Stocks register fractional gain as investors play safe
By Our Staff Reporter
KARACHI, Sept 12: Trading on the stock market on Monday resumed on a steady note but investors played on both sides of the fence amid alternate bouts of buying and selling ahead of board meetings of some of leading companies including Pakistan Oilfields and Attock Petroleum.
As a result, investors kept rolling positions from the high-profile counters to those where the potential of quick gains was more sure after or prior to the announcements of dividend.
The reports that the Pakistan Oilfields has announced a higher cash dividend but skipped the widely rumoured bonus shares did affect briefly the broader market as was reflected by a modest decline in its share value on post-dividend selling.
A final cash dividend of 50 per cent by Attock Petroleum seems to be below the market expectations as its share value suffered sharp decline of Rs6.65 on late hasty selling. It has already paid interim bonus shares at the rate of 33.33 per cent.
After moving within the range of 40 points, the KSE 100-share finally managed to reverse the trend and finished with a fractional gain of 3.37 points at 7,892.62. It again briefly touched the day’s peak level of 7,925.31 and the lowest at 7,885.19 points.
The market appears to be in a consolidation phase, although some analysts claim “it is still in an overbought position.”
Some of the best dividend news, notably from Pakistan Petroleum, and OGDC are yet to be announced possibly during the current week and as the market talk goes their payouts could well be beyond the market expectations.
But some others said the heating up of the political scenario after the opposition’s general strike last Friday and a loud whispering about the possible changes in the ruling elite, denied by some top leaders, could take its toll in the form of pruning.
“The next few weeks may not be crucial for the future market direction but certainly warn of some negative fallout of the current manoeuvring,” analysts said adding “dividend-linked rally may not last long in the developing scenario”.
Cement scrips, notably low-priced among them came in for active support partly on reports of higher exports and partly to expectations of enhanced dividend for the year ended June 30, 2005. DG Khan Cement, Fauji Cement and some others were leading among them.
The current favourites in the banking sector, on the other hand, turned in a mixed performance as some of them attracted profit-selling at the higher levels under the lead of National Bank but Bank of Punjab and MCB finished with an extended gain on renewed short-covering.
Plus signs again dominated the list under the lead of Shell Pakistan and Unilever Pakistan, up by Rs19.05 and 30, followed by Adamjee Insurance, Artistic Denim, Lakson Tobacco, Millat Tractors, Aventis, Dawood Hercules, Shezan International and Pakistan Refinery, up by Rs5 to Rs12.90.
Prominent losers were led by Treet Corporation and Wyeth Pakistan, off Rs10.90 and Rs35 respectively. Others, which fell sharply included PSO, National Refinery, Pakistan Cables, National Foods, and Attock Petroleum, shedding Rs4.10 to Rs6.65.
Trading volume further shrank to 275m shares from the previous 298m shares but gainers maintained a fair lead over the losers at 165 to 122, with 28 shares holding on to the last levels.
DG Khan Cement topped the list of most actives on dividend-related buying, up Rs2.30 at Rs68.70 on 65m shares followed by PTCL, firm by 20 paisa at Rs65.60 on 24m shares, Fauji Cement, up 45 paisa at Rs15.05 on 20m shares, National Bank, off Rs1.45 at Rs124.75 on 18m shares, Nishat Mills, firm by Rs1.25 at Rs90.50 on 16m shares, MCB, steady by 45 paisa at Rs117.20 on 15m shares and OGDC, easy 60 paisa at Rs110.15 on 10m shares.
Other actives were led by Sui Northern Gas Company, higher by Rs1.60 on 14m shares, Bank of Punjab, up 55 paisa also on 14m shares, and Pakistan PTA, unchanged on 6m shares.
FORWARD COUNTER: DG Khan Cement was also actively traded on this counter, higher by Rs2.70 at Rs69.45 on 10m shares followed by PTCL, firm by five paisa at Rs66.05 on 9m shares, and Fauji Fertilizer Bin Qasim, easy 20 paisa at Rs34.95 on 7m shares.
Other actives were led by Nishat Mills, up Rs1.15 at Rs91.45 on 6m shares and OGDC, lower 50 paisa at Rs111.10 also on 6m shares. Other current actives were traded modestly higher.
DEFAULTER COS: Trading on this counter was relatively slow in the absence of strong support from any quarter. Price changes were fractional amid slow ready offtake. Hamid Textiles, which fell by 90 paisa at Rs0.60 were leading among the losers.
DIVIDEND: Attock Petroleum, cash final 50 per cent, bonus shares at the rate of 33.33 per cent already paid, Attock Cement, cash 12.5 per cent, Ahmed Hassan Textiles, cash 12.5 per cent, Jahangir Siddiqui Capital Market Fund, bonus shares 15 per cent, Providence Modaraba, cash 11.5 per cent, Dadabhoy Sack 7.5 per cent and Central Forest Division, nil.
BOARD MEETINGS: Karam Ceramics, Indus Motors, Artistic Denim, Union Leasing, and Zahijee Textiles, on Sept 16, Jahangir Siddiqui & Co and Jahangir Siddiqui Investment Bank, on 17 and Javedan Cement, on Sept 22.
KARACHI, Sept 12: Trading on the stock market on Monday resumed on a steady note but investors played on both sides of the fence amid alternate bouts of buying and selling ahead of board meetings of some of leading companies including Pakistan Oilfields and Attock Petroleum.
Cement scrips, notably low-priced among them came in for active support partly on reports of higher exports and partly to expectations of enhanced dividend for the year ended June 30, 2005. DG Khan Cement, Fauji Cement and some others were leading among them.
