Index loses another 33 points amid volatile trading
By Our Staff Reporter
KARACHI, Aug 24: Stocks on Tuesday again turned in a volatile performance as investors were not inclined to take long positions on any of the counters in the absence of financial institutions.
The KSE 100-share index shed another 33.15 points at 5,368.23.
In the backdrop of continued absence of leading players from the market for unknown reasons, short-term dealers and jobbers were in search of trend-setter but failed to find for the last couple of sessions owing perhaps to negative signals from the carryover market.
Massive investment of about Rs27 billion and higher volume in the carryover market did worry investors as unloading by the weakholders to meet their delivery obligations could push prices further lower in the coming sessions.
After hitting the day's low of 5,358 points at one stage, the KSE 100-share index managed to finish well above this level at 5,368.23, off 33.15 points. Earlier, in the session it rose to day's peak level of 5,421.00 aided by active buying in the energy and cement sectors.
An either-way movement of 63 points reflects the volatility of the market caused apparently by the nervousness of investors. But the important destabilizing factor was the absence of strong demand from the financial institutions, which were keeping to the sidelines for the last couple of sessions apparently anticipating further fall in prices.
"Their pre-determined lower levels may still not have reached," one broker said adding "the perception is massive free float could find its way into the market during the next couple of days, pushing prices further lower".
Both the lower levels of most of the current favourites together with upcoming dividend announcements from some of the leading companies, notably Pakistan Petroleum, Bank of Punjab, which has assumed the role of active scrips amid persistent price flare-up and Bank Al-Habib during the next couple of days were expected to generate a good interest.
Fertilizer shares also came in for active support followed by reports that the government would not allow the import of fertilizer as the local production is enough to meet the demand of the farm sector.
Prominent gainers were led by Lakson Tobacco, Unilever Pakistan, National Refinery, Colgate Pakistan, and IGI Insurance, which posted gains ranging from Rs8 to Rs19.50. Murree Brewery, BOC Pakistan, Pakistan Engineering, and National Foods also rose by Rs4.05 to Rs6 and so did many others.
Losses on the other were mostly fractional barring Nestle MilkPak, which suffered a sharp decline of Rs20, followed by Clover Pakistan, Glaxo-SKF, Pakistan Services and Sitara Chemicals, which fell in the range of Rs3 to Rs5.
Trading volume showed a modest increase at 159m shares as compared to 116m shares a day earlier but losers maintained a strong lead over the gainers at 212 to 100, with 41 shares holding on to the last levels.
National Bank, which came in for active selling led the list of actives, off Rs2.20 at Rs70.55 on 29m shares followed by Fauji Fertilizer Bin Qasim, lower 55 paisa at Rs21.60 on 18m shares despite reports that the Sui Southern Gas Company has promised to supply it gas, OGDC, off 50 paisa at Rs65.60 on 16m shares, Bank of Punjab, easy 15 paisa at Rs67 on 12m shares and D.G.Khan Cement, lower 80 paisa at Rs55.60 on 7m shares.
Other actives were led by Fauji Cement, easy five paisa on 6m shares, PSO, up by 60 paisa also on 6m shares, TRG Pakistan, off 45 paisa on 6m shares, Maple Leaf Cement, lower 20 paisa on 5m shares and Askari Bank, off 75 paisa also on 5m shares.
FORWARD COUNTER: Pakistan Petroleum came in for renewed selling and shed another Rs1.45 at Rs105.95 on 19m shares followed by OGDC, lower 61 paisa at Rs65.60 on 4m shares, National Bank, off Rs2.10 at Rs70.70 on 4m shares, F.F.Bin Qasim, lower 60 paisa at Rs21.60 on 3m shares and PTCL, easy 20 paisa at Rs42.06 on 2m shares.
DEFAULTER COUNTER: Barring Crescent-Standard Bank, which came in for active selling at the overnight higher levels and fell by 45 paisa at Rs11.20 on 0.432m shares. All others were fractionally traded.
BOARD MEETINGS: Askari General Insurance, Crescent Star Insurance, Bank of Punjab, on Aug 26, PICIC, Shaheen Insurance, Crescent Steel, Pak-Suzuki Motors and Saudi Pak Leasing, on Aug 27, Premier Insurance, Crescent-Standard Bank, Muslim Insurance, Ahmad Hassan Textiles, Pakistan Services, on Aug 28, Bank Alfalah, Attock Cement, on Aug 29, Silver Star Insurance, National Bank, Wyeth Pakistan, Muslim Commercial Bank, Trust Bank, Atlas Investment Bank, Suzuki Motorcycles, American Life Insurance and Punjab Modaraba, on Aug 30, Crescent Leasing and Hub-Power on Sept 2.
