KARACHI, Oct 11: Stocks on Thursday lacked aggressive speculative buying witnessed during the last two sessions as investors took stock of their inventories before making fresh commitments. The KSE 100-share index rose by 10.69 points at 1,179.67.
Trading volume showed a sharp decline at 120 million shares as all the Wednesday’s bad rumours failed to get currency followed by subsequent events and positive developments. The idea that the regime is in place reassured the investors of continued bull-run in the coming sessions too.
“The recovery may be slow if the market remains dependent on local support but if the foreign funds stay though on a modest scale, their presence could give the needed push to the speculated run-up”, analysts said.
The underlying sentiment, however, remained uppishly inclined thanks to active follow-up support on the blue chip counters but there was no matching selling as leading bears kept to the sidelines anticipating further rise in prices.
After opening higher, the KSE 100-share index managed to finish modestly higher by 10.69 points at 1,179.67 as compared to 1,168.98 a day earlier, reflecting the strength of leading base shares.
Unlike the previous couple of sessions, when PTCL proved a star performer and volume-leader including yesterday’s 105 million shares, heavy buying in Hubco relegated it into the secondary position.
Reports that the Lahore High Court has revalidated power rate agreements with the Independent Power Producers (IPPs), seem to have triggered fresh speculative buying in
the low-priced Hubco share, dealers said.
But what appears to have caused hectic short-covering in it was company’s announcement about the book closure, which investors think will follow by the date of annual meeting and lenders approval of 17 per cent interim dividend already declared, they added.
“Whether or not the management of the Hubco will opt for a final dividend will largely depend on its lenders perceptions but market sources expect one basing their assessment on its hefty annual profits”, some analysts predict.
Bulk of the support, therefore, remained confined to its share, which alone accounted for two third of the total volume, with a good gain. PSO, an leading energy share also came in for active support followed by higher profits. Its board will meet on Oct 17, to approve the accounts.
Floor brokers said foreign support was not that aggressive as it has been during the last two sessions, institutional traders remained active on selected counters and kept the market in good shape all through the session.
It was perhaps because of this fact that prices changes were mostly fractional with the exception of Adamjee Insurance, Fazal Textiles, Bata Pakistan, Gulistan Textiles, Shell Pakistan, International Industries, Wyeth Pakistan and Knoll Pharma, which posted gains ranging from one rupee to Rs3.30.
Losers were led by Lever Brothers, Dawood Hercules, Din Textiles, EFU Life, Pakistan Oilfields and Central Insurance, which suffered fall ranging from one rupee to Rs.3.00.
Trading volume showed sharp fall from the overnight hefty figure of 196m shares at 121m shares as gainers held a modest lead over the losers at 64 to 59, out of 159 actives.
Hub-Power topped the list of most actives, up 60 paisa at Rs.14.80 on 56m shares followed by PTCL, higher 25 paisa at Rs.15.05 on 41m shares, Engro Chemical, lower 30 paisa at Rs.46.45 on 6m shares, PSO, up 40 paisa at Rs.104.80 also on 6m shares and Fauji Fertilizer, higher 75 paisa at Rs.36.75 on 3m shares.
Other actives included Sui Northern Gas, firm by 20 paisa on 2.480m shares, Bank of Punjab, higher 55 paisa on 2m shares, Adamjee Insurance, up one rupee on 0.594m shares, Dewan Salman, steady by 15 paisa on 0.480m shares and MCB, higher 25 paisa on 0.479m shares.
FUTURE CONTRACTS: Bulk of the alternate bouts of buying and selling remained confined to Hub-Power and PTCL, which ended lower by 25 and 45 paisa at Rs.15.00 and 15.50 respectively on 2.562m and 1.750m shares.
Among the losers PSO and Engro Chemical were prominent, off Rs.2.70 and 2.50 at Rs.104.95 and 46.50, while all others showed fractional changes. Turnover figures rose to 5.097m shares from the previous 2.309m shares.
DEFAULTER COMPANIES: Allied Motors remained in active demand and was quoted unchanged at the Rs.3.00 on 3,000 shares followed by Hydery Construction, firm by 10 paisa at Rs.0.95 on 1,000 shares and Qayyum Textiles unchanged at Rs.0.35 on 500 shares.
DIVIDEND: Pakistan Cables, cash 20 per cent for the year ended June 30,2001.