KARACHI, Sept 11: Stocks on Thursday rose further but finished well below the day’s best levels as security concerns linked with the 9/11 incident did not allow investors to hold long positions followed by profit-selling.
The KSE 100-share index, which again rose well above the barrier of of 4,600 at 4,416, reacted to finish with a modest gain of 10.98 points at 4,591.79 on late heavy selling in PTCL, PSO and some other leading base shares.
Some analysts fear it has already touched its peak level and investors holding long positions may be planning a “big retreat” without taking financial risks.
They apparently base their assessment on its erratic movements and its inability to hold above the 4,600-point index level for the last couple of sessions, they said.
“The market may not have reached the saturation point as many think,” they said. “Upcoming board meetings of some leading companies during the next weeks could keep it in a good shape.”
Although there was no incident of violence in the city related to the 9/11 the local high alert worried investors, most of whom opted for taking profits rather than holding long positions.
The early run-up was attributed to higher corporate announcements, notably from National Refinery, which announced a handsome dividend of 75 per cent, EPS Rs20.29 on a 10-rupee share and the later sell-off to security concerns.
Reports that final bidding date for the disinvestment of controlling shares of PSO next month is expected to be announced in couple of days did also aid the market’s initial bullish opening.
“The PSO bidding date is like the LFO,” says a leading broker jokingly, adding “as for the last couple of months its date could not be fixed for various reasons so is protracted talks on the LFO without any positive outcome.”
Hub-Power, which has been under pressure for the last couple of days came in for strong support ahead of its board meeting, but on the other hand PTCL attracted selling at the higher levels and so did some other current favourites, notably PSO, Pakistan Oilfields and National Bank.
Auto shares again led to the market decline falling sharply on the government demand to lower selling prices, leading losers among them being Honda Atlas, Indus Motors, Millat Tractors and Pak-Suzuki Motors, off Rs3.70 to Rs7.55.
Other prominent losers were led by PSO, Al-Abid Silk, Nestle MilkPak, Abbott Lab and Central Insurance, which suffered fall ranging from Rs4.50 to Rs6.25.
Among the prominent gainers, Treet Corporation, Arif Habib Securities, Javed Omer and Wyeth Pakistan, up Rs19 to Rs55. The price flare-up was attributed to shortage of floating stock.
Other good gainers were led by Pakistan Services, Unilever Pakistan, Siemens Pakistan, Atlas Battery, Jahangir Siddiqui & Co, Shafiq Textiles and Island Textiles, which posted gains ranging from Rs5 to Rs11.50.
Trading volume rose to 663m shares from the previous 642m shares, but gainers maintained a firm lead over the losers at 213 to 163, with 51 shares holding on to the last levels.
Hub-Power led the list of actives, sharply higher by Rs1.05 at Rs43.90 on 125m shares, Fauji Cement, steady by five paisa at Rs13.40 on 59m shares, PTCL, easy 60 paisa at Rs39.60 on 51m shares, PIAC, higher Rs1.55 at Rs22.35 on 45m shares and ICI Pakistan, up by Rs3.20 at Rs92.35 on 42m shares.
Other actives included KESC, up 40 paisa on 34m shares, Lucky Cement, lower 35 paisa on 33m shares, National Bank, off 35 paisa on 32m shares, FFC-Jordan Fertilizer, up 35 paisa on 25m shares and Sui Northern Gas, higher 60 paisa on 24m shares.
FORWARD COUNTER: Hub-Power came in for strong speculative support at the lower level and rose by 85 paisa at Rs43.90 on 13m shares but on the other hand PTCL attracted profit-selling at the higher levels and fell by 65 paisa at Rs39.75 on 12m shares followed by PSO, sharply lower by Rs3.45 at Rs298.50 on 7m shares.
ICI Pakistan on the other hand maintained its upward drive and rose further by Rs3.40 at Rs93.15 on 5m shares and Sui Northern Gas, up 80 paisa at Rs46.15 on 3m shares.
DEFAULTER COMPANIES: Trading on this counter was relatively slow in the absence of leading investors. Financial Link Modaraba attracted modest support and rose by 30 paisa at Rs4.80 on 0.380m shares followed by Standard Bank, up 10 paisa at Rs8.10 on 0.189m shares and Islamic Bank, easy 85 paisa at Rs6.85 on 0.127 shares. Others were modestly traded.
DIVIDEND: National Refinery, cash 75 per cent; Trust Leasing Corporation, bonus shares at the rate of 15 per cent; Progressive Insurance, cash one per cent; and Prudential, Stocks Fund nil for the year ended June 30, 2003.
BOARD MEETINGS: Attock Refinery and Saleem Sugar Mills on Sept 16; Pakistan Venture Capital on Sept 19; and Pakistan Telecommunication Company on Sept 24.