KARACHI, Jan 19: Stocks on Friday consolidated previous gains and maintained a status quo despite the weakness of leading oil shares owing to fall in international prices below the $50 but the broader market performed well.
However, the weakness of the oil sector was well-absorbed as most of the blue chips on the other counters neutralised its negative fallout amid active short-covering at the dips, floor brokers said.
Apprehensions linked to new central bank monetary policy in regard to hike in interest rates were also allayed after its announcement, allowing investors to operate according to their perceptions, they said.
After higher opening owing to active follow-up support in some of the pivotals, stocks, therefore, finished fractionally higher despite weekend profit-selling in leading oil shares.
The KSE 100-share index failed to maintain the early run-up but demonstrated that it could explore new highs in the coming sessions on the strength of higher corporate payouts.
It finally finished fractionally higher by 0.60 point at 10,641.31 after at one stage having risen to 10,689 points but late selling in some of the leading base shares pushed it down from the peak level.
But on the other hand KSE 30-share index posted a fresh gain of 27.74 points at 13,392.77 as leading base shares rose further on active support.
Indications are that the dividend-related working results are expected to come in a bigger way as some of them are now due and could attract fresh support from the speculative forces.
But some brokers said the next week could well prove very crucial as investors would like to play safe owing to long weekend ahead with the advent of Muharram.
Analysts stocks whose dividend announcements for the year ended Dec 31, 2006 are due to come performed well under the lead of bank and fertiliser shares, despite the fact that Dawood Hercules’ final dividend was well below the market expectations and worked against its share value for the third session in a row.
But all eyes are now focused on Engro Chemical and Fauji Fertiliser whose earnings are said to be much higher as compared to previous year because of sharp increase in sales, they added.
However, banking sector is expected to provide the needed link between the bulls and bears on the strength of their earnings and near-status quo for them in the new monetary policy announced by the central bank on Thursday.
Leading oil shares on the other hand remained under pressure followed by reports of fresh dips in the world oil prices and sympathetic selling in some of them.
Plus signs dominated the list under the lead of Lakson Tobacco and Siemens Pakistan, up by Rs25.85 and 54.50 followed by Clariant Pakistan, Gillette Pakistan, Ferozsons Lab, and Jahangir Siddiqui & Co., Nestle Pakistan and Treet Corporation, which posted gains ranging from Rs6.10 to 10.
Losses on the other hand were fractional barring Shell Pakistan, Dawood Hercules, Pakistan Oilfields, Shell Pakistan, PSO, Colgate Pakistan and Attock Petroleum, off Rs2.80 to 7.50.
Trading volume fell further to 150m shares from the previous 169m shares but gainers maintained a fair lead over the losers at 156 to 109, with 40 shares holding on to the last levels.
Fauji Fertiliser Bin Qasim topped the list of actives, higher by Rs1.10 at Rs30.25 on 20m shares followed by OGDC, off Rs1.65 at Rs116 on 9m shares, Hub-Power, up Rs1.10 at Rs30.80 also on 9m shares, National Bank, higher by Rs1.60 at Rs258.65 on 8m shares and Sui Southern Gas, firm by Rs1.25 at Rs27 on 6m shares.
Other actively traded were led by Pakistan Petroleum, steady 10 paisa on 6m shares, KESC, lower 10 paisa also on 6m shares, D.G.Khan Cement, easy 40 paisa on 6m shares, MCB, up 95 paisa on 5m shares and PTCL, lower 65 paisa also on 5m shares.
FORWARD COUNTER: National Bank came in for active support on the cleared list and was marked up by one rupee at Rs259 on 3.770m shares followed by Fauji Fertiliser Bin Qasim, higher by Rs1.15 at Rs30.40 on 3.675m shares, and MCB, firm by 50 paisa at Rs270 on 3m shares.
Pakistan Petroleum followed them, lower by Rs1.20 at Rs245.15 on 3m shares and OGDC, off Rs2 at Rs116 also on 3m shares.
DEFAULTER COS: Norrie Textiles led the list of actives, unchanged at Rs4.20 on 0.829m shares followed by Nimir Chemicals, easy five paisa at Rs3 on 0.386m shares and Zeal Pak cement, up 50 paisa at Rs4 on 0.373m shares.
Crescent Standard, Harum Textiles and Unity Modaraba were also actively traded amid alternate bouts of buying and selling.
