KARACHI, March 29: Stocks on Monday turned in a highly volatile performance as investors played on both sides of the fence in a heavily overbought market needing technical correction.
The KSE 100-share index shed 15 points but stood above the barrier of 5,100 at 5,103.06.
Leading bulls were, however, in no mood to leave the arena at this stage and may have an overview of the market's statistical positions after PIAC and Adamjee Insurance announce their working results for the last year on Tuesday.
After early rising by 36 points, the KSE 100-share index fell by the same amount later but late covering purchases at the dips allowed it to close partially recovered above the 5,100 point level. It was marked lower by 14.82 points at 5,103.06 as compared to 5,117.88 at the last weekend.
Corporate results announced so far, notably from the banks and some leading companies or due during the next couple of sessions including Adamjee Insurance and PIAC were on the higher side of the market perceptions and did not allow bears to indulge in profit-selling.
"The carryover business and volume at Rs25 billion and 500m shares were at a record high but investors held on to their positions rather than indulging in profit-selling for reasons best known to them", analysts said.
However, there appears to be no immediate possibility of big shake-out at this stage, technical corrections here and there notwithstanding as basic fundamentals continue to be bullish, they said.
Withdrawal of the army from the tribal areas after the end of operation launched to flush out foreign militants was also an aiding factor as some of the leading investors were back in the market.
"Low bank rate apart, the chief factor, which continue to sustain the current run-up was excess liquidity, which has virtually flooded the market in the absence of other profitable investment avenues", says a leading broker and predicted "chances of higher capital gains are still there, notably on the low-priced sector or where the dividend announcements are due".
Analysts said the current tempo of buying is expected to be accelerated during the next month as some of the leading shares including Bank Al-Falah and PIAC will float their shares for public subscription.
Both will be followed by mega issues including Pakistan Petroleum and Kot Ado Power Plant before the end of the current fiscal year ending June 30, 2004. Javed Omer again led the list of gainers, up by Rs35.50 followed by BOC Pakistan, Aventis, Grays of Cambridge, Central Insurance, EFF Life, after it announced 10 per cent cash and 10 per cent bonus shares, Jahangir Siddiqui & Co and is bank, Adamjee Insurance and HinoPak Motors, which posted gains ranging from Rs4 to Rs7.
Prominent losers included Pak-Suzuki Motors, Packages, Atlas Battery, Lakson Tobacco and National Refinery, off Rs4 to Rs7.55 followed by Kohat Cement, Gatron Industries, Shell Pakistan, Indus Motors and Engro Chemical, which fell by Rs2 to Rs2.80.
Trading volume was slightly above the previous figure at 559m shares, but losers forced a slight edge over the gainers at 185 to 177, with 53 shares holding on to the last levels.
OGDC topped the list of most actives, up by 95 paisa at Rs59.20 on 103m shares, followed by PIAC, off 45 paisa at Rs25.75 on 87m shares, after touching the day's peak level at Rs27.20 on rumours of 10 per cent bonus shares, Lucky Cement, up by Re1 at Rs33.50 on 54m shares, PTCL, lower 15 paisa at Rs40.60 on 29m shares and Dewan Salman, up by five paisa at Rs26.60 on 28m shares.
Other actives were led by FF Bin Qasim, lower 35 paisa on 22m shares, Sui Northern Gas, up by 40 paisa also on 22m shares, Fauji Cement, easy 10 paisa on 22m shares, Maple Leaf Cement, up by 25 paisa on 21m shares and D.G. Khan Cement, lower 40 paisa on 18m shares.
FORWARD COUNTER: PTCL remained under pressure and fell by 15 paisa at Rs40.85 on 4m shares followed by PSO, off Rs1.34 at Rs288.40 on 3m shares, Hub-Power, up 15 paisa at Rs37.30 also on 3m shares, Dewan Salman and FF Bin Qasim, unchanged and off 30 paisa respectively at Rs26.70 and Rs22.05 on 3m shares each. Engro Chemical fell by Rs2.20 at Rs100.50 on late selling.
DEFAULTER COS: Suzuki Motorcycles led the list of actives, up by Rs1.40 at Rs23.90 on 0.500m shares followed by Lafayette, higher by 40 paisa at Rs4.50 on 0.436m shares and Dandot Cement, easy 15 paisa at Rs7.50 on 0.269m shares.
DIVIDEND: Century Insurance, bonus shares at the rate of 15 per cent, EFU Life Insurance, cash 10 per cent, bonus 10 per cent, EFU General Insurance, cash 20 per cent, bonus shares in the ratio of 2:19, Nazir Cotton, right shares at the rate of 27.777 per cent.
BOARD MEETINGS: East-West Insurance, Metropolitan Life Assurance, on March 30, Silver Star Insurance, Glaxo-SKF on March 31 and Askari General Insurance, on April 2.
