KARACHI, Aug 10: Stocks on Tuesday failed to extend overnight run up as leading shares ran into profit-selling at the inflated levels and ended with clipped gains under the lead of cement and fertilizer sectors.
Energy shares on the other hand were, however, an exception, which remained in strong demand under the lead of OGDC and Pakistan Petroleum and evoked selective support on some other counters.
After having breached through the barrier of 5,400.00 earlier, the KSE 100-share index failed to sustain it and finished with a marginal rise owing to late-selling in some of the leading base shares at the higher levels.
It touched the day's peak level of 5,403.00 and lowest at 5,357.58 before closing at 5,367.95, showing a fresh gain of 3.99 points. Highly erratic movements reflects that investors were still shaky and were not inclined to take long positions on any of the counters in view of the law and order situation.
The earlier run-up was attributed to active buying in the energy sector followed by reports that Fauji Foundation, one of the country's leading industrial group, intended to bid for PSO and Ufone when they were offered for sale.
"But the early market run-up was accelerated by heavy short-covering in OGDC, and Pakistan Petroleum, which have been under pressure for the last couple of sessions in line with the general reaction", analysts said.
The perception that any increase in POL price in the coming fortnight in line with increase in world rates will benefit PSO and in turn to OGDC and Pakistan Petroleum evoked a lot of fresh buying in the energy sector including Sui Southern and Sui Northern Gas, they said.
Fertilizer shares, notably Fauji Fertilizer and Engro Chemical, eased modestly from the recent highs as the government had reduced urea prices by Rs18 per bag and banned its exports. The cut in prices was equally shared by the government and the producers.
The market had more than one positive reasons to shed its current hesitancy but general investors were awaiting the return of the prodigal son back in the arena before making fresh commitments.
However, some of the financial investors were in the market after several weeks' absence and lifted in bulk most of the energy shares at the current levels. Their presence was also noted in the cement sector, notably on the low-priced shares.
Nestle MilkPak and Security Papers were leading among the gainers, up by Rs10 and Rs8, followed by Fazal Textiles, Pakistan Cables, International Industries, Grays of Cambridge, Colgate Pakistan, Lakson Tobacco, Jahangir Siddiqui Co and Bosicor (right shares) higher in the range of Rs4.05 to Rs7.15.
Losers were led by Unilever Pakistan on selling followed by reports that its shareholders had approved to sell-off vegetable ghee business. It fell by Rs16. Other prominent losers included Jahangir Siddiqui Bank, Artistic Denim, Dawood Lawrencepur, Javed Omer, Aventis and Pakistan Services, off Rs3 to Rs4.
Trading volume rose to 315m shares from the previous 293m shares but losers managed to force a strong lead over the gainers at 184 to 132, with 54 shares holding on to the last levels.
OGDC topped the list of most actives, up by Rs1.05 at Rs65.35 on 56m shares, F.F.Bin Qasim, off 80 paisa at Rs21.50 on 35m shares, Maple Leaf Cement, lower 90 paisa at Rs39.50 on 29m shares, Chakwal Cement, steady by five paisa at Rs8.70 on 21m shares, National Bank, easy 15 paisa at Rs73.15 on 20m shares and Sui Northern Gas, up by 50 paisa at Rs18m shares.
Other actives were led by D.G. Khan Cement, off 85 on 13m shares, Lucky Cement, lower 50 paisa on 11m shares, Fauji Cement, easy 40 paisa on 10m shares and MCB, off 65 paisa also on 10m shares.
FORWARD COUNTER: Pakistan Petroleum, rose by 20 paisa at Rs108.15 after hitting the day's peak level of Rs109.75 on 35m shares followed by OGDC, higher Rs1.10 at Rs65.50 on 10m shares.
Other actives were led by F.F. Bin Qasim, off 75 paisa at Rs21.65 on 6m shares, Maple Leaf Cement, lower 90 paisa at Rs39.50 on 3m shares and Sui Northern Gas, up by 50 paisa at Rs64 on 2m shares.
DEFAULTER COS: Active trading was witnessed on this counter as half dozen shares came in for active support at the lower rates. Some others attracted selling.
Most active among them was Dandot Cement, easy 15 paisa at Rs9.45 on 0.483m shares followed by Crescent-Standard Bank, lower five paisa at Rs10.95 on 0.354m shares and Nazir Cotton, unchanged at Rs6 on 0.235m shares. Crescent Spinning was traded higher by 35 paisa at Rs4.60 on 0.129m shares.
BOARD MEETINGS: Abamco, BSJS Balanced Fund on Aug 13, Rafhan Bestfoods on Aug 16, Bata Pakistan on Aug 19.
