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STOCKS showed either-way movements during the last week amid some external negative and positive under currents but larger decline was averted, thanks to the presence of support at the dips, notably on the selected counters.
But as expected, year-end buying failed to make any significant showing, apparently weighed down by the political tensions in the backdrop of anti-Kalabagh rallies.
Viewed in the backdrop of last six weeks’ sustained run-up, a technical breather was a long overdue. But as the advent of widely speculated year-end buying failed to make a bigger showing despite reports of settlement of the PTCL sell-off deal, weaker market links sell at the higher levels, keeping it unsettled.
Broader market, however. did rose in patches but the anticipated PTCL-led buying euphoria faded under the growing weight of selling under the lead of some leading index-based and blue chips in the bank and cement sectors.
After fluctuating either-way, the KSE 100-share index finally finished with a modest fall of 23.36 points at 9,491.47 as compared to 9,514.83 a week earlier, reflecting the weakness of PTCL and some other leading base shares.
Most analysts believe there is nothing wrong with the basic market fundamentals, some of the external factors, notably rigid positions taken by the contenders on the Kalabagh dam issue and allied political tensions seem to have worked against the underling sentiment But larger fall was averted.
Developing situation on the political front including anti-Kalabagh rallies could interrupt the market buoyant run temporarily and so do the settlement of the pending PTCL sell-off deal until details of the of negotiated deal are not announced. Brokers also said that the payment period of five years against the total proceeds is too long and anything could happen during the intervening period.
Stocks, however, resumed trading on a firm note aided by reports of completion of PTCL deal with Etisalat but failed to sustain the early buying euphoria on late selling.
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Selective support, however, figured prominently on a number of counters which enabled the market to finish with an extended gain in an actively traded session.
However, the reports of final settlement of PTCL sell-off deal with Etisalat after prolonged talks at the original price of $2.598 billion was welcomed by the market but early euphoria could not be sustained till the close.
The breakthrough apparently achieved after reported intervention at the highest levels and the completion of the transaction was announced by both the parties. The settlement was announced after Tuesday’s Dubai meeting between the Pakistani and Etisalat officials.
Analysts attributed the late sell-off in PTCL and other pivotals owing to lack of details of the final settlement which will be announced early next month. Fears that a period of five years is too long to make final payments against the total sale proceeds and anything could happen in the intervening period, they said.
“Investors are, however, warned not to go by the reported breakthrough and play safe”, said a leading stock analyst adding, ‘they could opt for other issues currently under the process of privatization including PSO, Pakistan Petroleum and OGDC pending the details of the final PTCL settlement to satisfy their buying craze”.
But some others said, the late sell-off in PTCL could be tactical as some of the leading brokers may have sold in a haste to push its price down and then to buy at the lower levels for capital gains after the details of the deal are announced.
PTCL soon after the opening rose to week’s peak level of Rs67.70 in response to press reports but progressively fell to close slightly above the day’s lowest as investors resorted to profit-selling.
However, this is not to say that the market would not respond to some other positive news from the corporate sector and there is no reason to believe that the year-end covering operations may not add to its relative strength before the year is out.
Barring National Bank which came in for active profit-selling at the higher levels, other bank shares maintained their upward drive and rose under the lead of MCB, Bank of Punjab and some others.
Profit-selling in National bank was attributed to analyst predictions that the 100 per cent bonus shares announced by the Bank Al-Jazira of Saudi Arabia in which it has a big stake, may not have a major positive financial impact on its share price.
Leading gainers were led by Unilever Pakistan and Wyeth Pakistan, Sapphire Fibres, National Bank, MCB, Artistic Denim, Gillette Pakistan, Pakistan Oilfields, Engro Chemicals, Shezan International and many others.
Siemens Pakistan and National Refinery led the list of losers followed by Attock Petroleum, Lakson Tpbacco, Shell Gas, Colgate Pakistan, Central Insurance, Pakistan Engineering Shell Pakistan, Sanofi Aventis, Tahl Corporation and Quetta Textiles.
CLEARD LIST: Barring MCB and some other leading shares, speculative shares on the forward counter rose from the previous lower levels on active short-covering. Nishat Mills, OGDC, National Bank. PTCL and some others were leading among the gainers.—Muhammad Aslam
