KARACHI, May 6: Stocks on Friday ended with clipped gains but the underlying sentiment remained uppishly inclined aided by revival of institutional support at the lower levels under the lead of energy shares. The KSE 100-share index ended with an extended gain of 85.03 points. The energy sector again led the market advance as it has assumed the role of a trend-setter during the market’s post-plunge recovery and for good reasons too. The general perception is that the worst may now be over as the technically-oversold market could attract any amount of covering purchases.
Market talk of acceptance of fresh changes proposed by the KSE in the rules of forward trading by the SECP is said to be the chief aiding factor behind the current rally and that could be sustained in the presence of share hedging facility. Prominent stocks, on short-term basis, could recoup in part the massive losses they suffered during the recent market plunge but to think of overnight windfall at this stage may be elusive perception, analysts said.
The KSE 100-share index was earlier up by 98 points on fresh heavy buying in the selected shares but late selling in some of the leading base shares pushed it down to close below the day’s peak level. It closed the weekend session with a modest fresh rise of 8.03 points at 7,183.25 as compared to 7,098.22 a day earlier as leading base shares, notably PTCL, OGDC, Pakistan Petroleum and PSO finished with an extended gain.
The day’s highest and the lowest was touched at 7,221.35 and 7,098.22 respectively. The market capital also rose by Rs18.221bn at Rs2,020.919bn. Brokers said although all indicators point to the extension of the bull-run in the coming sessions, financial investors are still in two minds and are not lending needed support to a market ripe for a rebound.
Their presence, they said, could give the needed credence to the small investors who are still thinking whether or not to go for the share business in the wake of last month’s market collapse.
Some others said the market is well on the road to recovery under the lead of energy and bank shares and it would be a bit foolish to think of its meteoric rise to the early February and March level. The official sell-off of some state-owned units including PSO and PTCL during the next couple of months as the process is claimed to be well in advance stage could give the needed depth and strength to the market in post-budget weeks.
The national budget next month amid market talk of a number of fiscal incentives and cut in corporate taxes could boost stock trading in the coming weeks.
Leading gainers were led by PPL, Shell Pakistan, Pakistan Refinery and Bhanero Textiles, up by Rs8.30 to Rs12.75. They were followed by Pakistan Oilfields, Clover Pakistan, Mari Gas, Attock Refinery, Atlas Honda, and Attock Petroleum, posted fresh gains ranging from Rs4.20 to Rs6.20.
National Refinery, Century Papers, Suzuki Motors, Honda Atlas Car, on post-dividend selling, ICI Pakistan, Indus Dyeing, Artistic Denim and Unilever Pakistan were among the prominent losers, off Rs3.10 to Rs15.20.
Trading volume further rose to 318m shares from the overnight’s 242m shares as gainers have a modest edge over the losers at 130 to 123, with 45 shares holding on to the last levels.
PTCL was again actively traded, higher by Rs1.15 at Rs64.20 on 131m shares, followed by OGDC, up by Rs1.70 at Rs97.60 on 75m shares, PSO, off Rs2 at Rs366 on 14m shares, National Bank, lower 50 paisa at Rs95.40 on 13m shares and Pakistan Petroleum, higher by Rs8.30 at Rs174.30 on 11m shares.
Other actives were led by Sui Northern Gas, up by Rs1.30 on 11m shares, D.G.Khan Cement, off 45 paisa on 10m shares, Pakistan Oilfields, up by Rs4.20 also on 10m shares, Fauji Fertilizer Bin Qasim, off 55 paisa on 8m shares and MCB, lower by Rs1.95 on 6m shares.
FORWARD COUNTER: PTCL also proved to be one of the most active shares on the cleared list on active buying aided by positive reports on its privatization front. It rose by Rs1.10 at Rs64.65 on 11m shares followed by PPL, sharply higher by Rs8.35 at Rs175.35 on 8m shares and OGDC, up by Rs2.50 at Rs98.30 on 6m shares.
PSO on the other hand came in for weekend selling and was marked down by Rs1.35 at Rs368.90 on 4m shares followed by Sui Northern Gas, higher by Rs1.75 at Rs56.20 also on 3m shares. Others also rose amid slow off-take.
DEFAULTER COS: Fractional price changes were witnessed on this counter in the absence of strong demand. Turnover was light but there was no big deal.
