KARACHI, Aug 3: Stocks on Tuesday recovered from the overnight lows on strong buying by all and sundry aided partly by higher corporate announcements and partly to an attractive bait of capital gains.
The KSE index recovered about 56 points at 5,263, adding Rs14 billion to the market capital at Rs1,421 billion.
There was no looking back after the opening bell as equity-hungry investors continued to build-up long positions at the lower levels almost on all the counters. The market, however, witnessed a major shift in investor perceptions as they opted for low-priced second liners under the lead of Fauji Fertilizer Bin Qasim, which rose by Rs1.05 at Rs22 on 82m shares followed by PIAC, Fauji Cement and some others.
The KSE 100-share index did not breach the barrier of 5,200-point as was speculated earlier but remained in the plus column all through the session on massive short-covering in OGDCL at the attractively lower level.
The index finally finished up 55.69 points at 5,262.52 as compared to 5,206.83 a day earlier, reflecting the strength of the leading base shares. "I will not call it an inspired speculative buying despite an attack on the Balochistan chief minister just at the heels of the prime minister-designate", says a leading analyst "bulls hate to resist the bait of an attractively lower levels on some blue chip counters".
OGDCL led the market resistance to further decline on strong short-covering at the overnight lower level amid reports that its proposed global depository receipts (GDR) will not be offered at the lower rate to foreign investors as was widely rumoured in the market.
There were strong rumours in the market that 10 per cent GDR of the OGDCL will be offered to the foreign investors at a lower rate as compared to its ready quotations, which in turn triggered selling in it for the last couple of days.
"The market still may not be out of the danger zone as security concerns amid high alert are there", says a leading broker adding "but the market may thrive on positive fundamentals as the terrorist targets are high-profiled".
Dividend announcements are on the higher side and could fuel bullish sentiment in their respective sectors, he said. Strong institutional buying in Hub-Power ahead of its annual meeting next month, followed by short-covering in banking, fertilizer and some energy shares, notably KESC, Sui Northern and Sui Southern Gas remained in strong demand and added to the market strength.
Indus Motors and Gatron Industries, which rose by Rs7 and Rs9.80 were leading among the gainers followed by Din Textiles, Pakistan Refinery, ICI Pakistan, Zulfiqar Industries, Unilever Pakistan, Abbott Lab, Pak Elektron, Javed Omer and Atlas Honda, up by Rs3.25 to Rs6.
Losers were led by Aventis and Treet Corporation, off Rs6 and Rs10 respectively. Other prominent losers being Island Textiles, Lakson Tobacco, Jahangir Siddiqui Bank and Security Papers, which suffered fall ranging from Rs5 to Rs6.
Trading volume rose to 318m shares from the previous 189m shares as gainers held a comfortable lead over the gainers at 167 to 136, with 40 shares holding on to the last levels.
Fauji Fertilizer Bin Qasim topped the list of active, up by Rs1.05 at Rs22 on 82m shares followed by D.G.Khan Cement, higher by Rs1.65 at Rs57.15 on 29m shares, OGDCL, firm by 10 paisa at Rs62.80 on 26m shares, PTCL, lower five paisa at Rs42.75 on 16m shares, PIAC, higher by Rs1.35 at Rs15.35 also on 16m shares and National Bank, up by Re1 on 16m shares.
Other actives were led by Fauji Cement, up by Rs1.10 on 15m shares, Lucky Cement, higher by 75 paisa on 11m shares, Bank of Punjab, higher by Re1 on 10m shares and Sui Northern Gas, higher by Rs1.70 on 9m shares.
FORWARD COUNTER: Pakistan Petroleum came in for active support and recovered Rs1.90 at Rs106.25 on 24m shares followed by OGDCL, easy five paisa at Rs62.90 on 12m shares, F.F.Bin Qasim, higher by Rs1.05 at Rs22.10 on 10m shares, PTCL, lower 25 paisa at Rs42.85 on 9m shares and D.G.Khan Cement, up by Rs1.50 at Rs57.25 on 3m shares.
DEFAULTER COS: Trading on this counter also slightly picked up at the lower levels under the lead of Crescent-Standard Bank, up by 20 paisa at Rs9.80 on 0.128m shares. Dandot Cement also attracted active support and was quoted higher by 45 paisa at Rs9 on 0.151m shares, while others were modestly traded.
DIVIDEND: Al-Meezan Mutual Fund, cash 10 per cent, bonus shares 15 per cent for the year ended June 30, 2004.
BOARD MEETINGS: Pakistan Tobacco and Jahangir Siddiqui Bank, on Aug 9, Aventis, on Aug 11, Unilever Pakistan and Tri-Pack Films, on Aug 19.
