Unloading in energy sector clips gain on stock market
By Our Staff Reporter
KARACHI, April 27: Stocks on Tuesday failed to extend the early run-up as follow-up support turned shy in the absence of fresh guiding factors and heavy unloading in the energy sector, notably Hub-Power.
The KSE 100-share index finished with an extended gain of 10.64 points at 5,426.57 after having risen early to 5,499 points.
The second interim at the rate of 30 per cent by the PSO was not that bad but a section of speculators made it look so after indulging in hasty selling in it, making the omission of bonus shares an issue.
There was, therefore, a virtual scare among the small investors and the day-traders for the second day in a row who watched the battle of wits between the bulls and bears keeping off the market. Massive buying in OGDC failed to boost the investor morale.
As was predicted earlier, second interim payout from the PSO failed to put the market back on a sound footing and now all eyes are focused on OGDC, whose board meeting is due tomorrow. Indications are that it may announce second interim as was reflected by sharp price movements in its share for the last couple of sessions.
"It is a terribly disturbing to note that the index after having risen by 82 points at one stage, finished with a clipped gain of only 10.64 points," analysts said adding "what is in store and what will be the end of this grim fight between the bulls and bears and its negative fallout on the future stock trading is unclear at this stage."
It touched the peak of the day 5,498.96 and low 5,395.40 before closing at 5,426.63 but indications are that the falling carryover rates and free float from that counter is expected to restore sanity to stock trading during the next couple of sessions.
The early run-up was attributed to strong buying in most of the pivotals, notably OGDC and some cement shares at the lower levels and the later selling was caused by active post-interim dividend selling in the PSO and many other overvalued shares.
The board of Pakistan State Oil Company (PSO), which met here yesterday announced second interim dividend of 30 per cent making the total for the last nine months to 100 per cent but its share values fell sharply on late selling after having risen to Rs276.80. It ended around Rs270.50, off Rs4.25.
The dividend was in line with the analysts predictions but about six per cent fall in its earnings seems to have worked against its underlying sentiment and in a way on the broader market, brokers said.
Major gainers were led by Pak Elektron, Al-Abbas Sugar, Tri-Pack Films, Atlas Honda, Fazal Textiles and Rafhan Maize Products, up by Rs4.40 to Rs23, while losers were led by Security Papers, HinoPak Motors, Aventis, Javed Omer, EFU Life Insurance, National Refinery, PSO, Noon Sugar and Clariant Pakistan, off Rs4 to Rs8.
Trading volume rose to 644.992m shares from the previous 483m shares but losers maintained a strong lead over the gainers at 198 to 140, with 52 shares holding on to the last levels.
OGDC again topped the list of most actives, up Rs1.90 at Rs68.80 on 148m shares followed by Fauji Cement, firm by 20 paisa at Rs16 on 62m shares, PTCL, lower 30 paisa at Rs43 also on 62m shares, DG Khan Cement, up 75 paisa at Rs58.25 on 56m shares, Hub-Power, off Rs1.65 on 50m shares and Lucky Cement, up Rs2.55 at Rs38.20 on 43m shares.
Other actives were led by Chakwal Cement, off 65 paisa on 26m shares, National Bank, off Rs1.85 on 18m shares, Maple Leaf Cement, up 70 paisa on 17m shares and Sui Northern Gas, lower 40 paisa on 16m shares.
FORWARD COUNTER: PTCL attracted fresh selling at the higher levels, off 20 paisa at Rs43.10 on 8m shares followed by Hub-Power, off Rs1.78 at Rs34.20 on 7m shares, PSO, sharply lower by Rs4.10 at Rs270.40 on 3m shares and Sui Northern Gas, easy 19 paisa at Rs67.26 on 2m shares.
Fauji Fertilizers also fell by Rs2.75 at Rs126. May settlements also eased from the previous levels in sympathy with their counterparts in the April contracts.
DEFAULTER COS: Trading activity on this counter was relatively slow in the absence of strong support. National Asset Leasing was an exception, up 50 paisa at Rs3.10 on 0.299m shares followed by Asset Investment Bank, firm by 10 paisa at Rs4.50 on 0.243m shares and Standard Investment Bank, lower 15 paisa at Rs9.15 on 0.172m shares.
DIVIDEND: Pakistan State Oil, second interim, 30 per cent, PICIC, interim cash 12.5 per cent and right shares at the rate of 35 per cent.
