KARACHI, June 13: Stocks on Monday reacted positively to new sell-off date of PTCL but analysts fear timing may not be that ideal owing to rigid position taken by the workers union despite a massive financial package of Rs5 billion and other benefits. The deadline of June 18, leading to PTCL sell-off could be very crucial as it could have both positive and negative impact on the government’s future privatization programme including mega issues such as PSO.
Those who speculate that the sale operation may be pretty smooth indulged in strong speculative trading but those who could peep through the post-sell-off scenario mostly played safe awaiting further developments on the PTCL workers’ strike front as was reflected by a steep fall in the volume.
The KSE 100-share index breached through the barrier of 7,400 and was last quoted at 7,441.77 as compared to the previous 7,345.29, up by 96.48 points or 1.31 per cent on the strength of PTCL, which though finished well below the day’s peak of Rs72.40 to Rs71 on late-selling.
But there was a general optimism among the brokers and investors that the government is inclined to go with its privatization policy irrespective of workers’ resistance. There could be two opinions about the sale proceeds in the prevailing scenario as bidders will think twice before bidding.
However, the government seems to be in no mood to be outwitted by the strike and intends to go through the deal within the given date as short-listed six prospective bidders are still in the lines.
The government came out with a fresh selling date after the employees union reportedly rejected the financial package of Rs5 billion with other facilities including security of service.
But the question being debated among the analysts is that whether or not the PTCL sale could get a fair price in the prevailing commotion and rigid positions taken by the contenders, says a leading broker.
As far as investors are concerned they are not inclined to take negative view of the other side as was reflected by a fresh sharp rise in its share value as it was quoted around Rs72, although the situation is still fraught with high financial risks, he said.
“There still may be many a slips between the cup and the lip if situation further aggravates,” analysts fear “The sell-off under the prevailing conditions may affect the selling price”.
Apart from the PTCL, the market advance was led by the leading oil shares under the lead of Pakistan Petroleum, PSO and some others amid light trading.
Plus signs held a fair lead over the minus ones under the lead of United Sugar, Lakson Tobacco, Pakistan Petroleum, and Grays of Cambridge, up by Rs7.85 to Rs12.75. Other good gainers were led by Al-Ghazi Tractors, PSO, Dawood Hercules, Berger Paints, Sitara Chemicals, Arif Habib Securities and EFU General Insurance, which posted gains ranging from Rs4 to Rs5.75.
Losers included N.P. Spinning, Javed Omer, Crescent Steel and Artistic Denim, off Rs2.75 to Rs9 but the largest decline of Rs26 was recorded in Valika Fabrics.
Trading volume fell to 193m shares from the previous 267m shares but gainers maintained a fair lead over the losers at 148 to 118, with 37 shares holding on to the last levels.
PTCL was actively traded and was marked up by Rs1.35 at Rs71 on 79m shares followed by National Bank, steady by 50 paisa at Rs101.50 on 29m shares, PSO, higher by Rs5.75 at Rs377.45 on 13m shares, Pakistan Petroleum, up by Rs9.65 at Rs202.75 also on 13m shares, D.G.Khan Cement, lower 20 paisa at Rs56.65 on 6m shares, Pakistan Oilfields, up by Rs2.30 at Rs267.30 on 5m shares and OGDC, higher by Rs1.50 at Rs105.25 also on 5m shares.
Other actives included Fauji Fertilizer Bin Qasim, lower 15 paisa on 5m shares, MCB, up by Rs1.15 on 4m shares and Sui Northern Gas, unchanged on 3m shares.
FORWARD COUNTER: OGDC led the list of actives on this counter, higher by Rs2.25 at Rs104.50 on 20m shares followed by PTCL, up by Rs1.80 at Rs71.85 on 15m shares and Pakistan Petroleum, higher by Rs9.75 at Rs204.75 on 14m shares.
Other actives were led by PSO, sharply higher by Rs5.90 at Rs379.85 on 7m shares, United Bank, higher by Rs3.05 at Rs65 on 4m shares. Others also rose amid slow trading.
DEFAULTER COS: Activity on this counter remained dull in the absence of strong demand as leading investors remained busy in the ready section. Price changes were fractional on all the counters.
