KARACHI, April 15: Stocks on Tuesday turned mixed as investors played on both sides of the fence indulging in alternate bouts of buying and selling apparently preparing for a big onward thrust. The index shed 4.77 points at 2,900.59, indicating that it could move either-way tomorrow.
Leading players may be divided over the future direction of the market but all agree that the index must test its next chart point of 3,000 points before the budget in June.
“Who will foot the bill of another 100 points or Rs25bn in the form of market capitalization appears to be the chief moot point among them but the consensus emerging is that financial institutions could do that,” one broker says. Already it had touched the high mark of 2954 points before falling to 2,500 points during the pre-Iraq war sessions.
The market’s either-way movement was also well-reflected in the KSE 100-share index, which early rose by about 24 points on overnight spillover demand but later profit-selling again pushed it down to close 4.77 points down at 2,900.59 as compared to 2,905.36.
Analysts said the fact that it did not breach the psychological barrier indicates that leading bulls liquidated in part long positions to take profits at the higher levels but are not inclined to leave the arena.
Some of the leading institutional traders also indulged in moping operations to line up funds to participate in tomorrow’s (Wednesday’s) central bank’s T-Bill auction, they said.
But the general perception is that the market as well as the index has the potential to rise further and may better its previous record of 2,954 points established early this year. The market capitalization has already achieved this distinction at Rs631bn on April 14, as compared to previous all-time peak level of Rs610 billion.
“Quarterly accounts of most of the leading companies are due before the end of the current month and indications are that they will give the needed boost to a volatile market,” says a leading broker. The board meetings, among others, of Reckitt Benckiser, Hub-Power, Shell Pakistan and some others are due on April 23 and 24 and that of Nestle MilkPak and Parke-Davis on April 21.
Some other, however, claim much will depend on the attitude of the institutional traders “whether or not they decide to remain in the market despite some bad news.”
Energy shares again led the market advance under the lead of Pakistan Refinery, which had gained about Rs100 during the last couple of months and currently its 10-rupee share is being quoted at Rs169.
Another interesting feature was that Shell Pakistan also maintained its upward drive on the strength of higher sales and was quoted above the Rs400 mark, an attractive rate for any 10-rupee share.
Other notable gainers included Unilever Pakistan, Arif Habib Securities, Treet Corporation and Pakistan Reinsurance Co, Rs5 to Rs20. They were followed by 13th ICP, Al-Hassan Textiles, Lawrencepur Woollen, Al-Abid Silk, Gatron Industries, New Jubilee Insurance, Shell Pakistan, Atlas Honda, Siemens Pakistan, Glaxo-SKF, Clariant Pakistan, Pakistan Paper Products and Gillette Pakistan, up by Rs2 to Rs4.50.
Losers were led by IGI Insurance, Habib Insurance, Noon Sugar, Attock Refinery, BOC Pakistan, Nestle MilkPak, PSO, which is being quoted spot, and Al-Ghazi Tractors, off Rs1.20 to Rs4.20.
Traded volume fell to 221m shares from the previous 259m shares but gainers maintained a firm level over the losers at 195 to 123, with 58 shares holding on to the last levels.
Hub-Power came in for active short-covering ahead of its board meeting despite the fact that its management has announced not to declare interim dividend, firm five paisa at Rs35.60 on 52m shares followed by PTCL off 30 paisa at Rs25.30 on 33m shares, Sui Northern Gas lower 50 paisa at Rs25.90 on 24m shares, PIAC(A), higher by 75 paisa at Rs10.80 on 20m shares and FFC-Jordan Fertilizer easy 15 paisa at Rs12.30 on 9m shares.
Other actives included ICP SEMF, up 40 paisa on 7m shares, Telecard, higher 40 paisa also on 7m shares, Nishat Mills, firm 45 paisa on 6m shares, Engro Chemical, steady 20 paisa also on 6m shares and Pak PTA, lower 30 paisa on 5m shares.
FORWARD COUNTER: Barring Nishat Mills, which posted a good gain of Rs1.20 at Rs20 on speculative buying, all other leading shares fractional either-way changes.
Hub-Power was actively traded, firm up five paisa at Rs35.70 on 11m shares followed by PSO, off 90 paisa at Rs210.10 also on 11m shares, PTCL, lower 15 paisa at Rs25.40 on 7m shares and Sui Northern Gas, off 45 paisa at Rs26 on 4m shares, Engro Chemical rose by 15 paisa at Rs82.40 on 1.426m shares.
DEFAULTER COMPANIES: Suzuki Motorcycles again led the list of active, up 90 paisa at Rs14.40 on 0.699m shares followed by Pangrio Sugar,steady by 10 paisa at Rs1.15 on 10,000 shares and Allied Motors, up 20 paisa at Rs11.20 on 3,000 shares.
BOARD MEETINGS: Fidelity Leasing Modaraba, Hajveri Modaraba, Fidelity Investment Bank and Pak-Gulf Leasing Co. on April 18, Sigma Leasing, Habib Modaraba, Golden Arrow Stocks and Trust Securities on April 19, Latif Jute, National Foods, Constellation Modaraba, Balochistan Wheels, Data Agro, IBL Modaraba, Allied Motors, Nestle MilkPak, Soneri Bank, Parke-Davis and Maqbool Company, on April 21, Faysal Bank, on April 22, Hub-Power, Reckitt and Benckiser, on April 23 and Shell Pakistan on April 24.
