consolidation is completed.
“Investors are awaiting the outcome of president’s US visit,” says a leading stock analysts, adding “if all goes in line with market perceptions there could be a further boost to stock trading.”
Most of the leading stock analysts are eying the index level and as the developing financial scenario is unfolding itself the figure appears not very ambitious, they add.
Minus signs again dominated the list despite the fact that there was a strong buying at the dips on the blue chip counters, notably where dividend are overdue.
Siemens Pakistan and Shell Pakistan were leading among the losers, off Rs10 and Rs12.05, respectively, followed by Adamjee insurance, Dewan Salman, Babri Cotton, PSO, Pakistan Oilfields, ICI Pakistan, Cherat Papers and Lever Brothers, which suffered decline ranging from Rs1.05 to Rs4.
Engro Chemical and Grays of Cambridge, which rose Rs5.75 and Rs10.00, respectively, were leading among the gainers. Others good gainers were led by PICIC Commercial Bank, Sapphire Textiles, Rupali Polyester, Attock Refinery, Crescent Steel, Singer Pakistan, Shezan International and Tri-Pack Films, up one rupee to Rs2.40.
Trading volume showed a fall of 4 million shares at 281 million share as losers maintained a fair lead over the gainers at 106 to 90, with 37 shares holding on to the last levels, out of 233 actives.
Hub-Power led the list of most actives, lower 30 paisa at Rs26.35 on 130m shares followed by PTCL, easy 35 paisa at Rs19.30 on 69 shares, Engro Chemical, sharply higher by Rs5.75 at Rs82.65 on 16m shares, PSO, off Rs3.10 at Rs133.90 on 11m shares and Sui Northern, lower 45 paisa at Rs14.05 on 10m shares.
Other actives were led by Fauji Fertilizer, off one rupee on 6.894m shares, KESC, lower 65 paisa on 4.674m shares, Maple Leaf Cement, firm by 15 paisa on 4.311m shares, Dewan Salman, off Rs1.45 on 2.900m shares and D.G. Khan Cement, lower 65 paisa on 2.663m shares.
FUTURE CONTRACTS: Heavy fresh buying in Engro Chemical featured the trading on the forward counters where Dewan Salman, Fauji Fertilizer, and PSO ended with fresh fall ranging from Rs130 to Rs3.50 at Rs15.50, 51.80 and Rs134, respectively, while Engro rose by another Rs5.75 at Rs83.10 on 0.352m shares.
Among the volume leaders, Hub-Power was again leading, lower 30 paisa at Rs26.55 on 6.464m shares followed by PTCL, also down by the same amount at Rs19.40 on 1.724m shares.
DEFAULTER COMPANIES: Colony Textiles came in for modest covering purchases and was quoted higher by 50 paisa at Rs12 on 7,500 shares followed by Norrie Textiles, easy five paisa at Rs0.50 on 2,000 shares and Crescent Board, lower 10 paisa at Rs2.90 on 1,000 shares.
NATIONAL BANK: Its shares also followed the market’s general trend and was quoted lower by 70 paisa at Rs18.55 on about 4m shares.
DIVIDEND: Kohinoor Weaving, cash 60 per cent, Burewala Textiles, final 20 per cent, Nakshbandi Industries, 7.5 per cent, Crescent Textiles 28 per cent, Lawrencepur Woollen, interim 30 per cent, Union Leasing, interim 10 per cent, Habib Insurance cash 40 per cent, EMCO Industries, right shares at the rate of 33 per cent at a discount of Rs5 per share and Platinum Insurance, nil.
BOARD MEETINGS: Bawany Air Products, on Feb 13; Cherat Papers, Bank Al-Habib, Ittefaq General Insurance, Saudi Pak Leasing, on Feb 14; Data Agro, Fazal Textiles, Cherat Cement, Feb 15; Alhamd Textiles, Buxly Paints, Saitow Spinning, First Habib Modaraba, Crescot Mills, Feb 16; Khadim Ali Shah Bukhari and Co, Latif Cotton, First Paramount Modaraba, Indus Fruit Products, Ahmad Hassan Textiles, Dawood Leasing, Ideal Spinning on Feb 18; First General Leasing, First Hajveri Modaraba, First Fidelity Leasing Modaraba, Sindh Abadgar’s Sugar, Clover Pakistan, Fidelity Investment Bank, Atlas Battery, Colgate Palmolive Pakistan on Feb 19; Sanghar Sugar Mills on Feb 20, Pakistan Venture Capital Feb 21, and Faysal Bank on Feb 27.
