KARACHI, Oct 10: The KSE 100-share index on Friday staged a modest recovery from the recent lows followed by active short-covering in the leading base shares but the broader market remained under pressure owing to weekend selling by the retailers.
The opening was, however, not that promising as it breached through the psychological barrier of 4,000 points after giving highly erratic movements amid alternate bouts of buying and selling.
However, it ended partially recovered, up 12.70 point at 4,143.34 as compared to 4,130.64 a day earlier, reflecting the relative strength of the leading base shares, including Hub-Power, PTCL and PSO.
But the steady close at the weekend session always considered a good omen for the market as it signals the advent of bull support at the lower levels both on technical and long-term investment grounds.
Heavy buying in the PSO on some “leaks” about the final bidding date seems to be the major stimulating factor behind the index recovery. It staged a smart recovery both in the ready and forward counters amid active short-covering.
However, investors appear to be very choosy and did not go beyond the safe havens and the falling volumes could well mean anything to the future stock trading, brokers said.
Analysts said although covering purchases were far below normal because of weekend considerations, leading investors were back in the market and are expected to manifest their presence possibly by the next week.
“Most of them have a fair evaluation of rates of return on other modes of investment including government bonds and seem to have come to the logical conclusion that the shares are still best short-term investment.”
What seems to have made the share business more attractive for any future investment are the lower levels most of them reached owing to last three weeks sell-off, they said.
But some others fear that steep increase in cotton prices will not hit the textile sector alone, it has a chain of negative impact on all other counters after its weakness spills over to other counters.
Most of the leading textile shares showed distinct weakness, while some of the leading energy, chemical, auto and insurance shares managed to finish modestly higher amid light trading.
PSO was leading among the gainers, up Rs7.50 followed by 2nd ICP, EFU Life, Yousuf Textiles, Pakistan Electronic after the announcement of bonus shares in the ratio of 25:100, Ferozsons Lab, Reckitt & Benckiser and Atlas Battery, which posted gains ranging from Rs2 to Rs3.40.
Losers were led by Wyeth Pakistan and Javed Omer, off Rs20 to Rs22.85 followed by Pakistan Oilfields, Atlas Honda, Glaxo-SKF, Ghani Glass, Dawood Hercules and Pakistan Refinery, which suffered fall to the extent of Rs3 to Rs6.85.
Trading volume fell further to 207m shares from the previous 240m shares as losers maintained a fair lead over the gainers at 174 to 85, with 32 shares remaining unchanged at the overnight levels.
The most active list was topped by the PSO, higher by Rs7.50 at Rs296 on 32m shares followed by Dewan Salman, up Rs1.50 at Rs18.80 on 23m shares, Hub-Power, firm by 40 paisa at Rs37 on 22m shares, PTCL, higher by 40 paisa at Rs37.85 on 20m shares and Lucky Cement, easy 20 paisa at Rs22.25 on 11m shares.
Other actives were led by Pak PTA, higher by 40 paisa on 11m shares, Maple Leaf Cement, up Rs1.65 on 10m shares, Fauji Cement, steady by 10 paisa on 9m shares, Sui Northern Gas, lower 20 paisa on 8m shares and MCB, higher by Rs1.70 on 6m shares.
FORWARD COUNTER: PSO came in for active support and recovered in part a good portion of previous losses, up Rs8.50 at Rs196.85 on 15m shares followed by hub-Power, higher by 15 paisa at Rs37.05 on 5m shares, PTCL, firm 54 paisa at Rs37.99, Dewan Salman, higher by Rs1.50 at Rs19 on 3m shares and Pak PTA, up 35 paisa at Rs13.15 on 2m shares.
DEFAULTER COMPANIES: Activity on this counter remained slow in the absence of strong demand from any quarter. Prices showed fractional changes and there was no notable deals in any of the shares including the current actives.
DIVIDEND: Pak Elektron, bonus shares in the ratio of 25 shares for every 100 shares held, Capital Securities Corporation, bonus shares at the rate of 15 per cent, WorldCall Communications, WorldCall Multimedia, Kohinoor Power, Diamond Industries, Gammon Pakistan, Prudential Discount House, Trust Modaraba and Biafo Industries, all nil for the year ended June 30, 2003.
BOARD MEETINGS: Ali Asghar Textiles, on Oct 11, Maple Leaf Cement, Thal Jute, on Oct 16, PICIC Commercial Bank, Pakistan Tobacco on Oct 17, National Refinery, Al-Ghazi Tractors on Oct 20 and Meezan Bank on Oct 23.