KARACHI, Sept 27: Stocks on Tuesday failed to extend the overnight recovery as some of leading base shares came in for active profit-selling at the higher levels under the lead of PTCL ahead of its annual board meeting.

The omission of final dividend by the PTCL management weighed heavily against the sentiment against analysts’ predictions of around 35 per cent. Although its share value reacted by Rs1.05 on selling by some of the leading brokers who may have information about it.

The official announcement was made at 2.10 p.m., only five minutes before the closing bell at 2.15 p.m. As a result, an interim cash dividend already paid became final. EPS also fell to Rs5.22 from the previous Rs5.72.

The broader market, however, maintained its upward drive led by the cement sector and those shares whose board meetings are around and the market talk of a good dividend, notably from leading textile shares.

The KSE 100-share index on the other hand remained under pressure on renewed selling in PTCL at the higher levels in the backdrop of overnight pre-dividend run-up.

The index early touched the session’s high at 8,254.03 after having fallen at one stage to 8,178.69, but late covering purchases at dips allowed it finish partly recovered at 8,195.28, off 22.19 points.

The market was highly volatile ahead of the board meeting of PTCL and conflicting reports about its final results, including EPS and dividend, analysts said. An idea of erratic movements in share value may well be had from the fact that it touched the session’s low at Rs63.25 and high at Rs66.55.

Although its results reached the market close to the final bell, some adverse comments on the second half earnings triggered selling and it finished reacted, losing the entire overnight gain.

“I don’t think the reaction was caused by the working results, which were in line with the analysts’ predictions. The sell-off was caused by reports from its privatization process and the delayed management change,” a broker said.

“Reports that the PTCL sell-off was not discussed in the cabinet meeting prior to the acceptance of final bid at $1.17 per share may have created doubts in the investor’s mind and the consequent sell-off,” some others claim.

It was perhaps in this background that the KESC sell-off to Hassan Associates at Rs1.65 per share failed to produce desired impact on the share business. The Privatization Commission has invited the second-highest bidder to improve its bid price but decided to maintain the old price after the withdrawal of the Saudi buyer.

Owing to prevailing confusion on some vital issues, investors tried to take profit at the available margins under the lead of index shares, notably banks.

Millat Tractors maintained its post-dividend upward drive and finished with an extended gain of Rs13.90, followed by AKD Securities, up Rs16.45. Other good gainers included Indus Dyeing, Premier Sugar, Kohat Cement, JWD Sugar, Honda Atlas, Siemens Pakistan, BOC Pakistan, Dreamworld, Adamjee Insurance, Atlas Honda, Wyeth Pakistan, and Treet Corporation, up by Rs3 to Rs13.90.

Prominent losers were lead by some inactive shares, notably Zulfiquar Industries and Bhanero Textiles, off Rs6.90 and Rs14.25, respectively, followed by Yousuf Textiles, Arif Habib Securities, United Sugar, National and Pakistan Refinery, Nestle MilkPak, National Foods and Zulfiquar Industries, off Rs4.25 to Rs6.90.

Trading volume rose to 350m shares from the previous 305m shares as gainers maintained a fair lead over losers at 189 to 165, with 42 shares holding on to the last levels.

PTCL again topped the list of most actives, off Rs1.05 at Rs64 on 57m shares, followed by DG Khan Cement, up 95 paisa at Rs74.45 on 50m shares, Fauji Fertilizer, higher by Rs1.15 at Rs37.55 on 43m shares, National Bank, easy five paisa at Rs142.25 on 28m shares, MCB, lower 70 paisa at Rs125.60 on 19m shares, Bank of Punjab, up 30 paisa at Rs114.05 on 11m shares, and Pakistan Petroleum, higher by Rs1.65 at Rs195.50 on 12m shares.

Other actives were led by OGDC, easy 10 paisa on 15m shares, Nishat Mills, up 70 paisa on 12m shares, and Fauji Cement, up 20 paisa on 11m shares.

FORWARD COUNTER: PTCL also came in for active selling on the cleared list and was marked down by 37 paisa at Rs63.85 on 11m shares, followed by DG Khan Cement, higher by Rs1.45 at Rs74.80 on 8m shares, and Pakistan Petroleum, up Rs2.10 at Rs195.90 on 7m shares.