KARACHI, May 19: Stocks on Thursday turned mixed as investors played on both sides of the fence without taking long positions on any of the counters amid light trading. Selective support, however, figured on a number of counters including the energy sector, which enabled the index to recover in part the previous losses. The KSE 100-share index, therefore, recovered 66 points on active short-covering in the leading base shares but the broader market remained under pressure despite positive reports from the privatization front and announcing of national budget on June 6.
It finally ended around 7,413.70 after hitting the day’s lowest and the highest at 7,322.51 and 7,433.09, respectively, as compared to 7,340.08 a day earlier, up by 65.64 points.
PTCL, OGDC, PSO and Pakistan Petroleum leading index shares together holding weightage of 50 per cent in it were in the forefront where bulk of the short-covering operations remained centred followed by some second-liners. On the forward counter, PTCL was quoted around Rs74.45 after hitting the day’s best bid at Rs74.90 on 8m shares and its relative strength was well-reflected in its ready rate.
The oil sector received a major boost from reports that 14 companies have submitted Expressions of Interest (EoIs) for controlling shares of Pakistan Petroleum. The list of companies, which have shown interest in Pakistan Petroleum, is impressive as it includes, among others, British Gas, British Petroleum, MOL, OMV, China National Oils, and Orient Petroleum.
Analysts said falling volumes reflected that leading investors had still some reservations about the future direction of the market and generally play safe, without holding long positions even on the blue chip counters.
“Market leaders, notably PTCL, OGDC, PSO, and PPL show smart rallies but only for a session as the very next day bargain-hunters again push them down after taking profits at the inflated levels”, they said.
Inconsistency in financial support seems to be the chief destabilizing factor as in the absence of institutional support the general investors think twice to enter the market. Barring the energy sector where the leading shares recovered sharply, price changes on the other counters were fractional and reflected lack of support rather than large selling from any quarter.
Minus signs again held a modest edge over the plus ones, notable losers being Arif Habib Securities, Gatron Industries, Attock Refinery, Pakistan Refinery, Gadoon Textiles, Faisal Spinning and Mari Gas, off Rs3.50 to Rs6.10.
Major fall of Rs14, Rs16.10 and Rs19.40 was noted in AKD Securities, Atlas Honda and National Refinery respectively on renewed selling. Leading gainers included EFU General Insurance, PPL, Nestle MilkPak, Murree Brewery, Shell Pakistan and PSO, which rose by Rs2.50 to Rs8.75. Others showed fractional gains.
Trading volume fell to 232m shares from the previous 342m shares as gainers trailed far behind the losers at 120 to 170, with 42 shares holding on to the last levels. The most active list was again topped by PTCL, up by Re1 at Rs74.30 on 82m shares followed by OGDC, higher by Rs1.95 at Rs103.50 on 61m shares, PSO, sharply higher by Rs8.75 at Rs387 on 21m shares, Pakistan Petroleum, higher by Rs3.50 at Rs182.50 on 10m shares, National Bank, steady 45 paisa at Rs97.05 on 7m shares and MCB, firm by 20 paisa at Rs75.30 on 6m shares.
PICIC Growth Fund was marked down by 20 paisa at Rs53.85 on 4m shares, Sui Northern Gas, higher by Rs1.80 on 6m shares, Kot Addu Power, up by Rs1.25 on 4m shares and Fauji Fertilizer Bin Qasim, firm by 35 paisa on 3m shares.
FORWARD COUNTER: Strong buying was witnessed in oil shares under the lead of PSO, which recovered Rs7.80 at Rs387.60 on 5m shares followed by PPL, higher by Rs2.15 at Rs183 also on 5m shares and OGDC, firm by Rs1.75 at Rs103.60 on 5m shares.
But PTCL was again the top scorer, up by 60 paisa at Rs74.45 on 8m shares. Others were modestly traded mostly on the higher side.
DEFAULTER COS: Unlike the previous sessions, Asset Bank came in for modest support and rose by 30 paisa at Rs3.35 on 0.126m shares, but on the other hand Trust Brokerage fell by 45 paisa at Rs9.50 on 0.11m shares. Others showed mixed trend amid stray deals.
