Renewed short-covering helps index recover 264 points
By Our Staff Reporter
KARACHI, Feb 28: Stocks on Tuesday were back on the rails followed by active short-covering in the leading oil and bank shares at the overnight lower levels amid an actively traded session.
The market’s buoyant mood was also well reflected in the KSE 100-share index, which recouped a good part of the overnight loss and was marked up by 264.52 points at 11,456.27 as compared to 11,191.75 a day earlier, reflecting the strength of the leading base shares.
“The index owes its strength or weakness to half a dozen leading base shares, notably in the energy sector, which push it down or up according to the whims of leading stakeholders”, some analysts said, adding “that is bad both for the broader market and the general investors”.
Most of the leading base shares ended fully recovered amid upper locks at the previous dips depending on the strength of some foreign buyers and local punters.
There was no overnight panic after the trading resumed as investors re-entered the market with large buying orders in the leading base shares, notably OGDC, Pakistan Oilfields, Pakistan Petroleum, National Bank, Faysal Bank, MCB and Bank of Punjab driving bears out of the market at least for the near-term.
National Bank finished at its career-best level followed official announcement that its management was selling its stakes in Bank al-Jazira, which would significantly add to its capital gains.
Apart from strong buying at the dips on selected counters, the other aiding factor was reports of pre-bid conference on March 2 for the sell-off of controlling shares of the oil giant Pakistan State Oil (PSO) to a strategic buyer, analysts said.
Interim dividend news from half a dozen companies including Adamjee Insurance and Glaxo-SKF were on the higher side of the market perceptions and so were some others, which was an aiding factor behind the snap rally.
“The choked broker limits due to overlapping of future positions on the forward counter, however, restricted the scale of activity”, says a leading broker commenting on the snap rebound.
Leading gainers were led by Dawood Hercules and Pakistan Oilfields which gained Rs19.70 and Rs20.95, followed by Arif Habib Securities, MCB, Attock Petroleum, Pakistan Petroleum, Sanofi-Aventis, Unilever Pakistan, IGI and National Bank, which posted gains ranging from Rs10.95 to Rs20.
Prominent losers included Treet Corporation and Siemens Pakistan, off Rs19.45 and Rs57.20 respectively. Other leading losers were led by Nishat Chunian, Atlas Honda, Zulfiquar Industries and Jahangir Siddiqui Capital Markets, off Rs6.95 to Rs10.20.
Trading volume rose to 419m shares from the previous 374m shares as gainers held a strong lead over the losers at 239 to 131, with 31 shares holding on to the last levels.
D.G.Khan Cement topped the list of actives, up by Rs4.60 at Rs147.10 on 56m shares followed by National Bank, higher by Rs15.70 at Rs330.20 on 51m shares, OGDC, up by Rs3.80 at Rs146.90 on 47m shares, Pakistan Oilfields, sharply higher by Rs20.95 at Rs613.80 on 25m shares, MCB, higher by Rs11 at Rs261 on 23m shares, Pakistan Petroleum, higher by Rs11.25 at Rs298.10 on 17m shares and Bank of Punjab, up by Rs3.65 at Rs113.55 on 15m shares.
Other actives were led by Nishat Mills, up by Rs6.50 on 15m shares, Bosicor Pakistan, higher by Rs1.55 on 12m shares and Fauji Fertilizer Bin Qasim, higher by Rs1.25 on 11m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives on this counter, up by Rs8 at Rs303 on 32m shares followed by National Bank, higher by Rs16 at Rs336.40 on 15m shares and OGDC, firm by Rs2.10 at Rs150.20 on 11m shares.
Other actives included D.G. Khan Cement, up by Rs4.40 at Rs150.40 on 10m shares and Pakistan Oilfields, higher by Rs21.15 at Rs622.50 on 8m shares.
DEFAULTER COS: Quice Foods again came in for active support and rose by Re1 at Rs7.25 on 0.723m shares followed by Crescent-Standard Bank and Dandot Cement, lower by 10 and 25 paisa at Rs10.35 and Rs11.50 on 0.198 and 0.181m shares respectively. Others were modestly traded amid fractional price changes.
DIVIDEND: Adamjee Insurance, cash 15 per cent, bonus shares 10, per cent, Glaxo-SKF, cash final 80 per cent, International General Insurance, cash 40 per cent, bonus shares 30 per cent, Bank Alfalah, bonus shares 33.33 per cent, Jahangir Siddiqui Investment Bank, interim cash 16 per cent, Capital Mutual Fund, right shares 100 per cent and Ghani Glass, interim cash 20 per cent.
