KARACHI, June 2: Stocks on Monday remained unsettled as investors were not inclined to take fresh positions despite reports of some positive developments on the LFO issue and a possible agreement between the MMA and the government.
The KSE 100-share index recovered 4.87 points, closing above the crucial level of 3,100 at 3,103.91, although most of the leading base shares lacked normal trading interest.
But the trading was terribly dull ahead of the Privatization Commission meeting in Islamabad to set the final date of bidding for the oil giant PSO and some other major state-owned units including Habib and the KESC. All eyes remained focused on these dates, which could give the needed push to the prevailing market stance.
Energy shares reacted positively to the increase in prices of petroleum products after about two months status quo and rose sharply under the lead of Pakistan Refinery and Shell Pakistan, which rose by Rs7.50 and Rs9.65 respectively. Some of the leading textile shares also performed well amid expectations of higher dividend for the last financial year.
Floor brokers said the market will be essentially guided by the announcement of firm dates for the state-owned units sell-off through the country’s stock exchanges and until then trading may remain volatile.
The LFO issue as it stands may not be that easy to resolve as it demands too much give and take from both sides of the divide, the latest press reports including those from the MMA, however, indicate that ice at last has been broken on some of the contentious issues including president uniform.
“The chief worry of the government is the approval of the national budget due to be announced on June 7,” analysts said. “Opposition has already vowed not to allow the passage of the budget if there is no deal on the LFO.”
However, a sharp decline in the traded volume to only 123m shares reflects that investors are not inclined to ride the bandwagon just in one go as they have their own perceptions of the stake involved in any government-political deal.
There is also a loud whispering in the corporate sector about the winding up of the system by the president if an agreement was not reached on broad outlines of the future power-sharing formula.
The market is, therefore, caught in the whirpool of political constraints as investors could not precisely decide how to react to the developing situation and changing political scenario.
Losing shares dominated the list under the lead of pivotals such as Millat Tractors, Atlas Honda, Abbott Lab, Reckitt and Benckiser, IGI Insurance, Janana Demalucho Textiles, Burewala Textiles, IGI Insurance, Central Insurance, Grays of Cambridge and Treet Corporation, which suffered fall ranging from Rs2 to 5.
Leading gainers, Pakistan Reinsurance Co, Blessed Textiles, Jahangir Siddiqui & Co, Faisal Spinning, Fazal Textiles, Sapphire Textiles, Dawood Cotton, Pakistan Oilfield, Atlas Battery, Clover Pakistan, Nestle MilkPak, Dreamworld, Pakistan Services, Colgate Pakistan, Habib Securities and Wyeth Pakistan, up Rs2 to Rs20.10.
Some of the leading index shares did find support at the lower levels and allowed it to finish modestly higher as losers maintained a strong lead over the gainers at 214 to 136, with 42 shares holding on to the last levels.
PTCL led the list of actives, up five paisa at Rs25.85 on 26m shares, D.G. Khan Cement, higher 45 paisa at Rs20.20 on 11m shares, Hub-Power, lower 10 paisa at Rs34.90 on 9m shares, Dewan Motors up 55 paisa at Rs18.30 on 7m shares and PSO, higher by 70 paisa at Rs214.40 on 6m shares.
Other actives were led by Sui Northern Gas lower 20 paisa on 5m shares, Pakistan Oilfields higher by Rs2.30 also on 5m shares, Attock Cement, lower 50 paisa on 4.911m shares, KESC, easy 10 paisa on 4m shares and Nishat Mills, lower 15 paisa on 3m shares.
FORWARD COUNTER: Easy conditions prevailed on the forward counter where all the leading shares finished with fractional decline on stray selling and slack demand. The notable feature was that the matured May settlements were run of the board and settlement of outstanding dues will be held on June 4.
PTCL led the list of actives, easy by five paisa at Rs25.95 on 5m shares, followed by Hub-Power, lower by 16 paisa at Rs35 on 4m shares, PSO, up 30 paisa at Rs213 on 3m shares and Sui Northern Gas, lower 20 paisa at Rs32.10 also on 3m shares.
DEFAULTER COMPANIES: Active trading was witnessed on this counter where shares of over two dozen companies came in for trading. Medi Glass was leading among the actives, up 45 paisa at Rs2.95 on 91,500 shares followed by Pangrio Sugar, easy five paisa at Rs1.85 on 83,000 shares, Schon Modaraba, lower 10 paisa at Rs0.90 on 37,000 shares and National Modaraba, up five paisa at Rs1.25 on 36,000 shares.