Stocks suffer modest fall as investors take profits
By Our Staff Reporter
KARACHI, Nov 22: Stocks on Monday turned mixed as a section of investors took profits at the inflated levels but the broader market performed credibly well on renewed short-covering on selected counters.
Weakness of the oil sector and some other blue chips weighed heavily against the underlying sentiment as bears outwitted bulls on more than one counters in the absence of institutional traders.
The KSE 100-share index suffered a modest fall of 17.61 points at 5,502.56 as compared to 5,520.17 at the last weekend as some of the leading base shares reacted from the recent highs under the lead of PTCL.
Higher carryover rates, which on last Friday soared to 14 per cent from the previous about nine per cent, was said to be the chief worry of investors and some of them indulged in selling to meet their delivery obligations.
On technical grounds also the market needed correction after having risen beyond its mandate both in the pre-Eid and post-Eid trading sessions on strong financial support, which came in the form of profit-selling from the weak holders and some leading investors.
"Political worries in the backdrop of opposition's anti-uniform drive did take their toll on some of the counters as jobbers and weakholders tried to square their long positions, the general perception is that the sailing on the stock market will remain pretty smooth on the strength of some other positive factors," some analysts fear. But some others said the current massive peace overtures by Pakistan to secure peace with India could well prove a sustaining factor behind any renewed run-up initiated by the financial traders or the bargain-hunters.
"The privatization of two mega state-owned units, PTCL and PSO, during the next couple of months could keep the market in a good faith", says a leading broker "having about 20 per cent weigthtage in the index, both may not allow the market to fall below the current levels.
The Privatization Commission has already invited Expressions of Interest (EOIs) by Jan 28, next year from the prospective investors. Leading gainers were led by HinoPak Motors, Colgate Pakistan, Gillette, Al-Abbas Sugar, Quetta Textiles, Sapphire Fibre, Gatron, Treet Corporation, and Dawood Lawrecnce, up by Rs3 to Rs5.45 followed by Berger Paints, Grays of Cambridge, BOC Pakistan, Zulfiqar Industries and Unilever Pakistan, up by Rs6.20 to Rs9.
Losers were led by Pakistan Services, Millat Tractors, Artistic Denim, Fazal Textiles, Bhanero Textiles, IGI Pakistan, Javed Omer, PSO, Shell Pakistan and EFU Life, which suffered fall ranging from Rs3.50 to Rs9.
Trading volume fell to 248m shares from the previous 336m shares but gainers maintained a comfortable lead over the losers at 185 to 173, with 44 shares holding on to the last levels.
Fauji Fertilizer Bin Qasim topped the list of most actives, up 60 paisa at Rs22.95 on 53m shares followed by PTCL, easy 15 paisa at Rs40.45 on 23m shares, Lucky Cement, higher 45 paisa at Rs38.95 on 15m shares, Nishat Mills, firm by 15 paisa at Rs54.25 also on 15m shares and DG Khan Cement, easy five paisa at Rs52.05 on 14m shares.
Other actives were led by Askari Bank, up one rupee on 13m shares, OGDC, lower 35 paisa on 12m shares, National Bank, easy 20 paisa on 11m shares, Bank of Punjab, off 15 paisa on 10m shares and Sui Northern Gas, easy 10 paisa on 9m shares.
FORWARD COUNTER: PSO came in for active selling in sympathy with its ready counter and fell by Rs3.54 at Rs263.71, while Engro Chemical and Fauji Fertilizer attracted good support and posted gains ranging from Rs1.15 to Rs2.
Among the volume leaders, Fauji Fertilizer Bin Qasim was leading, up 55 paisa at Rs.22.95 on 10m shares, PPL, lower 70 paisa at Rs119.90 on 7m shares and PTCL, off 24 paisa at Rs40.46 on 4m shares.
DEAULTER COS: Taxila Engineering led the list of actives, up one rupee at Rs12.25 on 0.126m shares followed by Crescent-Standard Bank, higher 20 paisa at Rs10.40 on 0.107m shares.
DIVIDEND: Fazal Textiles, cash 15 per cent, Islamic Investment Bank, right shares at the rate of 108 per cent, Pakistan International Containers Termicals, rights shares 18.80 per cent and 28.25 per cent on preference shares.
BOARD MEETINGS: Honda Atlas Cars, on Nov 24, Umer Fabrics, Nishat Chunian and Sui Northern Gas, on Nov 25.
