KARACHI, March 30: Stocks on Tuesday passed through another consolidation phase as investors were in the process of having an overview of their inventories before resuming their journey beyond the index level of 5,100.
Dividend news, both from bank and insurance sectors, were on the higher side of analysts' predictions and have raised hopes that others whose annual announcements are due will also follow their lead.
The day's highlight was provided by a massive buying in OGDCL followed by rumours of second interim dividend and in the process, it crossed the barrier of Rs60 and finally managed to sustain it. About 139m shares changed hands, including some at the day's peak level of Rs61.20.
It was literally a repeat performance as the KSE 100-share index early rose to hit the intra-day peak level of 5,138, but lack of follow-through support from the institutional traders again pushed it down below the barrier of 5,100. Late short-covering in some of the pivotals, however, allowed it to finish fractionally higher at 5,103.18, up 0.12 points.
Positive changes in the brokers exposure rules (from 52 to 26 weeks average valuation) and the absence of financial selling in the current favourites and some growth stocks early allowed the market to scale new highs, but as the follow-up support remained shy for no apparent reasons, the closing was lower, signalling that the status quo was maintained.
Stocks analysts said deferment of dividend announcement by the board of directors of Adamjee Insurance and delay in the announcement of dividend by PIAC, whose board met on Tuesday had a negative impact on the underlying sentiment. However, higher dividend by some leading insurance companies and banks in part neutralized their negative impact on the trading.
"The market appears to be in a consolidation phase beyond the index level of 5,100 and may take some more days to chalk out its future course of action," they said, adding "one thing is, however, certain there may not be going back from the current levels."
Higher carryover rates and volume, which may touch a high mark of over Rs25, worry weak-holders on the perception they may not be able to absorb the shock of a major shakeout if big ones opt for unloading."
Minus signs again dominated the list under the lead of Siemens Pakistan, off Rs16.50. Other prominent losers included Aventis, National Refinery, Dawood Cotton, Honda Atlas, Pak-Suzuki Motors, Clover Pakistan, Pakistan Oilfields, KSFerozsons Lab and Central Insurance, off Rs2.50 to Rs6.
Some of the leading shares on the other hand maintained their upward drive and posted fresh gains ranging from Rs7 to Rs38.20 for HinoPak Motors, Nestle MilkPak and Javed Omer. Other prominent gainers were led by Packages, Clariant Pakistan, Bengal Fibre, Habib Insurance, PICIC, Jahangir Siddiqui Company and its bank and Gatron Pakistan, up Rs4.30 to Rs8.
Trading volume fell further to 488m shares from the previous 559m shares as losers held a modest lead over gainers at 199 to 170, with 63 shares holding on to the last levels.
OGDCL topped the list of most actives, up Rs1.50 at Rs60.70 on 139m shares followed by D.G. Khan Cement, higher by 95 paisa at Rs51.05 on 47m shares, Dewan Salman Fibre, steady by 10 paisa at Rs26.70 on 47m shares, Lucky Cement, lower 20 paisa at Rs33.30 on 31m shares and Sui Southern Gas, up 15 paisa at Rs33.15 on 20m shares.
Other actives were led by Adamjee Insurance, off 80 paisa on 20m shares, PTCL, unchanged on 16m shares, PIAC, lower 50 paisa on 14m shares, Sui Northern Gas, up 30 paisa also on 14m shares and Fauji Cement, easy 15 paisa on 12m shares.
FORWARD COUNTER: Dewan Salman came in for active support and rose by 10 paisa at Rs26.80 on 6m shares followed by PTCL, lower 10 paisa at Rs40.75 on 3m shares, PSO, off Rs1.20 at Rs287.20 also on 3m shares.
Sui Northern Gas and FF Bin Qasim, rose and fell by 20 and 30 paisa at Rs59.45 and Rs21.75, respectively, on 2m shares each, while others were modestly traded mostly on the lower side.
DEFAULTER COS: Active trading was witnessed on this counter where some of the leading shares came in for fresh support at the lower levels. Leading among them being Apex Fabrics, up 10 paisa at Rs2.35 on 0.137m shares.
Standard Bank and Suzuki Motorcycles on the other hand came in for stray selling and fell by 10 and 65 paisa at Rs7.90 and Rs23.25 on 0.132m and 0.174m shares, respectively.
DIVIDEND: Bank al-Habib, cash 10 per cent, bonus shares 25 per cent; New Jubilee Insurance, cash 15pc, bonus shares 30pc; Habib Insurance, cash 25pc, bonus shares 30pc; Business and Industrial Insurance, right shares 10pc at 40pc discount, subject to official approval; Crescent Leasing, right shares of 35pc at a premium of Rs5 or Rs15 per share; Masood Textiles, right shares of 50pc at a premium of Rs10 per share; Rafhan Bestfoods and New Jubilee Life Insurance, both nil for the year ended December 31, 2003.
