KARACHI, Dec 26: Trading volume on the stock market on Monday fell to a year’s lowest ebb at 149m shares in the absence of strong buying on any of the counters even at the falling prices, but larger decline was averted on stray support at the dips. The KSE index shed 120 points at 9,371.52 points.
Cash dividends for the last year ended Sept 2005 by the sugar sector were on the higher side of the analysts’ predictions and should have triggered fresh buying but weakness of the oil sector weighed heavily against the underlying sentiment.
The selling, however, appeared to be technical as some of the leading investors started squaring forward positions on the cleared list evoking sympathetic profit-taking on the ready counter. The maturing December settlements will be rung-off the board on the coming Friday.
Stocks resumed trading on a terribly volatile note as investors squared positions on the forward counter from the maturing December settlements to the newcomer January contracts, having negative fallout on the ready section.
The KSE 100-share index suffered a massive pruning, off 119.95 points or 1.26 per cent, at 9,371.52 as compared to 9,491.47 a week earlier as leading base shares including PTCL, OGDC and National Bank came in for active selling at the inflated levels.
But the steep decline in the traded volume to 149m shares, current year’s lowest one, reflected general investors held on to their positions ignoring the negative fallout of the forward counter.
“Incidentally this a rollover week and the last week of the calendar year 2005”, says a leading stock analyst “financial institutions squared their positions and adjusted portfolio to open new year account on a positive note”.
The rolling of positions from one forward contract to the other generally upsets the set trading pattern on the ready counter and it appears to be more tactical rather than genuine, some others said.
“Not in a single session during the last week, the year-end buying made any bigger showing and its advent is now overdue”, they said adding “the next couple of sessions of the fading year could be very crucial and may lead to a buying euphoria”.
The current index level above 9,000-point indicates that the market will close the current year account on a positive note after having passed through a many rough weeks alone on technical grounds, brokers said.
“The negative political fall-out of the Kalabagh dam from now onward may not remain an irritant for investors as the government has reportedly decided to take the issue to the Supreme Court”, they said.
Leading gainers were led by Gillette Pakistan and Wyeth Pakistan, up by Rs9.05 and Rs11, followed by Arif Habib Securities, Dadex Eternity and Bata Pakistan, which rose by Rs3 to Rs4.15.
Prominent losers were led by Attock Petroleum and Shell Pakistan, off Rs11.50 and Rs19.90 respectively. Other notable losers were Nishat Mills, National Refinery, PSO, National Foods, Premier Sugar, Thal Corporation, Adamjee Insurance, Zulfiquar Industries and Jahangir Siddiqui & Co, off Rs4.50 to Rs8.15.
Trading volume fell to 149m shares from the previous 255m shares as losers forced a strong lead over the gainers at 241 to 141, with 40 shares holding on to the last levels.
Low-priced Nimir Chemicals led the list of actives, up by 40 paisa at Rs7.80 on 11m shares followed by OGDC, off Rs1.10 at Rs116.15 also on 11m shares, National Bank, lower Rs1.70 at Rs196.30 on 10m shares, Nishat Mills, sharply lower by Rs5.55 at Rs111 on 9m shares, Lucky Cement, up by 35 paisa at Rs78.40 on 7m shares, D.G.Khan Cement easy 40 paisa at Rs106.35 on 7m shares and PTCL, off Rs1.35 at Rs64.40 on 5m shares.
Other actives included Fauji Fertilizer Bin Qasim, lower 85 paisa on 6m shares, PIAC, easy 60 paisa on 4m shares and Chenab Fibre, higher by Rs1.05 also on 4m shares.
FORWARD COUNTER: Nishat Mills, which has been in strong dividend-related demand came in for active selling at the higher levels and fell by Rs5.60 at Rs111.25 on 5m shares, National Bank, off Rs1.40 at Rs197.10 on 3m shares and OGDC, lower 70 paisa at Rs116.40 also on 3m shares.
But on the other hand Lucky Cement, rose by 45 paisa at Rs78.70 on 3m shares but its January contract fell by 35 paisa at Rs79.90 on 3m shares.
The notable feature was that trading also commenced in the newcomer January settlements side by side the maturing December contracts.
DEFAULTER COS: Active trading was witnessed in the leading modaraba shares on rumours of managmenet changes and rose under the lead of Unity Modaraba, up by 20 paisa at Rs1.50 on 1.268m shares followed by Quice Foods, higher by 15 paisa at Rs2.40 on 0.786m shares.
Unicap Modaraba, Interfund and Schon Modaraba also came in for modest support and rose by 15, 20 30 and paisa at Rs1.45, Rs2.25 and Re1 on 0.157m, 0.129m and 0.102m shares respectively.
DIVIDEND: Al-Abbas Sugar, cash 30 per cent, Shahtaj Sugar 55 per cent, Chashma Sugar 10 per cent, Premier Sugar, 20 per cent 20 per cent interim already paid, Frontier Sugar, 15 per cent and 7 per cent on ordinary and preference shares respectively.
KARACHI, Dec 26: Trading volume on the stock market on Monday fell to a year’s lowest ebb at 149m shares in the absence of strong buying on any of the counters even at the falling prices, but larger decline was averted on stray support at the dips. The KSE index shed 120 points at 9,371.52 points.
“Not in a single session during the last week, the year-end buying made any bigger showing and its advent is now overdue”, they said adding “the next couple of sessions of the fading year could be very crucial and may lead to a buying euphoria”.
