KARACHI, April 8: Stocks on Monday showed mixed trend as leading investors kept to the sidelines most of the time apparently assessing the impact of presidential referendum on the market in the backdrop of possible boycott by the leading political parties. The KSE index was off 3.51 points at 1,846.67.
“The rigid positions taken by the both could lead to political polarization,” some leading floor brokers fear, adding “the entire exercise is feared to end up in law and order situation to which the market is essentially sensitive.”
While all the major political parties have rejected the referendum on the ground that it was unconstitutional and have boycotted it, the government claims there is no deviation and it will be held allowing the people to speak.
“A big showdown may not be around, investors dislike the idea of uncertainty, which will follow owing to rigid positions taken by the contenders,” stock analysts at the Moosani Securities fear.
The fall of the day’s turnover below the 100m share mark speaks of the investor perceptions about the futures shape of things to come and their investment priorities, they added.
But stock analysts at the Aziz Fidahusein & Co are not that skeptical about the future share business outlook despite a mixed reaction to the presidential referendum and hope the market will continue to find support around the index level of 1,850.
“What should be the new re-entry point,” is the question being mooted by the bulls and an answer to this question will set the future market trend, they add.
However, the general reaction is that the market could resume its upward drive in due course after investors fully digested the psychological impact of the coming referendum.
Leading business organizations, including the KSE high-ups have already welcomed the referendum, which will lead to the continuity of the existing economic and financial policies for another five years and there are predictions that the consolidation forces will be at work during the next couple of sessions to restore sanity to stock trading, some leading analysts believe.
After opening modestly higher, the KSE 100-share index finally ended off 3.51 points at 1,846.67, breaching the support level of 1,850 as compared to 1,850.18 at the last weekend, reflecting the weakness of leading base share, PTCL.
Big gainers were led by SK&F and Quetta Textiles, which posted gains ranging from Rs2.65 to Rs4, followed by 13th ICP, Ayesha Textiles, Singer Pakistan, Bata Pakistan, Transpak Corporation, Pakistan Tobacco, Dewan Textiles and many others, rising by Rs1.50 to Rs2.50.
Losers were led by Lever Brothers and Fateh Textiles, off Rs11 to Rs19.05. They were followed by Wyeth Pakistan, Rafhan Bestfoods and Nestle Milkpak, off Rs5 to Rs9.90. Shell Pakistan, Escort Bank, Attock Refinery an Gillette Pakistan also fell by Rs1.45 to Rs2.95.
Trading volume fell to 96m shares from the previous 115m shares as gainers held a comfortable lead over the losers at 132 to 109, with 47 shares holding on to the last levels.
Hub-Power topped the list of most actives, up 10 paisa at Rs23.95 on 21m shares, Dewan Salman, higher 30 paisa at Rs18.25 on 12m shares, PTCL, lower 20 paisa at Rs18.65 on 10m shares, FFC-Jordan Fertiliser, easy 10 paisa at Rs7.50 on 8m shares and ICI Pakistan, unchanged at Rs56.95 on 5m shares.
Other actives were led by Bank of Punjab, easy five paisa on 5m shares, PSO, firm by five paisa, also on 5m shares, National Bank, higher 30 paisa on 4m shares, Pakistan PTA, easy five paisa also on 4m shares and Sui Northern, lower five paisa on 3.813m shares.
FUTURE CONTRACTS: In line with the ready section, trading on the forward counter also showed a considerable decline owing to the absence of strong speculative activity. The total volume fell from the previous 11.254m shares to 5.347m shares.
However, Hub-Power and PTCL attracted alternate bouts of buying and selling and while the former managed to finish higher by 10 paisa at Rs24.15 on 2.314m shares, the latter fell 20 paisa at Rs19.80 on 1.012m shares. PSO was traded lower by 10 paisa at Rs156.90 on 0.768m shares. Others were fractionally traded.
DEFAULTER COMPANIES: Easier conditions prevailed on this counters on stray selling. Allied Motors and Crescent Spinning, tended lower by 15 and 25 paisa at Rs5.20 and 4.50 on 4,000 and 3,000 shares, respectively, while National Modaraba, was unchanged at Re0.80 on 2,000 shares.
DIVIDEND: Jamal Din Sugar Mills cash five per cent for the year ended Sept 30, 2001.
