KARACHI, Sept 9: Stocks on Tuesday turned mixed followed by profit-selling by a section of investors at the inflated levels but the underlying sentiment remained uppishly inclined. The KSE 100-share index finished with an extended gain of 40.93 points.
The total market capitalization surpassed its previous best figure of Rs707bn at Rs1,008, up Rs9bn as massively capitalized shares, notably PTCL and PSO maintained their upward drive. The credible performance of the broader market was another supporting factor.
The KSE 100-share index finished with an extended gain of 40.93 points at 4,546.97 as compared to previous 4,506.04 owing to massive activity in PTCL, which holds a weightage of 33 per cent in it.
Trading activity remained fairly brisk throughout the session as the traded volume swelled to 536m shares including 100m shares in the PTCL.
The board of directors of Indus Motor Company has declared final dividend at the rate of 50 per cent or Rs5 each share. Together with the interim of 20 per cent, the total comes to 70 per cent or Rs7 per share. But its share fell by Rs3.25 on post-dividend profit-selling.
Floor brokers said liquidity-driven rally supported by coming board meetings of some leading companies including Pakistan Oilfields, National Bank and some others did not allow investors to sit on the sidelines, although some of them are playing on both sides of the market.
Alternate bouts of buying and selling, therefore, figure prominently on selected counters but there is no evidence of outflow of large amounts from the capital market to other commodity markets, they said.
The Monday’s rise of the gold to Rs7,000 per ten grams is attributed to local buying as the marriage season has just begun rather than the outflow of money from the stock market.
Analysts said conflicting reports about the MMA-government understanding on the LFO do worry investors as they fear a “massive market retreat if the proposed deal was not signed.”
However, near-term outlook appears to be bullish as investors will continue to make fresh buying amid market talk of higher dividend by some of the leading companies due during the next couple of weeks.
They said textile and sugar sectors have closed their financial years on Sept 30, and indications are that leading among them will come out with enhanced dividend on the strength of higher earnings.
“If all goes well on the political front, the market is expected to stay bullish until the close of the current year,” they said.
Energy shares, notably Pakistan Oilfields, PSO, Pakistan Refinery, followed by leading shares on other counters including National Bank, PTCL, ICI Pakistan and Bosicor Pakistan were leading among the advancing issues.standing gainer on higher reports of higher final dividend plus bonus shares of 15 per cent. It has already paid an interim dividend of 100 per cent. Its share value rose by Rs29.35 at Rs420.75, a massive capital gain on a 10-rupee share.
Other notable gainers were led by Javed Omer, which maintained its sustained upward drive after higher dividend and has risen by Rs200. It was quoted higher by Rs51.05 followed by Tri-Pack Films, Packages, Rafhan Maize, Nestle MilkPak and Pakistan Refinery, up Rs6.05 to Rs18.35.
Losers were led by Mitchell’s Fruits, Aventis Pharma, Atlas Honda, Atlas Battery, Attock Refinery, Cherat Papers, Pak-Suzuki Motors and Wyeth Pakistan, off Rs4 to Rs15. There were several other prominent losers also.
However, owing to late selling losers managed to force a fair lead over the gainers at 202 to 174, with 53 shares holding on to the last levels.
The most active list was topped by PTCL, up 70 paisa at Rs39.20 on 100m shares followed by Pakistan Oilfields, sharply higher by Rs29.35 on 59m shares, Hub-Power, easy 10 paisa at Rs42.90 on 53m shares, National Bank, higher by Rs3.15 at Rs45.65 on 48m shares, Bosicor Pakistan, up Rs3.15 at Rs45.15 on 30m shares.
Other actives were led by PSO, higher by Rs4.95 on 29m shares, Japan Power, steady 10 paisa on 25m shares, ICI Pakistan, higher by Rs2.80 on 21m shares, D.G. Khan Cement, firm by 45 paisa on 20m shares and Lucky Cement, lower 25 paisa on 14m shares.
FORWARD COUNTER: PTCL also came in for strong support on the cleared list and rose by 80 paisa at Rs39.40 on 10m shares followed by Hub-Power, off 25 paisa at Rs42.95 also on 10m shares, PSO, sharply higher by Rs4.70 at Rs296.75 on 7m shares, ICI Pakistan, higher by Rs2.60 at Rs88 on 2m shares and Pak PTA, off 25 paisa at Rs14.60 on 1m shares.
DEFAULTER COMPANIES: Mixed trend was seen on this counter amid narrow price movements. Schon Modaraba was marked down by five paisa at Rs2.50 on 0.276m shares followed by Asim Textiles, up 65 paisa at Rs2.25 on 0.162m shares and Suzuki Motorcycles, off one rupee at Rs17.25 on 0.139m shares. Others were modestly traded.
BOARD MEETINGS: Kohinoor Energy, on Sept 12, National Bank, Sigma Leasing, on Sept 13, Baluchistan Wheels, Grindlays Modaraba, Cherat Cement, J.A.Textiles, Natover Lease, on Sept 15, Orix Investment Bank, Allwin Engineering, on Sept 18, Artistic Denim, on Sept 23, Askari Leasing on Sept 25, Ghani Glass, on Sept 29.