KARACHI, Aug 11: Stocks on Wednesday failed to extend the last two sessions' run-up as investors shed their extra load in the cement and fertilizer sectors but major fall was averted thanks to the presence of support at the dips.
On the forward counter, Pakistan Petroleum came in for massive alternate bouts of buying and selling, hitting the lowest at Rs107.35 and the highest at Rs108.80, to close lower by 35 paisa at Rs107.80 on record volume of 112m shares. Bulk of the selling from the genuine investors was absorbed by the willing buyers who think it is a "best buy" at these levels.
Fears of big float from the carryover market kept investors at their toes all the time and weaker links among them adjusted their positions amid rumours that the current price pattern could undergo a major change.
The KSE 100-share index on the other hand gave Tuesday's repeat performance and after early rising by 25 points, it finished reacted by 15.00 points at 5,352.95 as compared to previous close of 5,367.95.
Late selling in OGDC and PTCL, which hold 32 per cent weightage in the index, took the entire market along with them into the minus column in low volume. "I don't think investors have the courage or the conviction to keep a status quo despite the fact that Finance Minister Shaukat Aziz may not win the Aug 18 election", says a broker "but the uncertainty preceding the deadline is already casting its shadows on stock trading".
But some others claim the current sluggishness has no relevance to the Aug 18 election, it is the overbought position of some of the leading stocks which is keeping investors at their toes all the time.
The initial run-up was attributed to active buying in OGDC and the subsequent selling was triggered by fears of an expected spillover of float from the carryover market.
Institutional support, however, figured prominently mostly at the dips in the pivotals, which did not allow the market to fall below the current higher levels. For the second session in a row, the overvalued cement shares and other blue chips including bank and fertilizer shares came in for active profit-selling and tended modestly lower.
Largest fall ranging from Rs10 to Rs33 were noted in Nestle MilkPak, Grays of Cambridge, EFU Life and Javed Omer, while Aventis, Ferozsons Lab, Atlas Honda suffered decline ranging from Rs5 to Rs8.
They were followed by Security Papers, Abbott Lab, Arif Habib Securities, Noon Sugar, International Industries, Al-Ghazi Tractors, and some others, off Rs3 to Rs5. Prominent gainers were led by New Jubilee Insurance, Pakistan Engineering, Colgate Pakistan, Jahangir Siddiqui & Co, Exide Pakistan, National Refinery and Central Insurance, up by Rs2.40 to Rs6.50.
Trading volume shrank to 167m shares as leading investors kept to the sidelines from the previous 315m shares as losers held a strong lead over the gainers at 202 to 100, with 57 shares holding on to the last levels.
OGDC was leading among the actives, easy 10 paisa at Rs65.25 on 17m shares, MCB, up by 60 paisa at Rs54.95 on 14m shares, National Bank, lower 15 paisa at Rs73 on 13m shares, PTCL, off 45 paisa at Rs42.65 on 11m shares, Maple Leaf Cement, lower Rs1.25 at Rs38.25 on 10m shares, Union Bank, up by Re1 at Rs32.80 also on 10m shares and D.G.Khan Cement, off 45 paisa at Rs56.50 on 9m shares.
Other actives were led by Chakwal Cement, up by 25 paisa on 9m shares followed by Sui Northern Gas, lower 20 paisa on 7m shares and Lucky Cement, easy 85 paisa on 6m shares.
FORWARD COUNTER: OGDC came in for modest support and after early fall managed to finish higher by five paisa at Rs65.55 on 6m shares followed by PTCL, off 45 paisa at Rs42.65, on the perception of lower profits after the recent cut in its consumer rates, D.G.Khan Cement, easy 50 paisa at Rs56.65 on 2m shares and Hub-Power, lower 70 paisa at Rs31.15 also on 2m shares.
DEFAULTER COS: Crescent-Standard Bank again came in for active support and rose by 15 paisa at Rs11.10 on 0.475m shares followed by Biafo Industries, higher by 15 paisa at Rs12.10 on 0.237m shares, Dandot Cement, up by 15 paisa at Rs9.60 on 0.138m shares and Crescent Spinning lower 20 paisa at Rs4.40 on 0.127m shares.
DIVIDEND: Aventis, interim cash at the rate of 20 per cent, Union Bank, bonus shares at the rate of 10 per cent.
