KARACHI, Sept 6: Stocks on Tuesday failed to maintain their upward drive as a section of investors took profits at the higher levels but there were buyers at the dips aided by higher dividend announcements and an attractive bait of capital gains.
Floor brokers said the current wave of recovery was not overdone. The market could resume its upward drive after meeting its technical demand being in an overbought position.
The KSE 100-share index early rose to session’s high of 7,878 on strong spill-over demand in most of the pivotals but later selling pushed it down to finish off 42.02 points at 7,807.04 as compared to 7,876.01 a day earlier.
Pakistan Telecommunications (PTCL) gave another outstanding performance as the days of takeover of its management by the Etisalat are closing possibly by the end of the current month. Etisalat has purchased its controlling shares last month in an open bid at $1.17 per share, while the ruling prices at that time was around Rs65 per share of Rs10 excluding the premium.
“What seems to have encouraged investors to have it at the rising price was the market talk of its dual listing in the UAE,” analysts said adding “reports that it may also purchase PTCL A class shares to increase in its shareholding also added to its current strength.”
After having risen sharply higher during the last couple of sessions, the market needs a correction and that came in the form of profit-selling at the higher levels on some of the blue chips counters.
Analysts said it may not be now that easy for the bears to prevail as most of the basic fundamentals have altogether changed after the replacement of badla financing by Continuous Funding System (CFS) which ensures an adequate money supply for the daily trading.
The important thing is that brokerage houses are abiding the rule under the CFS and are trying to operate within the capped amount of Rs25 billion, which in turn has restored needed stability to stock trading.
But bank shares, notably National Bank and the MCB and the Bank of Punjab were not in line with the losing shares as they maintained their upward drive on the strength of higher corporate earnings and expectations of handsome interims.
Dividend news pouring in daily are mostly on the higher side of the analysts predictions and are playing their stabilising role on those counters from where they originate.
Among the major losers National Refinery whose directors came out with a cash dividend of 75 per cent was off Rs17.15, followed by AKD Securities, followed by Atlas Honda, Sitara Chemical, Gadoon Textiles, Indus Dyeing, OGDC, EFU Life, and Attock Petroleum, which suffered fall ranging from Rs3 to Rs9.20.
Gainers were led by Shell Gas and Wyeth Pakistan, up Rs16.25 and Rs30.50 respectively. Other notable gainers included Nishat Chunian, EFU General, Adamjee Insurance, Pakistan Refinery, Haroon Oils, Indus Motors, Millat Tractors, Pakistan Hotels after 35 per cent cash dividend, Arif Habib Securities and Abbott Lab, which rose by Rs3 to Rs6.70. Trading volume rose to 356m shares from the previous 276m shares owing to alternate bouts of buying and selling in PTCL and OGDC. Losers held a strong lead over the gainers at 177 to 117, with 57 shares holding on to the last levels.
The most active list was topped by PTCL, up one rupee at Rs66.30 on 83m shares followed by OGDC, off Rs3.85 at Rs112,05 on 61m shares, National Bank, up Rs2.95 at Rs123.35 on 48m shares, Bank of Punjab, higher by Rs1.65 at Rs100.40 on 34m shares, MCB, up Rs2.05 at Rs111.15 on 19m shares, Pakistan Petroleum, off one rupee at Rs182.50 on 8m shares.
Other actives were led by DG Khan Cement, up 80 paisa on 20m shares, Pakistan Oilfields, lower 65 paisa on 14m shares, Nishat Mills, up Rs2.40 on 13m shares, and Dewan Salman, lower 20 paisa on 10m shares.
FORWARD COUNTER: OGDC came in for active selling at the higher levels and fell by Rs3.30 at Rs113.30 on 27m shares followed by PTCL, up 90 paisa at Rs66.50 on 16m shares, and National Bank, up Rs2.25 at Rs123.20 on 11m shares.
Pakistan Petroleum on the other hand came in for stray selling ahead of its board meeting on Sept 11, and fell by 65 paisa at Rs184 on 8m shares, Pakistan Oilfields, steady by 15 paisa at Rs362.95 on 7m shares but all others generally showed fractional price changes barring Bank of Punjab Nishat Mills, National Bank and MCB, which rose by Rs1.75 to Rs2.30. PSO, which fell by Rs1.95 at Rs380.55 was leading among the losers.
DEFAULTER COS: Trading activity on this counter was slow in the absence of aggressive demand and as a result price changes were fractional. While Crescent Board and Al-Asif Sugar rose by 65 to 75 paisa at Rs16.75 and Rs5.50, Medi Glass, Suzuki Motorcycles, and Trust Brokerage fell by 65 paisa to one rupee at Rs1.35, 12.70 and 7 respectively.
DIVIDEND: National Refinery, cash 75 per cent, Pakistan Hotels, cash 35 per cent, Gadoom Textiles, 25 per cent, Habib Bank Modaraba, 13 per cent, Shifa International 10 per cent, Standard Chartered Bank, cash 20 per cent, bonus shares five per cent, Pakistan International Containers, Safa Textiles, and Johnson & Philips Pakistan, nil for the year ended June 30, 2005.
BOARD MEETINGS: Ahmad Hassan Textiles, on Sept 9, Ghandhara Nissan, Pakistan Papersack, Zulfeqar Industries,
Thal, and Al-Noor Modaraba, on Sept 12, Shabbir Tiles, on 13, Towellers, on 22 and Polyron, on Sept 28.
KARACHI, Sept 6: Stocks on Tuesday failed to maintain their upward drive as a section of investors took profits at the higher levels but there were buyers at the dips aided by higher dividend announcements and an attractive bait of capital gains.
The important thing is that brokerage houses are abiding the rule under the CFS and are trying to operate within the capped amount of Rs25 billion, which in turn has restored needed stability to stock trading.
