KARACHI, May 24: The overnight downward drift on Tuesday was halted on the stock market as investors covered positions on selected counters at lower levels aided by perceptions of approval of the KSE proposal in regard to free float by the SECP. The KSE index recovered 52 points at 7,035.
This perception was based on hopes that Islamabad may not like the market to fall further ahead of an ambitious disinvestment programme of some mega state-owned units and to keep their prices on the higher side.
Reports that a high-powered delegation of bourses is in session in Islamabad with the SECP high-ups on the issue of increase in free float from one per cent to five per cent and some other relevant issues seem to have lured investors back on hopes that something positive would emerge from the talks.
After having earlier fallen by 150 points amid panic carried over from Monday, the KSE 100-share index later managed to finish with a modest increase of 51.54 points at 7,034.84, as compared to 6,983.30 a day earlier.
PTCL alone took lead to halt the market downturn and rose by Rs1.70 at Rs71.70 on a large turnover of 118m shares, about a half of the day’s total. It may not be the beginning of the pre-budget rally; indications are that the worst may be over and positive side of the budget could keep investors in a good mood during the pre-budget sessions.
“It is very strange that the market is in a terrible state of uncertainty unlike the previous pre-budget sessions,” analysts said. “In the pre-budget sessions investors take fresh positions followed by “some fiscal leaks”, but this time everyone is trying to sell his holding.”
The new budget may not be that bad as the central bank report points to strong macro indicators in the backdrop of growth rate of eight per cent, but bears made it look so in an apparent effort to push prices down and then buy at the lower rates, they said.
Earlier, stocks suffered fresh widespread fall on renewed selling as there is no official word about the raise or otherwise in the broker exposure limits to five per cent or free float on the forward counter.
Rumours about the increase in capital value tax (CVT) in interest rates and issue of margin financing continued to have negative impact on the stock trading, as investors were not inclined to hold fresh positions until the major irritants were removed, brokers said.
Leading oil shares, notably Attock Petroleum, National Refinery, Pakistan Refinery, PSO and Shell Pakistan led to the market advance, up Rs5.55 to Rs14, followed by BOC Pakistan, International Industries, Arif Habib Securities and Artistic Denim, up Rs4.35 to Rs7.05.
Losers were led by Grays of Cambridge, Unilever Pakistan, Island Textiles, Siemens Pakistan and Valika Art Fabrics, which suffered fall ranging from Rs8 to Rs15, largest decline of Rs24 being in Valika Art.
Adamjee Insurance, Sitara Chemicals, Exide Pakistan, PPL, Faisal Spinning and Yousuf Textiles also came in for modest selling and fell by Rs3 to Rs4.20.
Trading volume rose to 276m shares from the previous 102m shares as the advancing shares forced a comfortable lead over the losing ones at 142 to 105, with 40 shares holding on to the last levels.
Apart from PTCL, OGDC was also actively traded, off 90 paisa at Rs95.90 on 38m shares, Pakistan Stock Market Fund, steady by 10 paisa at Rs8.75 on 18m shares, PSO, sharply higher by Rs6.75 at Rs368 on 15m shares, PICIC Investment Fund, firm five paisa at Rs14.90 on 13m shares, National Bank, up Rs1.25 at Rs91.50 on 12m shares and Pakistan Oilfields, higher by Rs3.50 at Rs255.50 on 6m shares.
Other actives were led by Pakistan Petroleum, off Rs3.40 on 6m shares, DG Khan Cement, lower 95 paisa also on 6m shares, Sui Northern Gas, up Rs2.95 on 5m shares.
FORWARD COUNTER: PTCL also led the rally on this counter, higher by Rs2.53 at Rs71.60 on 10m shares followed by PSO, up Rs7.07 at Rs368.90 on 5m shares, OGDC, lower 86 paisa at Rs96 on 4m shares, PPL, off Rs4.29 on 3m shares and Sui Northern Gas, higher by Rs3 at Rs63 also on 3m shares.
Some other leading shares also rose modestly on light trading as a section of investors covered positions hoping an increase in the exposure limit to five per cent.
The notable feature was that trading also commence in the June contracts side by side the maturing May settlements, which are expected to be rung off the board on May 27, and June contracts will assume the role of actives.
DEFAULTER COS: Activity on this counter was relatively slow in the absence of leading investors who remained busy adjusting positions in the ready section. Most of the shares posted fresh rise amid light turnover.
