KARACHI, May 3: The KSE 100-share index on Tuesday recovered modestly aided by active short-covering in PTCL and some other leading base shares, but the rally appears to be too feeble to be extended. The KSE index rose by 55.19 points at 6,832.74. Essentially, it was a technical rally and was confined to some leading index shares in an apparent effort to realize quick gains if it was sustained on Wednesday. The consolidation forces are still in two minds about apparently having an overview of the entire situation.
After having fallen sharply lower, the KSE 100-share index finally managed to finish partially recovered on active short-covering in leading base shares under the lead of PTCL. It finally finished with a robust rally of 55.50 points after at one stage shedding another 125 points on spillover selling from the overnight at 6,865.70 as compared to 6,832.74 a day earlier.
“The recovery was initiated by the PTCL followed by PSO and OGDC and some other leading index shares, but I doubt it could be sustained as buying support from financial institutions are not coming even at the attractively lower levels,” says a leading stock broker. The next couple of sessions could be very crucial for the direction of the market as the dividend-driven rally is fading by each session as leading companies have already announced the interim working results.
But analysts said the breach of the barrier of 7,000 was very significant as it points to further price erosions and snap flutters here and there on selected counter notwithstanding. However, some others predict it is heading towards its real value around 6,000-point index level and may hover between 6,000 and 7,000 until the budget next month. Its future direction would be guided by the fiscal measures and political events.
Although some leading shares in the energy sector managed to finish sharply higher, the broader market was easy in the absence of strong financial support. PSO and National Refinery recovered Rs13.60 and Rs18.90 followed by Javed Omer, Shezan International, Packages, up Rs5 to Rs6.50.
Losers were led by Nestle MilkPak and Wyeth Pakistan, off Rs27.20 and Rs54, while Indus Dyeing, Central Insurance, Gatron Industries, Millat Tractors, Artistic Denim, Colgate Pakistan, and Valika Art Fabrics, suffered fall ranging from Rs5 to Rs19.90.
Trading volume showed a modest rise at 169m shares from 119m shares a day earlier but losers maintained a fair lead over gainers at 110 to 171, with 37 shares holding on to the last levels.
PTCL led the list of actives, up Rs1.20 at Rs60.60 on 52m shares followed by OGDC, firm by 25 paisa at Rs91.10 on 26m shares, PSO, higher by Rs13.60 on 17m shares, National Bank, up Rs1.85 at Rs93.75 on 13m shares and Pakistan Oilfields, higher by Rs1.55 at Rs258.05 on 8m shares.
Other actives were led by DG Khan Cement, up Rs1.65 on 7m shares, Pakistan Petroleum, higher by 55 paisa on 5m shares, Fauji Fertilizer Bin Qasim, firm by 55 paisa on 5m shares, Pak PTA, steady by five paisa also on 5m shares and MCB, higher by Rs1.40 on 4m shares.
FORWARD COUNTER: PTCL was also traded actively on this counter on active short-covering at the lower level, up Rs1.80 at Rs61.20 on 6m shares, PSO, sharply higher by 17.35 at Rs365.05 also on 6m shares, PPL, steady by 25 paisa at Rs154 on 4m shares, OGDC, lower 15 paisa at Rs92 on 3m shares and Pakistan Oilfields, up Rs2.55 at Rs261.90. Turnover was light owing to check on free float of shares.
DEFAULTER COS: After several lean sessions because of turmoil in the ready section, stray activity was witnessed on this counter under the lead of Unity Modaraba, easy five paisa at Rs0.80 on 0.119m shares. Others were modestly traded amid stray deals.
