KARACHI, Dec 10: Stocks on Monday resumed trading on a higher note but as follow-up support remained shy most of the leading shares finished with clipped gains followed by late profit-selling.
All eyes remained focused on the PTCL board meeting and hopes of some positive announcement regarding widely speculated interim dividend but there was none till the close and the consequent selling.
The KSE index early was up by about eight points on active support ahead of PTCL board meeting and market talk of an interim dividend but as there was no announcement from its management till the closing bell, weakholders took profit at the initial rise.
It finally ended lower by 3.60 points at 1,379.36 as compared to 1,383.00 at the fag-end of the last week as leading base shares including PTCL and Hubco ended lower.
“Rumours trickling in from Islamabad PTCL board meeting indicated a big rise in quarterly profit to about Rs.5 billion but in the absence of any formal official announcement on the subject day traders sold in part their long positions,” analysts at the W.E.Financials said.
“No business no margins,” they jokingly said commenting on the falling daily volumes below the average figure of 100m to 30m shares.
However, some of the news, notably 12.5 per cent increase in the textile quota to various countries including the US and some positive developments on the privatization front of PSO evoked good interest earlier in the session but as the follow-support lacked, most of the pivotals reacted on selling.
“The market seems to have digested all the good news on the aid front and is in search of some fresh stimulants to keep it in a good shape,” stock analysts at AHRL said.
“Whether or not the investor perceptions assisted by counter market forces will play their due role in the sessions prior to the Eid holidays is unclear,” they added.
But stock analysts at the Moosani Securities believe the current sluggishness is temporary as the market has now a viable financial base on which it could build up a strong rally before the year is out.
It was perhaps in this background that the broader market performed well, while pivotals finished reacted under the lead of Shell Pakistan and Noon Pakistan, which fell by Rs.1.95 to 2, while others fell fractionally.
BOC Pakistan again responded favourably to 100 per cent final cash dividend plus 20 per cent bonus shares adding another Rs.7.10 to the weekend gain at Rs.102.20 on 20,600 shares.
Other to follow it were Century Insurance, Farooq Habib Textiles, Ismail Industries, Al-Ghazi Tractors, Millat Tractors and Quetta Textiles, up by one rupee to Rs.3.
Trading volume was light at 35m shares but gainers held a fair lead over the losers at 71 to 58, out of 189 actives.
Hub-Power led the list of actives, lower 30 paisa at Rs.17.85 on 17m shares followed by PSO, unchanged at the Rs.100.75 on 3m shares, Adamjee Insurance, up 95 paisa at Rs.38.05 on 3m shares, PTCL, which was quoted spot lower 15 paisa at Rs.18 also on 3m shares and Engro Chemicals, easy 20 paisa at Rs.56.75.
Other actives were led by MCB, firm by 10 paisa on 1.168m shares, ICI Pakistan off 60 paisa on 1.088m shares and Fauji Fertilizer, easy five paisa on 0.815m shares.
NATIONAL BANK: Its share came in for strong support after official announcement that all the applicants to its issue will be accommodated as the number of applications is less than the available shares. Both the government and the central bank have also allowed the disinvestment of their five per cent each shares. It ended at Rs.14, up 60 paisa on 2.5m shares.
FUTURE CONTRACTS: Forward counter showed mixed trend as gainers and losers were evenly matched. Hub-Power was again a volume leader, easy 35 paisa at Rs.18.05 on 2.041m shares followed by PTCL, lower 6 paisa at Rs.16.04 on 1.698m shares. But January settlements of the both ended higher by 64 and 30 paisa at Rs.18.40 and 16.40 respectively. Other prices changes were fractional barring PSO, which rose by 50 paisa at Rs.101.50 on 39,000 shares.
DEFAULTER COMPANIES: Allied Motors came in for active support and rose by five paisa at Rs.3.05 on 4,000 shares, while Burma Oil fell by 60 paisa at Rs.8.10 on 500 shares.
DIVIDEND: Capital Asset Leasing, bonus shares 17.5 per cent, United Insurance, cash five per cent bonus shares one per cent, First Punjab Modaraba, cash 10 per cent, Kohinoor Power five per cent, Bestway Cement five per cent, First Crescent Modaraba, 7.5 per cent, Jahangir Siddiqui Investment Bank, right shares at the rate of 25 per cent First Constellation Modaraba cash five per cent, Wah Nobel Chemicals, cash 50 per cent, plus right shares of 100 per cent, Lafyette Industries, Dewan Farooque Motors, Southern Electric Power, First Mutual Fund, First Leasing Corporation, Tri-Star Mutual Fund, First and Second Tri-Star Modaraba, Tri Star Polyester, Pakistan PVC, Chakwal Cement, the machinery is under erection, no profit or loss account, Metropolitan Steel, Pakistan Fisheries, Gammon Pakistan, and Associated Industries, all nil for the year ended June 30, 2001.