Index recovers 143 points on heavy buying in OGDCL
By Our Staff Reporter
KARACHI, April 22: A massive activity of 115m shares in OGDCL on Thursday put the market back on the rails after an initial bid by bears to extend overnight sell-off failed as bulls made active short-covering at the decline.
The KSE 100-share recovered 143 points and Rs35bn from the market capital.
It was the OGDCL's trading day as all roads led to it at the overnight steep decline evoking a lot of covering purchases on the other counters. It finished with a smart gain of Rs4.10 at Rs71.25. There was a panic in the market after the trading resumed in the backdrop of the massive overnight sell-off and investors were in two minds - how to react. The question was to join bears or await for the return of bulls. The mid-session adequately answered all their questions.
The KSE 100-share index finally finished partially recovered from the overnight fall of 159 points, up 142.87 points at 5,575.81 as compared to 5,432.94 a day earlier as all the leading base shares recovered from the early lows.
"It is now not a big problem to create panic in the market to induce selling from the weak-holders," analysts said. "Push or raise prices of OGDCL, PTCL and Hub-Power, which together hold a weightage of 50 per cent in the index, watch the fallout and its allied scare."
Its rise from the lows despite the fact that the market still needs a correction being still in an overbought position signals the "trick of the game lies in the trio," they said.
That was perhaps why skipping of widely expected interim dividend by Hub-Power could not halt the market's grand recovery, which otherwise should have been unmanageable. Hub-Power shares, however, ended with an extended fall on renewed selling.
The opening was, however, not that encouraging as bears dominated the trading earlier and pushed the KSE 100-share index further lower by 85 points and that at point bulls fought back after covering positions in the heavily indexed shares.
"I don't think bears have the guts to outwit bulls before the index level of 6,000," brokers said. "It could be anybody's guess after the target is hit." Plus signs again dominated the list under the lead of IGI Insurance, Glaxo-SKF, Javed Omer, Shell Gas and Dawood Hercules, which posted gains ranging from Rs8.30 to Rs12.10.
Other good gainers included National Bank, National Refinery, OGDCL and Adamjee Insurance, which also recovered by Rs4.10 to Rs7.65. Losers were led by Cherat Cement, Cherat Papers, Century Papers, Atlas Battery, National Foods and Clariant Pakistan and several others, off Rs3 to Rs7.50.
The trading volume showed a modest decline at 711m shares as compared to 718m shares a day earlier as the gainers forced a strong lead over the losers at 200 to 132, with 37 shares holding on to the last levels.
The most active list was topped by OGDCL, sharply higher by Rs4.10 at Rs71.25 on 115m shares followed by D.G. Khan Cement, unchanged at Rs60.15 on 60m shares, Hub-Power, lower 45 paisa at Rs35.85 on 59m shares, Fauji Cement, easy 65 paisa at Rs16.45 on 57m shares and PTCL, up 35 paisa at Rs43.95 on 56m shares.
Other actives included National Bank, sharply higher by Rs4.90 on 51m shares, MCB, up Rs2.95 on 35m shares, FF Bin Qasim Fertilizer, higher by 80 paisa on 24m shares, Lucky Cement, lower 1.50 also on 24m shares and Nishat Mills, up Rs1.90 on 23m shares.
FORWARD COUNTER: Hub-Power came in for fresh selling and fell by 35 paisa at Rs36.10 on 10m shares followed by PTCL, up 40 paisa at Rs44.20 on 8m shares, Sui Northern Gas, higher by 80 paisa at Rs69.30 on 5m shares, MCB, up Rs2.95 at Rs60.05 on 4m shares and Pak PTA, firm by 70 paisa at Rs18.90 also on 4m shares.
But big gainers were led by Fauji Fertilizer, Nishat Mills, ICI Pakistan, PSO and Engro Chemical, which posted gains ranging from Rs1.75 to Rs3.65 amid active trading.
DEFAULTER COS: Trading activity on this counter was relatively slow as investors remained busy in the ready section covering positions at the lower levels. Pangrio Sugar came in for active support and rose by 80 paisa at Rs4.40 on 0.180m shares followed by Standard Bank, higher by 50 paisa at Rs4.50 on 0.163m shares and Dandot Cement, up 30 paisa at Rs7.50 on 0.118m shares.
DIVIDEND: Rafhan Maize Products, interim at the rate of 70 per cent; and Jahangir Siddiqui Investment Bank, interim 15 per cent for the quarter ended March 31, 2004.
