KARACHI, March 17: Stocks on Wednesday consolidated their previous gains despite a late profit-selling by leading punters followed by some disturbing reports from the tribal area in the backdrop of the military operation against foreign militants.
The KSE 100-share index posted a fresh fractional rise of 2.43 points at 4,982.29.
As widely predicted, the KSE 100-share index failed to breach through the barrier of 5,000 on hasty selling by the weak-holders followed by reports of heavy death toll in the Wana operation, analysts said.
It, however, appears to be the OGDCL's day as it stood firmly against the bear onslaught and did not allow the market to fall below the currently established higher level after absorbing all the selling offers. Cement shares followed it and so did some of the blue chips in auto and fertilizer sectors.
Dividend announcements by Al-Ghazi Tractors final at 200 per cent and an interim of 100 per cent already paid (previous 200 per cent) and cash of 250 per cent by Parke-Davis were on the higher side. But while the former failed to give positive response, the latter was well-received as was reflected by an increase of Rs19 in its share value.
The on-going operation to flush out foreigners from the tribal belt and reports of pitched battles between the frontier paramilitary forces and the foreigners and killing of about three dozen persons have a negative impact on the stock trading here, brokers said.
The slowdown in the market run-up amid fears of further clashes in Wana and their fall-out elsewhere worried investors some of whom stayed out to have an overview of the political situation before making fresh investment, they said.
The KSE 100-share index, which was supposed to hit the crucial level of 5,000 today was a bit shaky as leading bulls were in two minds about the developing scenario on the western borders.
It finally ended at around 4,982.29, up 2.43 points as compared to 4,979.86 a day earlier as some of the leading base shares ran into profit-selling after mid-session. Earlier, it hit the highest at 4,991, only nine points short of the target.
"The standoff on the western borders is expected to ease in the backdrop of reports of post-clash quiet," says an analyst. "There is a strong possibility of run over the 5,000 index level on Thursday."
The third one-dayer between Pakistan and Indian in Peshawar on Friday is expected to overshadow the military operation in Wana, and in between bulls will be in a position to push the index to the immediate target.
The selling in part was also attributed to unloading by some of the leading punters and speculators for betting on the outcome of Peshawar cricket match, some brokers claim. However, there was no change in the basic market fundamentals, including higher corporate announcements, which continue to be positive and may allow heavy unloading from any quarter, the brokers said.
Leading gainers were led by Sapphire Fibres, Honda Atlas, AKD Securities, Bata Pakistan, up Rs4 to Rs4.60 followed by IGI Insurance, Packages and Javed Omer, which posted gains ranging from Rs8 to Rs17.25.
Losers were led by Nestle MilkPak and Fateh Textiles, off Rs7.75 and 15.80, respectively, followed by Glaxo-SKF, Pak-Suzuki Motors, Millat Tractors, Fazal Textiles and Pakistan Resource Insurance, off Rs2 to Rs3.
Meanwhile, Bank Al-Falah has applied for listing of its share on the KSE and is expected to be well-received in the market after it opens for public subscription after the official approval.
Trading volume suffered a sharp contraction at 310m shares as compared to 365m shares a day earlier but the advancing shares maintained a strong lead over the losing ones at 224 to 180, with 61 shares holding on to the last levels.
OGDCL assumed the role of trend-setters for the second session in a row and led the list of most actives, up 70 paisa at Rs54.85 on 66m shares followed by FF Bin Qasim, steady 20 paisa at Rs20.55 on 29m shares, D.G. Khan Cement, higher by 65 paisa at Rs48.70 on 23m shares, Fauji Cement, firm by five paisa at Rs13.20 on 17m shares and Saadi Cement, higher by 70 paisa at Rs9.50 on 15m shares.
Other actives were led by Lucky Cement, easy 10 paisa on 11m shares, PTCL, unchanged on 10m shares, Hub-Power, up 15 paisa also on 10m shares, PIAC, firm by 10 paisa on 10m shares, and Maple Leaf cement, up 10 paisa on 9m shares.
FORWARD COUNTER: FF Bin Qasim came in for active support and rose by 35 paisa at Rs20.65 on 5m shares followed by PSO, easy 75 paisa at Rs286.35 on 3m shares, Hub-Power, up 10 paisa at Rs37.55 on 2m shares and PTCL and Dewan Salman, unchanged and off 20 paisa at Rs39.70 and Rs25.10, respectively, on 1m shares each.
DEFAULTER COS: Brisk trading was witnessed on this counter where most of the shares not only rose sharply higher, but also turned out large turnover under the lead of Quice Foods, up one rupee at Rs4.85 on 2.386m shares followed by Schon Modaraba, firm by 50 paisa at Rs2.10 on 1.670m shares.
Other actives were led by Suzuki Motorcycles, higher by Rs1.65 at Rs23,95 on 0.540m shares and Biafo Industries, higher by 60 paisa at Rs1.90 on 0.325m shares.
