KARACHI, April 29: Stocks finished the weekend session on an easy note as leading investors played on both sides of the market indulging in alternate bouts of buying and selling in light trading. Leading investors and brokerage houses adhered to the sidelines most of the time awaiting the outcome of talks between the KSE high-ups and the SECP on the new rules for futures trading. The current uncertainty had in part caused by the changing forward rules, some analysts said.
After turning in highly erratic price movements, the index finished with an extended loss as investors were not inclined to make fresh commitments even in a falling market.
The KSE 100-share index after rising at one stage by 80 points finished the weekend session with the loss of 39.83 points at 7,104.65 as compared to 7,144.48 a day earlier.
The perception that higher dividend and bonus shares and corporate earnings by most of the leading companies may boost stock trading after restoring investors in long-term investment but despite snap post-dividend positive flutters there were no signs of a sustained recovery.
An interim dividend of Rs5 or 50 per cent for the third quarter (Rs11 or 110 per cent first interim already paid), by the oil giant Pakistan State Oil Company (PSO), for instance, did evoke a good bit of buying in it and some other low-priced shares but the rally proved short-lived in the absence of follow-up support.
“Both brokerage houses and financial institutions are still caught in the changing rules in regard to future contracts and until things settles down on the procedure counters, the market may not respond to its oversold position,” says a leading analyst.
Investor interest in the share business is fading by each session as was reflected by the falling daily volumes, as everyone is awaiting how the things settles down at the SECP level.
The KSE managing director is already holding talks with the SECP in Islamabad on the changes in the forward trading and the possible investor reaction to them.
“One thing is clear that everyone is out to put the market back on the rails sans the big ones who generally set its future direction after injecting fresh funds or withdrawing them as suit them”, brokers said.
Some of the leading shares in oil sector, notably Pakistan Petroleum, Pakistan Oilfields, Sui Northern Gas ahead of its board meeting, cement and bank shares, notably MCB earlier in the morning session came in for active short-covering and boosted the KSE index but later selling in them again pushed it down.
Minus signs again dominated the list under the lead of BOC Pakistan, AKD Securities, Shell Pakistan, United Sugar, Ferozsons Lab, and Millat Tractors, off Rs4 to Rs10.90 followed by Javed Omer, Artistic Denim, Engro Chemical, Bata Pakistan and Attock Petroleum, which suffered fall ranging from Rs3 to Rs4.15.
Mehmood Textiles, Mari Gas, PNSC, Jahangir Siddiqui Co, andUnilever Pakistan were leading among the gainers, up Rs4 to Rs26.25 followed by Gadoon Textiles, Nishat Mills, Dawood Lawrence, National Refinery and ICI Pakistan, up Rs2.50 to Rs3.90.
Valika Art Fabrics spurted by Rs275.10 on an apparent management bid to mop up floating stock from the stakeholders but only 500 shares were traded.
Trading volume fell further to 160m shares from the previous 224m shares a day earlier as losers held a strong lead over the gainers at 165 to 85, with 28 shares remaining pegged at the last close.
PTCL led the list of actives, easy five paisa at Rs61.85 on 37m shares, OGDC off Rs1.15 at Rs95.60 on 18m shares, MCB, easy 65 paisa at Rs75.65 on 12m shares, PSO, up Rs1.50 at Rs368.00 also on 12m shares, and National Bank, lower Rs1.05 at Rs96.70 on 10m shares.
Other actives included DG Khan Cement, up 55 paisa on 10m shares, Pak PTA, lower 40 paisa on 9m shares, Sui Northern Gas, off Rs1.50 7m shares, Pakistan Petroleum, lower 3.75 on 5m shares and Fauji Fertilizer Bin Qasim, easy 20 paisa on 5m shares.
FORWARD COUNTER: PTCL also led the list of actives on this counter, lower 20 paisa at Rs61.80 on 3m shares, PPL, off 4.40 at Rs159.60 on 3m shares, MCB, lower 90 paisa at Rs76.10 on 2m shares, OGDC, off Rs1.52 at Rs96.99 on 2m shares.
DEFAULTER COS: Cheerless trading conditions were again witnessed on this counter where fractional either-way price changes were witnessed amid modest deals.
