KARACHI, March 11: Stocks on Tuesday maintained their recovery drive aided by the advent of active financial support at the lower levels followed by some positive developments on the Iraq war front after Russia announced to veto any pro-war vote on the UN resolution. The KSE 100-share index rose by 30.09 points at 2,482.01.
The sentiment in part was also influenced favourably by the prime minister’s statement that Pakistan will abstain voting on the pro-war Security Council resolution against Iraq.
Essentially, the market relied on the external positive news rather than its technical oversold position and investor enthusiasm to build up long positions at the prevailing lower levels.
The KSE 100-share index recovered another 30.09 points at 2,482.01 as compared to 2,451.92 a day earlier as all leading base shares came in for active short-covering.
Bulk of the support remained confined to about a dozen pivotals as investors were not inclined to go beyond the safe havens owing to Muharram holidays on Thursday and Friday.
Although Pakistan is still caught between the two equally difficult options — overwhelming popular opposition to pro-war vote and to placate the US if it needs its vote and in that case it may have to oblige.
Led by the financial institutions, retailers also followed their lead at the lower levels on the perception that the US attack on Iraq may not be that easy as the veto powers including Russia have also taken anti-war positions.
However, war worries were there as investors generally played safe partly because of local political uproar on the LFO and fears of a big showdown in tomorrow’s senate (upper house) oath-taking by the elected members. The opposition parties have already announced that they will not take oath under the amended LFO constitution.
Analysts said investors seem to closing following the course of local political events and the developing situation on the Iraq war, notably US threat to go alone if the new resolution was vetoed.
The falling volumes reflect the fading investor interest in the share business at least for the near-term as most of them are inclined to keep the wheels moving rather than making fresh long-term commitments, they said.
Fertilizer and gas shares and some blue chips on the other counters led the market on moderately active short-covering at the lower levels.
Top gainers were led by Shell Pakistan, which rose by Rs25.55 at Rs366.55 followed by Pak-Suzuki Motors after the reports of its board meeting on March 19 and expectations of higher dividend, Pakistan Refinery, Abbott Lab, and BOC Pakistan, which posted gains ranging from Rs4.40 to Rs6.25.
Other good gainers included MCB, 4th ICP, Gadoon Textiles, Sapphire Fibre, Pakistan Oilfields, Atlas Battery, Honda Atlas and Shafiq Textiles, up Rs1.60 to Rs3.75.
Prominent losers included Aventis Pharma, Dilon, PSO, Nestle MilkPak and Pak Reinsurance Company, off Rs2.05 to Rs10.
Trading volume showed a modest rise to 104m shares from the previous 80m shares, as advancing shares forced a strong lead over the losing ones at 149 to 75, with 44 shares holding on to the last levels.
Hub-Power led the list of actives, up 45 paisa at Rs3.35 on 32m shares, PSO, off Rs4.90 at Rs196.55 on 16m shares, PTCL, higher 35 paisa at Rs21.25 on 12m shares, Sui Northern Gas, up 95 paisa at Rs21.85 on 8m shares and Bosicor Pakistan (newly set-up oil refinery), firm by eight paisa at Rs12.25 on 7m shares.
Engro Chemical, followed them, steady by 20 paisa on 5m shares, MCB, higher Rs2.15 on 3m shares, FFC-Jordan Fertilizer, firm 20 paisa also on 3m shares, National Bank, higher 50 paisa on 2m shares and ICP SEMF, lower 20 paisa on 1.435m shares.
FORWARD COUNTER: After opening higher, what the dealers called, the extension of the overnight run-up, PSO came in for active profit-selling later and erased a good part of the previous gains, off Rs5.30 at Rs196.70 on 8m shares.
But on the other hand Fauji Fertilizer and MCB, came in for active support followed by reports of higher earnings and rose to close higher by Rs1.60 and Rs2.15 at Rs75 and Rs31.10 respectively.
Hub-Power led the list of actives, up 40 paisa at Rs35.30 on 11m shares followed by PTCL, up 30 paisa at Rs21.25 on 4m shares and Sui Northern Gas, higher 95 paisa at Rs21.85 on 1.140m shares.
DEFAULTER COMPANIES: Trading activity on this counter was relatively slow where shares of only nine companies came in for stray support. Suzuki Motorcycles, fell by 15 paisa at Rs7.50 on 5,500 shares, followed by Schon Modaraba, up 10 paisa at Rs0.65 on 3,500 shares and Hafiz Textiles, higher by 95 paisa at Rs6.50 on 3,000 shares.
