KARACHI, April 13: Stocks on Tuesday passed through a mild technical correction as a section of leading investors took profits at the inflated levels but the underlying sentiment remained uppishly inclined owing to active support at the decline.
Leading analysts predict that the current run-up is not overdone as was reflected by the presence of strong support at the dips almost on all the pivotals, notably in auto shares amid reports that the government will ensure that the local industry will not be affected if imports of reconditioned cars were allowed.
An indication of this bull perception was reflected in the performance of the KSE 100-share index, which managed to finish well above the recently attained all-time peak level of 5,400 points.
At one stage, it was, however, off about 40 points in early trading but later after ruling either-way amid active bouts of buying and selling finally finished with a modest decline of 14.71 points at 5,429.12 as compared to 5,443.83 a day earlier. It should have finished with an extended gain had PTCL recouped its initial fall or sustained the overnight gains.
Other pivotals including National Bank, Hub-Power, Engro Chemical, Fauji Fertilizer and some others followed it and fell from the current highs amid active selling.
"The steep increase in the trading volume to 867m shares reflects that leading bulls and bears are out to outwit each other on price score," says a leading stock analyst "but whether or not the smaller groups of investors or day traders should follow them is a question no one ready to answer."
The situation may not be fraught with high risks but the meteoric rise of the index, higher badla rates and volume signals danger flashpoint may not be that far.
The fact that about 80 per cent of the total daily volumes were confined to about a dozen current favourites followed by sharp price flare-ups needing circuit breakers to contain further price increase shows both bulls and bears are playing safe and small investors may be a big casualty whenever the market takes dive.
But for the time being investors, big and small, are not inclined to take an overview of the market's statistical position before riding the bandwagon. No one is inclined to entertain bearish ideas at this stage and continue to inflate his stock holdings just on the line of institutional traders.
No one is in a mood to missing the rising market or an attractive bait of quick capital gains irrespective of the risk involved at the current higher levels.
Although minus signs dominated the list, some of the leading shares remained in strong demand and finished with fresh good gains under the lead of Atlas Honda, Colgate Pakistan and Dawood Hercules, up Rs10 to Rs15.05 followed by Pak Elektron, Pakistan Resource Insurance, Burewala Textiles, Dawood Cotton, Crescent Steel and National Foods, which posted gains ranging from Rs4.10 to Rs5.
Losers were led by Unilever Pakistan and Wyeth Pakistan, off Rs30 and Rs48 followed by Haroon Oils, National Refinery, Pakistan Refinery, IGI Insurance and Atlas Battery, which suffered fall ranging from Rs2.95 to Rs4.90.
Trading volume soared to 867m shares from the previous 782m shares but losers forced a comfortable lead over the gainers at 209 to 174, with 51 shares holding on to the last levels.
OGDC topped the list of most actives, up 15 paisa at Rs64.50 on 102m shares followed by Dewan Salman, higher 80 paisa at Rs28.10 on 93m shares, PTCL, off 50 paisa at Rs42.85 on 81m shares, MCB, up Rs2.30 at Rs63,10 on 77m shares and DG Khan Cement, off Rs2.20 at Rs55.10 on 62m shares.
Other actives were led by Maple Leaf Cement, higher by Rs1.30 on 60m shares, FF Bin Qasim, off 70 paisa on 55m shares, Lucky Cement, up 50 paisa on 46m shares, Sui Southern Gas, off 80 paisa on 45m shares and Nishat Mills, higher by 85 paisa on 42m shares.
FORWARD COUNTER: PTCL topped the list of actives, off 45 paisa at Rs42.95 on 10m shares followed by Dewan Salman, up 65 paisa at Rs28.05 on 9m shares, FF Bin Qasim, lower 50 paisa at Rs23.25 on 8m shares, MCB, up Rs2.55 at Rs63.60 on 8m shares and Sui Northern Gas, firm by five paisa at Rs73 on 4m shares.
DEFAULTER COS: Active trading was again witnessed in Standard Bank,lower 30 paisa at Rs9.35 on 0.621m shares followed by Biafo Industries, easy five paisa at Rs9.80 on 0.489m shares and Islamic Bank, off 40 paisa at Rs9.35 on 0.175m shares.
DIVIDEND: Fayzan Manufacturing Modaraba, interim at the rate of 2.5 per cent for the year ended March 31, 2004.
BOARD MEETINGS: First Tri-Star Modaraba, 2nd Tri-Star Modaraba, on April 14, IBL Modaraba, Agriautos Industries, on April 16, Modaraba al-Mali, Modaraba al-Tijarah, Sigma Leasing, on April 17, Fateh Industries, Fateh Sports, Punjab Oils, Diamond Industries, Shafi Chemicals, Arif Habib Securities, Fauji Cement, B.F Modaraba, Safa Textiles, on April 19, Pakistan Gum & Chemicals, Ittehad Chemicals, International General Insurance, on April 20, Pakistan National Shipping Corporation on April 21, National Refinery, Hub-Power and Askari Commercial Bank, on April 22.
