KARACHI, Dec 16: Stocks on Tuesday resisted fresh decline aided by active short-covering on the blue chips counters at the lower levels but leading sellers were conspicuous by their absence apparently anticipating further increase in the share values.
Trading volume was, therefore, light as speculative traders kept to the sidelines most of the time having an overview of the new exposure rules and their likely impact on the ready business.
Earlier, the KSE 100-share index was down by 45 points on active selling followed by reports that the Securities and Exchange Commission of Pakistan (SECP) has raised the limit of cash deposits from 15 per cent to 20 per cent on trading in the carryover market in an effort to avert any possible payment default.
Fears of margin calls under the new exposure limits on some of the brokers was another negative factor behind the early sell-off, dealers said.
However, an active short-covering late in the session in most of the pivotals allowed it to finish with a modest recovery of 9.10 points at 4,278.18 as compared to 4,269.08 a day earlier, reflecting the strength of the leading base shares.
Floor brokers said the market is expected to show an erratic price movements during the coming sessions partly because of the implementation of new rules in the carryover market and partly to developing political scenario.
“As the deadline (before Dec 18) of MMA to present the constitutional package in the Parliament is coming closer, chances of a showdown between the contenders of power are increasing,” they said. “Investors are worried on the perception that the government appears to be in no mood to oblige MMA.”
But leading analysts ruled out the possibility of a major shakeout at this stage as the market has already absorbed the shock of an attempt on the life of the President in bomb blast on Sunday.
The market is expected to play positively to the latest privatization process under the lead of Habib Bank, whose final bidding date has been fixed on Dec 29, to sell its controlling shares of 51 per cent to one of the bidders.
Oil shares led the late market recovery under the lead of the PSO followed by further increase in petroleum prices for the fortnight ended Dec 15. PTCL, Pakistan Oilfields, Hub-Power and Sui Southern Gas also attracted good support at the current levels.
Minus signs again dominated the list under the lead of Javed Omer, Ferozsons Lab, Atlas Honda and Nestle MilkPak, off Rs3 to Rs8.50 followed by Shell Pakistan, Merit Packaging, National Foods, Treet Corporation, Grays of Cambridge and BOC Pakistan, which suffered fall ranging from Rs2 to Rs2.70.
Leading gainers were led by EFU Life, PSO, Pak-Suzuki Motors, Packages, Blessed Textiles, Millat Tractors and Pakistan Refinery, which posted gains ranging from Rs2 to Rs7.80.
Trading volume fell to 190m shares from the previous 261m shares as losers held a fair lead over the gainers at 149 to 109, with 41 shares holding on to the last levels.
Hub-Power again led the list of most actives, firm by 10 paisa at Rs39.30 on 28m shares followed by D.G. Khan Cement, easy five paisa at Rs44.45 on 16m shares, PSO, higher by Rs2.40 at Rs277.50 on 15m shares, PTCL, unchanged at Rs35.45 also on 15m shares and Maple Leaf Cement, off 60 paisa at Rs30.75 on 14m shares.
Other actives included PIAC, easy 20 paisa at Rs20.80 on 13m shares, KESC, up 40 paisa on 12m shares, Pakistan Oilfields, higher by Rs1.80 also on 12m shares, Fauji Cement, unchanged on 10m shares and Dewan Motors, up 10 paisa on 9m shares.
FORWARD COUNTER: OGDC again led the list of actives, up 80 paisa at Rs54.95 120m shares followed by the PSO, sharply higher by Rs3.05 at 279.35 on 8m shares Hub-Power, firm by 20 paisa at Rs39.45 on 4m shares and PTCL, easy five paisa at Rs35.65 on 3m shares.
FF Bin Qasim was marked down by 30 paisa at Rs18.70 on 1.429m shares, while ICI Pakistan fell by Rs1.50 at Rs81.50 on modest turnover.
DEFAULTER COMPANIES: Barring Biafo Industries, which again came in for active support and rose by 25 paisa at Rs8.30 on 0.200m shares, all others were modestly traded in the absence of demand from any quarter.
DIVIDEND: Pakistan Services, interim bonus shares at the rate of 10 per cent, Indus Fruit Products, nil for the year ended June 30, 2003.
BOARD MEETINGS: Aruj Garments on Dec 18, Fauji Fertilizer, Javedan Cement and Din Textiles, on Dec 22.