KARACHI, Dec 8: Stocks on Monday turned in a credible performance on strong buying aided by rumours about the fixing of final bidding date for the sell-off of controlling shares of PSO to one of the strategic short-listed bidders early next year.
The market sentiment was also influenced positively by official signals about the possible settlement of the LFO issue within the current month. But leading investors were in two minds about the possible settlement of the issue as for the last several months positive news were aired but without any tangible result.
After having steadily risen to Rs56.20, being its career-best level so far, OGDC came in for active profit-selling at the higher levels and fell to finish lower by Rs2.40 at Rs50.40. Amid highly erratic price movements, it turned out a massive volume of 199m shares, surpassing its previous record of 182m shares touched last week.
The KSE 100-share index recovered 45.98 points and was last quoted around 4,245.76 after earlier hitting the day’s peak level of 4,265 as compared to the weekend’s 4,199.98 points.
The market seemed to have received a major boost from strong rumours, leaking apparently from the official sources about the final bidding date for the sell-off of controlling shares of Pakistan State Oil to one of the three short-listed bidders possibly on January 6.
“What gave credence to the rumours was the fixing of reserve price at $8.4 or Rs481 per share of Rs10,” analysts said. “PSO 10-rupee share has been fluctuating between Rs260 and Rs300 for the last several months in anticipation of long-awaited final bidding date.”
The government has already given a Rs8 billion mark-up waiver to PSO on loans it owes to oil refineries and picked up receivable worth Rs7.5 billion, which Wapda and KESC owe to it, one of the major irritants and demands of the short-listed bidders.
“The final bidding may not be fixed on Jan 6, or bit late but it is now pretty clear that the Privatization Commission has cleared the way for a smooth transaction of massive deal possibly during the first month of the new year,” they said.
Floor brokers said some of the leading investors although appear to be skeptical about the widely-speculated settlement of the LFO issue made fresh covering purchases on selected counters.
The perception that the current run-up could get an added impetus during coming sessions after a massive amount of Rs22 billion tied to the issue of OGDCL again finds its way into the share business kept investor in an upbeat mood, they added.
After having touched the peak level of Rs52, OGDCL share came in for profit-selling at the higher level by a section of investors and finished reacted.
All the leading shares attracted good support and finished higher under the lead of energy, chemical, and auto shares. Leading among them being Century Papers, Nestle MilkPak, Noon Sugar, Shell Pakistan, Millat Tractors, Glaxo-SKF, Abbott Lab, Javed Omer, Pakistan Oilfields and Bhanero Textiles, which posted gains ranging from Rs3 to Rs11.
Losers were led by Parke-Davis and Wyeth Pakistan, off Rs10 and Rs30, respectively, followed by Fazal Textiles, Clover Pakistan, Sitara Chemicals, Rafhan Maize and Lakson Tobacco, which suffered fall ranging from Rs3 to Rs6.
Trading volume rose to 300m shares from the previous 227m shares as gainers forced a strong lead over the losers at 184 to 131, with 45 shares holding on to the last levels.
FF Bin Qasim topped the list of most actives, up 65 paisa at Rs20.85 on 56m shares, followed by Pakistan Oilfields sharply higher by Rs9.50 at Rs219 on 32m shares, D.G.Khan Cement, up Rs1.05 at Rs44.25 on 28m shares, PTCL, unchanged at Rs35.75 also 28m shares and PIAC, higher by Rs1.15 at Rs202.20 on 18m shares.
Other actives were led by National Bank, up 60 paisa on 18m shares, PSO, higher by Rs2.35 also on 18m shares, Maple Leaf Cement, up one rupee on 16m shares, Dewan Motors, higher by Rs2.05 on 13m shares and Hub-Power, firm by 15 paisa on 11m shares.
FORWARD COUNTER: OGDCL came in for active selling and finished lower by Rs2.40 at Rs50.40 on 199m shares followed by PSO, higher by 75 paisa at Rs280 on 6m shares, FF Bin Qasim, up 70 paisa at Rs21.10 also on 6m shares, PTCL, firm by 20 paisa at Rs36.10 on 3m shares and MCB, higher by Rs2.10 at Rs50.50 also on 3m shares.
DEFAULTER COMPANIES: Active trading was witnessed on the this counter as a section of investors covered positions at the lower levels. National Modaraba and Biafo Industries proved most active among them, up 10 and 25 paisa at Rs1.25 and Rs7.25 on 0.127 and 0.211m shares, respectively.