KARACHI, Nov 19: Stocks finished the weekend session on a firm note despite badla-related profit selling as institutional traders remained active buyers at the current levels on selected counters, notably on the energy sector.
The morning session saw a good bit selling on the overvalued counters followed by reports of increase in the carryover rates but strong institutional buying on selected counters allowed the market to close on a steady note.
After having risen sharply higher during the last couple of sessions, stocks ran into stray weekend profit-selling but there was no dearth of buyers notably at the dips as near-term outlook appears bullish.
The KSE 100-share index posted a modest rise of 4.74 points at 5,520.17 as compared to previous 5,515.43. Earlier in the morning session it was quoted higher by 16 points and touched the session's peak around 5,530.
The slowdown in part was also attributed to some investor reservations about the package expected to be announced by the prime minister in his address to the nation on Friday evening.
But market talk of cut in power rates by 50 paisa per unit and some other incentives to boost industrial productivity could give the needed push to the already buoyant market when trading resumes next week, brokers said.
Bulk of the selling came in by way of portfolio adjustments rather than any negative news as some of the leading financial investors tried to roll positions from the overvalued shares to the low-priced ones but the focus remained on the high growth shares irrespective of their ruling prices.
"I think a section of institutional traders is in the market in a big way amid reports of a politically-motivated run-up", says a leading analyst "there appears to be no immediate threat to the current upward drive".
Rumours about the sell-off of PSO remained a dominant factor as along with it other leading energy shares, notably OGDC, for obvious reasons finished with an extended gain.
A section of leading investors also covered positions on the textile sector followed by reports of higher crop, competitive lint prices and a major breakthrough on the export front. Leading shares showed sharp gains under the lead of Ellcot Spinning, Artistic Denim and Sapphire Fibre.
In the cement sector, Lucky Cement remained a "hot buy" followed by reports that its management has undertaken a massive expansion programme costing Rs12 billion. Along with D.G. Khan Cement, and some others it remained in strong demand.
Among the leading textile shares, Nishat Mills, which came out with a cash dividend of 20 per cent, maintained its upward drive above the Rs50 mark but some analysts said the rate of payout is lower as compared to its profits.
PTCL on the other hand continued to derive strength from reports its partial disinvestment during the next six months and maintained its upward trend above Rs40 per share.
Plus signs again dominated the list, leading gainers being EFU Life, Javed Omer, Millat Tractors, and Treet Corporation, which posted gains ranging from Rs11 to Rs17.85 followed by Sapphire Fibre, Zulfiqar Industries, Noon Pakistan, Parke-Davis, Thal Jute, Artistic Denim and Arif Habib Securities, up by Rs4.45 to Rs6.95.
Losers were led by Shell Pakistan, which shed in part the overnight smart gain, off Rs6.20 followed by Clover Pakistan, Packages, Dawood Hercules, Atlas Honda and International Industries, off Rs2 to Rs3.30.
Trading volume rose further to 336m shares from the overnight's 321m shares as gainers maintained a fair lead over the losers at 179 to 129, with 52 shares holding on to the last levels.
PTCL topped the list of actives, up by 30 paisa at Rs40.60 on 48m shares followed by OGDC, unchanged at Rs66.20 on 32m shares, D.G.Khan Cement, lower 20 paisa at Rs52.10 on 30m shares, Fauji Fertilizer Bin Qasim, easy 35 paisa at Rs22.35 on 20m shares, and Lucky Cement, up by 20 paisa at Rs38.60 also on 20m shares.
Other actives included National Bank, firm 15 paisa on 18m shares, Askari Bank, higher by 85 paisa on 17m shares, Bank of Punjab, steady by 15 paisa on 16m shares, Pak PTA, lower 15 paisa on 15m shares and Nishat Mills, up by 30 paisa on 13m shares.
FORWARD COUNTER: PPL came in for stray selling and fell by 40 paisa at Rs120.60 on 14m shares followed by PTCL, up by 35 paisa at Rs40.70 on 9m shares, and OGDC, steady by 10 paisa at Rs66.40 on 4m shares.
Fauji Fertilizer Bin Qasim and D.G.Khan Cement fell by 35 and 20 paisa at Rs22.40 and Rs52.05 respectively. But largest decline of Rs1.40 was noted in Fauji Fertilizer and PSO, while Engro Chemical lost Rs1.05.
DEFAULTER COS: Trading on this counter remained relatively slow in the absence of strong demand and as a result, prices showed either-way fractional changes.
