KARACHI, Oct 1: Stocks on Wednesday maintained their recovery drive as leading investors made fresh short-covering on selected counters under the lead of PSO and PTCL but the turnover figure remained light. The KSE index recovered another 40.48 points at 4,067.82.
Dividend announcements notably by Grays of Cambridge and Treet Corporation were on the higher side at 150 per cent each but post-dividend selling pushed their prices sharply lower by Rs15.50 and Rs10 respectively.
But on the other hand 50 per cent bonus issue by Kohat Cement was well-received as is reflected by an increase of Rs3.50 in its share value and so did Ghani Glass, ended with an extended gain of Rs5.20 on 15 per cent cash and 35 per cent bonus.
The future direction of the market is, however, unclear as falling volumes indicate fading buying interest in the share business even at the lower levels for no apparent bearish reasons.
The KSE 100-share index posted a fresh rise of 40.48 points at 4,067.82 as compared to 4,027.34 a day earlier, reflecting the strength of leading base shares, notably PTCL and PSO.
During the last two sessions, it has recovered 80 points but falling volume reflects that the future outlook appears to be uncertain. In normal trading conditions, short-covering operations should have turned out massive daily turnover.
“Investors are in two minds about the direction of the market and are playing safe until a clear picture emerges both on the political and corporate fronts”, says a leading analysts “How the status quo being observed between the bulls and bears
will affect the current price line will be seen during the next
couple of weeks”.
Rumours about the announcement of the final bidding date for the sell-off of controlling shares of PSO to one of the three short-listed bidders and consequent strong buying in its share was claimed to be one of the major stimulating factor behind the extension of the overnight recovery, brokers said.
During the last two sessions, its share value has recovered Rs23 amid large volumes as leading investors are building up long positions hoping further increase after the final bidding date
was announced.
The sell-off of third tranche, 3.5 per cent shares of National Bank at a fixed price of Rs46 per share of Rs10 did not evoke much interest in its share.
Although bulk of the support originated from the financial institutions and bargain-hunters, some of the leading retailers also resumed their modest covering purchases.
Floor brokers said the trading activity is far below normal raising more than one questions “whether or not the liquidity-driven and lower interest rates upturn rally will continue during the next weeks”.
Plus signs maintained a fair lead over the minus ones after several lean sessions, leading gainers among them being Wyeth Pakistan, up Rs70 followed by PSO and Dreamworld, which rose by Rs9.55 and Rs10. Thal Jute, Millat Tractors, Pak-Suzuki Motors, BOC Pakistan, Clover Pakistan also rose by Rs5 to Rs5.60.
Losers were led by Pakistan Oilfields and Javed Omer, off Rs16.35 and Rs29.50 followed by Fazal Textiles, Shell Pakistan, Glaxo-SKF, Pakistan Refinery and IGI Insurance, off Rs5 to Rs8.95.
It was perhaps in this background that trading volume again fell to 232m shares from the previous 271m shares but gainers forced a slight edge over the losers at 168 to 151, with 37 shares holding on to the last levels.
PTCL again topped the list of most actives, higher by 55 paisa at Rs38.30 on 42m shares followed by PSO, up by Rs9.55 on 36m shares, Pakistan Oilfields, sharply lower by Rs16.35 at Rs323.70 on 15m shares, Lucky Cement, up Rs1.10 at Rs21.75 on 11m shares and D.G.Khan Cement, higher by 60 paisa at Rs35.50 on 11m shares.
Other actives were led by National Bank, up by 55 paisa on 10m shares, Fauji Cement, steady by five paisa on 9m shares, TRG Pakistan, up by 85 paisa on 7m shares, Maple Leaf Cement and MCB, easy five paisa and up by Rs2.35 on 7m and 6m shares respectively.
FORWARD COUNTER: PSO also came in for strong support on the forward counter and rose Rs8.60 at Rs289.10 on 16m shares followed by Hub-Power, higher 80 paisa at Rs36.65 on 10m shares, PTCL, up by 60 paisa at Rs38.35 on 6m shares.
Other actives included Sui Northern Gas, higher by 50 paisa at Rs38.10 on 1.321m shares and ICI Pakistan, higher by Rs3.55 at Rs81.30 on 1.281m shares, Engro Chemical and Fauji Fertiliser were also traded higher by Rs2.20 each and so did MCB, up by Rs2.50.
DEFAULTER COMPANIES: Dull trading was witnessed on this counter in the absence of leading investors. Prices showed fractional decline and rise amid light volume. Standard Bank was an exception, which rose by 10 paisa at Rs6 on 0.194m shares.
DIVIDEND: Southern Electric cash 15 per cent, Bestway Cement, 7.5 per cent, Ideal Energy, 25 per cent, Sui Southern Gas, 18 per cent, Leiner Pak Gelatine, 11 per cent, Moonlite Pakistan, five per cent, Constellation Modaraba, five per cent, National Modaraba, Investec Mutual Fund, Investec Modaraba, Investec Securities, Unity Modaraba, Plastobag, AKD Securities, NDLC, Dandot Cement, Gharibwal Cement and Saadi Cement, all passed over the dividend for the last year ended June 30, 2003.
