KSE index manages to stay above 5,400-point barrier
By Our Staff Reporter
KARACHI, Aug 23: Stocks on Monday suffered modest reaction as follow-up support turned shy in the absence of leading institutional traders and bargain hunters. The KSE 100-share index fell by eight points at 5,401.38 points in light trading.
The underlying sentiment in part was also influenced bearishly followed by reports of arrest of some of the terrorists who planned to attack GHQ and Parliament House a couple of days back.
But a leading analyst attributed the sluggishness just in the backdrop of last Friday's sustained run-up to a massive investment of Rs28 billion in the carryover market and allied fears including heavy selling at any time.
The KSE 100-share index managed to finish above the barrier of 5,400 at 5,401.38 as compared to 5,409.05 at the last weekend, off 7.67 points. The decline was restricted owing stray buying in some of the leading base shares.
Owing to a computer fault, trading was resumed a bit late, which had negative impact both on the turnover figure and the investor enthusiasm as was reflected by a steep decline in the trading volume.
Floor brokers said an interim cash dividend of Rs55 per share by Unilever Pakistan despite 25 per cent fall in its profits was in line with the market expectations, although most of them were worried over the next half year earnings. The EPS on a 50-rupee share was Rs48.40.
"I don't foresee any major change in the future market trend", predicts a leading analyst "There could be snap flutters after National Bank and MCB board meetings on Aug 30 and expectations of higher dividend but overall trend may remain dull".
Bulk of the support remained confined to the cement and energy sectors partly on reports of higher earnings and partly to some fresh positive developments on both the counters.
"The official whispering about building of a new dam could give the needed push to the cement shares and the inventory gains netted by the oil companies because of steep increase in world crude oil prices could significantly add to their earnings", brokers said.
Among the leading gainers, National Refinery and Glaxo-SKF, which rose by Rs11 and Rs13, respectively, they were followed by Rafhan Maize, Sitara Chemicals, Pakistan Refinery, Pakistan Engineering, Thal Jute, Colgate Pakistan, Packages, Security Papers, Unilever Pakistan and Gatron Industries, which posted gains ranging from Rs4 to Rs10.55.
Losers were led by IGI Insurance and Treet Corporation, off Rs13 to Rs15, Haroon Oils, Quetta Textiles, Javed Omer and Aventis, off Rs3.05 to Rs7.05. Trading volume fell to 116m shares from the previous 191m shares as losers forced a strong lead over the gainers at 191 to 125, with 43 shares holding on to the last levels.
Bank of Punjab was actively traded, up by 85 paisa at Rs67.15 on 19m shares followed by Fauji Fertilizer Bin Qasim, lower 50 paisa at Rs22.15 on 13m shares, National Bank, off 40 paisa at Rs72.75 on 9m shares, OGDC, easy 45 paisa at Rs66.10 on 8m shares, Maple Leaf Cement, up by 55 paisa at Rs37.90 on 7m shares, D.G.Khan Cement, lower 15 paisa at Rs56.40 on 6m shares and Askari Bank, easy 40 paisa at Rs80.15 on 5m shares and MCB, lower 20 paisa at Rs54.40 on 4m shares.
Other actives were led by PTCL, lower 15 paisa on 3m shares and PSO, off Rs1.60 also on 3m shares.
FORWARD COUNTER: On the forward counter, Pakistan Petroleum also came in for active selling and fell by Rs1.25 at Rs107.40 on 9m shares and so did OGDC at Rs66.21, off 44 paisa on 3m shares.
PTCL was marked by four paisa at Rs42.26 on 2m shares, F.F.Bin Qasim, lower 50 paisa at Rs22.20 also on 2m shares and Maple Leaf Cement, up by 10 paisa on 1m shares. Leading losers were led by PSO, which fell by Rs1.55 and Rs6.70 in both the ruling and forward September contract followed by Engro Chemical, lower Rs1.55.
DEFAULTER COS: Crescent-Standard Bank led the list of actives, up by five paisa at Rs11.65 on 2.456m shares followed by Biafo Industries, lower 40 paisa at Rs11.90 on 0.230m shares.
DIVIDEND: Unilever Pakistan, interim at the rate of 110 per cent, Dawood Hercules, interim 25 per cent, Glaxo-SKF interim bonus shares, 20 per cent, Pakistan Industrial & Commercial Leasing, right shares, 100 per cent.
