Stocks maintain firm outlook amid good corporate news
By Our Staff Reporter
KARACHI, Sept 9: Stocks finished the weekend session on Friday on a firm note but the activity was relatively slow owing partly to strike call given by the opposition parties and partly to weekend profit-selling. Although the broader market performed well, selling in some of the pivotals including PTCL weighed heavily against the sentiment and evoked sympathetic selling on some other counters.
The KSE 100-share index early briefly breached through the psychological barrier of 7,900 at 7,934, which was incidentally the day’s highest level but failed to sustain it owing to selling in the afternoon session.
Trading was smooth despite strike call given by the opposition and shutdown of the main city business centres as investors demonstrated they mean business without taking sides with the political contenders.
The KSE 100-share index finally ended around 7,889.24 as compared to 7,884.21 a day earlier, up by 5.03 points, reflecting the strength of leading energy and bank shares barring PTCL which came in for active selling.
The index is now sure to cross its next barrier of 8,000 points by the next week as some of the higher corporate announcements still to come, notable among them being of Pakistan Petroleum and OGDC.
“What next is pretty difficult to predict at this stage”, analysts said adding “the heating up of post-strike political scenario may well be one of the chief factors behind its future outlook”.
But some other said the possibility of major shakeout appears to be a bit remote as both genuine investors and speculative traders were not inclined to move away from the relative safe havens and generally play safe.
Much of the activity, therefore, remained confined to those counters where the potential of recovery from the lows was around notably OGDC, Pakistan Petroleum, Pakistan Oilfields, National Bank, Bank of Punjab and MCB.
Some leading brokers predicted that the next week could be very crucial for the future direction of the market in the backdrop of developing political situation.
Meanwhile, it is satisfying to note that investors have tailored their operations within the capped limit of Rs25 billion under the CFS and that is why there is no cry for the revival of badla system of financing.
Bhanero Textiles and Wyeth Pakistan were leading among the gainers, up by Rs14.70 and Rs55, followed by Adamjee Insurance, Attock Petroleum, United Sugar, Central Insurance, Colgate Pakistan, Dawood Hercules, Atlas Honda after the announcement of cash dividend of 60 per cent plus bonus shares of 40 per cent in the ratio of two shares for every five held, Pakistan Cable, Millat Tractors, Pakistan Refinery and National Refinery, up by Rs4.80 to Rs13.
Losers were again led by National Food, on post-dividend selling, Nestle MilkPak, Aventis, Mari Gas and Haroon Oils, off Rs3 to Rs4.90.
Trading volume further fell to 298m shares from the previous 367m shares as losers held a modest edge over the gainers at 156 to 116 with 25 shares holding on to the last levels.
Among the actives, PTCL was leading on the downside, off 75 paisa at Rs65.40 on 38m shares followed by MCB, higher by Rs1.35 at Rs116.75 on 33m shares, National Bank, up by Rs1.15 at Rs126.20 on 31m shares, OGDC, off 75 paisa at Rs110.75 on 30m shares, D.G.Khan Cement, higher by Rs1.35 at Rs66.40 on 27m shares, Nishat Mills, lower Rs1.70 at Rs89.25 on 19m shares and PSO, higher by Rs2.80 at Rs393 on 16m shares.
Other actives were led by Pakistan Oilfields, firm 60 paisa on 16m shares, Pakistan Petroleum, lower 55 paisa on 12m shares and Bank of Punjab, easy 45 paisa on 11m shares.
FORWARD COUNTER: Fauji Fertilizers led the list of actives on this counter, up by 90 paisa at Rs35.05 on 19m shares followed by OGDC, off 70 paisa at Rs111.60 on 10m shares and MCB, up by Rs2.05 at Rs117.60 on 9m shares.
Among the other actives, Nishat Mills was leading, off Rs1.20 at Rs90.30 on 8m shares and Pakistan Oilfields, up by 85 paisa at Rs357.75 on 8m shares.
DEFAULTER COS: Active trading was witnessed on this counter as most of the deals were done on the higher side but the individual share turnover was modest. Dewan Autos and Ghandhara Industries were leading among the losers, off Re1 and Rs1.90 at Rs10.00 and Rs36.25.
DIVIDEND: Atlas Honda, cash 60 per cent plus bonus shares of 40 per cent, Dawood Investment Bank, bonus shares at the rate of 10 per cent, International Investment Bank, cash 14 per cent, Kohinoor Energy, cash 10 per cent, Al-Zamin Leasing, five per cent, Muslim Ghee and Unicap Modaraba, both nil.
BOARD MEETINGS: B.R.R. Modaraba on Sept 13, Fazal Textiles on Sept 14, Maple Leaf Cement and Data Agro on Sept 15, Dadabhoy Cement on Sept 16 and Askari Leasing on Sept 27.
KARACHI, Sept 9: Stocks finished the weekend session on Friday on a firm note but the activity was relatively slow owing partly to strike call given by the opposition parties and partly to weekend profit-selling. Although the broader market performed well, selling in some of the pivotals including PTCL weighed heavily against the sentiment and evoked sympathetic selling on some other counters.
Much of the activity, therefore, remained confined to those counters where the potential of recovery from the lows was around notably OGDC, Pakistan Petroleum, Pakistan Oilfields, National Bank, Bank of Punjab and MCB.
