|
|
|
| May 23, 2005 | Monday | Rabi-us-Sani 14, 1426 |
Stock market remains erratic throughout the week
THE KSE 100-share index last week moved within a range of 100 points, both in sympathy to the rise and the fall in leading base shares. As buying support remained speculative the price pattern was elusive. Throughout the week, realisation of quick gains and cashing in on the available profit margins were the hallmarks of trading as everyone was interested in jobbing than having long positions on any counter.
It was another highly erratic performance during the week as investors played on both sides of the fence, buying at the dips and selling at the rise. The 100-share index finished with a fall of 111.24 points and ended at the week’s lowest level of 7,300.09 - at one stage hitting the highest at 7,438 points. This reflected the rise and fall in base shares, notably in the energy sector.
The market capital also fell by Rs37 billion at Rs2036 billion from the previous Rs2,073 billion as heavily-capitalized shares, notably the OGDC, the Pakistan Petroleum, the PSO and the PTCL remained under pressure and fell. Intra-day trade was the chief characteristic of the trading as an attractive bait of sell-off of some mega state-owned units including the United Bank and the PTCL on June 2 and 10, respectively failed in providing the needed stability to the market.
The bulk of either-way trading remained confined to five favourites, the PTCL, the PPL, the OGDC, the PSO, and the Pakistan Oilfields. The entire market swung and sank with them - both in terms of index level and the market capital.
It was a bad omen for a stable market some analysts said adding that until the support was broad-based and covered the entire list was always in a danger of snap reversal. Analysts said the current sluggishness was not compatible with the fiscal leaks of the forthcoming Budget on June 6, and there were no signs of speculative buying. The low volume indicated that the investors were still in two minds.
Click to view the larger image
It could be the beginning of a sustained upward run as along with oil giants, the PTCL was expected to inspire fresh covering purchases at current levels. An idea of massive covering purchases in it may be had from the fact that it accounted for 236 million shares which was more than the half of the total volume, and at a peak level. This indicated that the price flare-up may continue in subsequent sessions, as well.
The rumours on Monday were coined by those who wished to pull down its price and cover positions at the dips. They managed to get away with the booty but the late recovery pushed it substantially high. Leading oil shares which suffered heavy pruning earlier joined the race under the lead of the PSO, the OGDC, and the Pakistan Petroleum thus pushing the market back into plus column.
Floor brokers said the prevailing scramble of the PTCL’s floating stock reflected that all moneyed wanted to grab it irrespective of the cost involved. Early this year, it had risen to Rs90 plus after the news of disinvestment before June 30 came in the market. The later crash dragged it below Rs60 along with other important in energy sector.
I think the PTCL was capable of keeping the market in good shape in the weeks after its bidding, said a leading analyst. It was a good deal below Rs90 based on the rumoured reference price.
The forthcoming Budget billed as incentive-laden coincided with the bidding date. It was hoped that there would be a reasonable gap between the two, he said. The official sources had said that the prospective bidders were already short-listed along with the allied procedures and what now mattered was the bid price.
News from the political front was encouraging as President had pledged to continue with the present political set-up continue till the next general elections in 2007. Plus signs trailed far behind the minus, although leading shares such as the Abbott Lab, the Atlas Honda, the Javed Omer, the United Sugar, the Mari Gas, the PSO, the Nestle MilkPak, the Rafhan Maize, the Noon Pakistan, the Arif Habib Securities and the Clover Pakistan managed to finish with good gains on active buying.
Losers were led by the Wyeth Pakistan off Rs44.90 followed by the National Refinery, the Pakistan Refinery, the Unilever Pakistan, the Artistic Denim, the Gatron, the AKD Securities and many others.
FORWARD COUNTRER: Speculative issues on the cleared list turned mixed but ended well below the week’s highs. While the PTCL, the OGDC, and the Fauji Fertiliser Bin Qasim and some others managed to finish modestly higher, the PSO, the National Bank, the MCB fell. Major decline was in the Pakistan Petroleum and the Attock Petroleum.—Muhammad Aslam
|
|
|
|
