KARACHI, April 7: Stocks on Thursday resisted fresh fall aided by active short-covering in most of the blue chips under the lead of energy shares and showed good rallies but there are still some doubts in investors’ mind about the market’s future outlook. The KSE 100-share recovered 171 points at 7,784.34. Lower volumes reflect that general investors are still conspicuous by their absence and until they resume normal trading the bulk of support would remain confine to half a dozen pivotals.
Alone on technical grounds, the recovery was long overdue but it was delayed as speculative forces spread disturbing rumours including tax on broker commission incomes in quick successions never allowing investors to have a second thought on the market statistical position and “whether or not to go for fresh buying”.
The market could shed an extra weight on Friday being a weekend session, which generally attract profit-selling from the weakholders but the next week could see a number of pleasant surprises both in terms of individual turnover and gains, brokers said.
The KSE 100-share index recovered 170.71 points at 7,784.34 points as the strength of leading base shares, notably OGDC, PTCL, Pakistan Oilfields, and PPL spilled over to other counters. All have about 50 per cent weightage in the index and could play a vital role in forestalling further declines. Market capital also recovered Rs43bn at Rs2,146.215bn.
“It was literally the OGDC day”, an analyst said “by virtue of its 22 per cent weightage in the index it could take it where it likes it.”
During the last about three weeks, the OGDC, an oil giant, had received massive battering owing to delivery problems in the matured March settlement and in the process it suffered a loss of Rs60 and 30 per cent in the index.
All the negative news by now have been virtually discounted and the market has the reasons to respond its technical demands, brokers said adding “attractively lower levels, notably on the blue chips and energy counters could put the market back on sound footing if the bulls try to fight back”.
But some others said how the market behaves during the next week is expected to set its future direction but indications are that it has already shed its extra weight and now is the turn of a smart recovery.
Heavy short-covering in the oil shares and smart rallies reflect that a solid base for the future recovery has been laid and there is no reason to believe that the follow-up support could turn shy.
“The weekend session could attract profit-selling from the weakholders but it is expected to be absorbed as banks and leading brokerage houses are in the market in a big way to cover their short positions at the lower levels”, brokers said.
Prominent gainers were led by Pakistan Oilfields, Attock Refinery, Attock Petroleum, PSO, National Refinery and Arif Habib Securities, up by Rs8 to Rs15 followed by Javed Omer, New Jubilee Insurance, United Sugar, Shell Pakistan, Pak-Suzuki Motors, EFU Life Insurance, and PPL, which recovered Rs5 to Rs6.50.
Losers were led by Noon Pakistan, Wyeth Pakistan, Gatron Industries, and Bhanero Textiles, off Rs9.25 to Rs14. Indus Dyeing, Sunrays Textiles, Artistic Denim, Blessed Textiles, and Island Textiles, followed them off Rs3 to Rs4.90.
Trading volume showed a modest rise at 232m shares from the previous 199m shares as a section of investors held on to their positions anticipating fresh rise in share values.
Advancing shares forced a comfortable lead over the losing ones at 117 to 136, with 50 shares holding on to the last levels.
OGDC topped the list of most actives, up by Rs4.90 at Rs110.70 on 45m shares followed by PTCL, higher by Rs1.45 at Rs29m shares, D.G.Khan Cement, up by Rs4.70 at Rs67.45 on 21m shares, Pakistan Oilfields, higher by Rs8 at Rs276 on 16m shares and Pakistan Petroleum, up by Rs6.20 at Rs213.75 on 14m shares.
Other actives were led by Pak PTA, steady by five paisa on 13m shares, PSO, higher by Rs10.80 on 12m shares, National Bank, firm by 60 paisa on 10m shares, Fauji Cement, up by 90 paisa also on 10m shares and Lucky Cement, higher by Rs2.35 on 9m shares.
FORWARD COUNTER: PPL led the recovery on this counter on active support and rose by Rs4.60 at Rs218.50 on 12m shares, followed by PTCL, up by Rs1.30 at Rs68.50 on 8m shares, OGDC, higher by Rs5.40 at Rs111.90 on 6m shares and Pakistan Oilfields, up Rs7 at Rs280 on 5m shares.
PSO was also actively traded, higher by Rs12.50 at Rs432.50 on 4m shares, while all others also recovered from the previous lows amid light trading.
DEFAULTING COS: Crescent-Standard Bank came in for stray support and rose by 40 paisa at Rs16.70 on 0.1m shares, while all others showed fractional either-way changes amid slow trading.
BOARD MEETINGS: American Life Insurance, on April 11, Javed Omer, on 12, Pakistan Premier Fund, Pakistan Stock Market Fund, Pakistan Capital Market Fund, Pakistan Income Fund, Natover Leasing, on 13, Union Bank, Pakistan Papersack, Kot Addu Power, on 14, and Shell Pakistan on 18.
