Stocks recover 37 points as short-covering sets in
By Our Staff Reporter
KARACHI, Sept 26: Stocks on Monday shrugged off the weekend hesitancy and finished recovered across-the-board under the lead of blue chips on active short-covering at the lower levels.
All eyes, however, remained focused on the PTCL ahead of its board meeting and expectations of higher final dividend but it failed to make a major headway on the price front as was speculated.
Price movements on the active counters were two-sided earlier in the session as a section of operators tried to push prices lower and then to buy for capital gains but the closing witnessed a modest recovery under the lead of some pivotals.
Despite their inflated levels, both cement and auto shares remained in strong demand and posted good gains amid active trading followed by short-covering.
The KSE 100-share index was quoted higher by 37.57 points at 8,217.47 as compared to previous 8,179.90 boosted apparently by heavy PTCL pre-board meeting speculative buying.
The PTCL board was scheduled to meet to announce final working results for the last year amid conflicting reports of its annual earning and the payout. Most analysts put the profit for the last six months around Rs29 billion, and EPS at Rs5.80 the total being Rs62 plus.
The current volatile performance reflected that the employees strike at the time of its sell-off to Etisalat may have wiped out substantial amounts in terms of hard cash because of disruption in services. However, final dividend may touch the high figure of Rs3.5 per share.
Its share turned in a heavy volume after touching the highest and the lowest at Rs66.70 and Rs64.50, respectively.
All the current favourites rose further higher under the lead of bank shares, notably National Bank and some cement shares under the lead of D.G.Khan Cement.
Analysts said unlike the previous sessions, oil shares could not assume the role of trend-setters along with the bank sector apparently amid reports that the prime minister has sought report on the price fixation at the consumer end by the oil giants.
However, bank shares did not look back and maintained their upward drive on fresh covering purchases triggered by reports of higher interim earnings and market talk of enhanced dividend.
AKD Securities and Wyeth Pakistan were among the top gainers, up by Rs15.70 and Rs40, followed by EFU Life, Honda Atlas, Pakistan Cables, Engro Chemical, Suzuki Motors, Indus Motors, Millat Tractors, Siemens Pakistan, Ferozsons Lab, Treet Corporation, HinoPak and Artistic Denim, up by Rs4.15 to Rs9.65.
Losers were led by Abbott Lab and Unilever Pakistan, off Rs4.70 and Rs5. Other prominent losers included Javed Omer, despite bonus shares of 50 per cent, Berger Paints, Pak Datacom, Unilever Pakistan, Abbott Lab, Arif Habib Securities, and Al-Ghazi Tractors, off Rs3.20 to Rs5.
Trading volume fell to 305m hares from the previous 362m shares at the last weekend as gainers held a strong lead over the losers at 194 to 130, with 40 shares holding on to the last levels.
PTCL led the list of actives, up by 40 paisa at Rs65.05 on 85m shares followed by D.G.Khan Cement, higher by Rs3 at Rs73.50 on 50m shares, National Bank, up by Rs1.80 at Rs142.30 on 37m shares, Fauji Fertilizer Bin Qasim, lower 50 paisa at Rs36.40 on 16m shares, Fauji Cement, firm by 15 paisa at Rs16.10 on 13m shares, Bank of Punjab, steady by 35 paisa at Rs113.75 on 9m shares, MCB, up by 45 paisa at Rs126.20 also on 9m shares.
Other actives were led by Sui Northern Gas, higher by 35 paisa on 8m shares, Bosicor Pakistan, up by Re1 also on 8m shares and Pakistan Petroleum, firm 25 paisa on 7m shares.
FORWARD COUNTER: PTCL came in for active support on this counter and rose by Rs1.22 at Rs66.22 on 139m shares followed by D.G.Khan Cement, higher by Rs2.40 at Rs73.35 on 8m shares and National Bank, up by Rs2.50 at Rs142.90 on 7m shares.
Pakistan Petroleum on the other hand was marked down by 10 paisa at Rs193.80 on 5m shares, followed by OGDC, easy by 78 paisa at Rs112.87 on 4m shares, and some others showed either-way changes. The notable feature was that trading also resumed in the October settlement where PSO and Engro Chemical showed smart gains on active forward support.
DEFAULTER COS: Modest trading was witnessed on this counter where some of the recent actives were marked up by Re1 under the lead of Metropolitan Steel, Crescent Board and Morafco Industries at Rs10.85, Rs17 and Rs18 respectively.
DIVIDEND: Balochistan Wheels, cash 15 per cent, bonus shares of an identical amount, Elite Capital Modaraba, cash 6 per cent, Javed Omer Vohra, bonus shares 50 per cent, Buxly Paints, cash 12.5 per cent, Artistic Denim, cash 80 per cent, D.M.Textiles 10 per cent, Shams Textiles 17.5 per cent, Fecto Sugar 15 per cent, Zahidjee Textiles, 7.5 per cent, Dadex Eternit, 35 per cent, Saudi Pak Leasing cash 10 per cent, bonus shares 10 per cent, right shares 60 per cent, and Prudential Modaraba, 2.5 per cent.
KARACHI, Sept 26: Stocks on Monday shrugged off the weekend hesitancy and finished recovered across-the-board under the lead of blue chips on active short-covering at the lower levels.
However, bank shares did not look back and maintained their upward drive on fresh covering purchases triggered by reports of higher interim earnings and market talk of enhanced dividend.
