KARACHI, Aug 21: Stocks on Thursday showed highly erratic price movements as investors played on both sides of the fence under the cross-current of alternate bouts of buying and selling but bulls finally managed to keep their firm hold on the on-balance steady trend.
No one could dispute the fact that the market is in an overbought position owing to last two week’s persistent run-up and needs correction, consolidation forces thinks otherwise and hence the continuation of the bull run though with clipped gains.
The KSE 100-share, however, showed highly erratic movements touching the day’s peak at 4,453.00 and, up 65 points but the later selling pushed it down by 62 points, the close being modestly higher at 4,395.87, showing a net rise of 7.30 points.
Although the market needs a bigger correction, which in turn could add to its inherent strength, bulls seem to be in no mood to leave the arena before hitting the next crucial index level of 4,500 points.
Moreover, corporate announcements from some of the leading companies are overdue and investors may not like to sit on the sidelines missing an attractive bait of capital gains.
Final dividend at the rate of 85 per cent plus bonus shares of 20 per cent by Lakson Tobacco for the year ended June 30, 2003, is in line with the market perceptions as was reflected by a fresh sharp rise of Rs10.80 in its share.
Board meetings of leading banks including Bank Al-Habib, Metropolitan Bank, KASB Bank, Parke-Davis and ICI Pakistan are due during the last week of the current month and investors are hoping for a good return on their investment.
Fears that massive business of Rs21.700 billion on the carryover market signals that the market is sitting on the volcano and if retailers and weakholders opt for settlement of outstanding dues there could be a sudden reversal, analysts said.
The mid-session selling in part was attributed to this perception but institutional traders came to the market’s rescue after lifting bulk of the floating stocks, putting it back on the rails.
“The unresolved issue of LFO and Opposition’s boycott of the National Assembly session do worry investors as it could lead to a decisive showdown between the contenders of power in the coming weeks”, brokers fears.
The government is inclined to go for a solo flight to show its relative strength but that will not lead to the settlement of political issues now confronting to the ruling elite, they said.
All the leading shares came in for active profit-selling and ended lower under the lead of PSO, PTCL, Hub-Power and Sui Northern Gas Co and so did some of the second-liners on other counters.
Plus signs again dominated the list, with leading shares finishing with fresh sharp gains Glaxo-SKF, IGI Insurance, Grays of Cambridge and Unilever Pakistan, which posted gains ranging from Rs12 to Rs44.95 followed by Bhanero Textiles, Island Textiles, Dawood Hercules, and Parke-Davis, up by Rs10 to Rs10.50. There were several other good gainers also.
Major losers were led by Atlas Battery, Millat Tractors, Pakistan Resource Co, Pakistan Refinery and Packages, off Rs4 to Rs6.95. Sapphire Textiles, PSO and Abbott Lab fell by Rs3 to Rs3.55.
Trading volume fell to 630m shares from the previous 702m shares a day earlier as the advancing shares maintained a fair lead over the losing ones at 200 to 166, with 53 shares holding on to the last levels.
The most active list was topped by Hub-Power, off 60 paisa at Rs44.35 on 90m shares followed by PTCL, easy 35 paisa at Rs37.55 on 61m shares, PSO, off Rs3.55 at Rs293.45 on 37m shares and D.G.Khan Cement, up by 30 paisa at Rs41.40 on 33m shares.
Other actives were led by Dewan Salman, higher by Rs1.45 on 44m shares, KESC, unchanged on 33m shares, Fauji Cement, lower 45 paisa on 25m shares, Nishat Mills, off also by 45 paisa on 24m shares, Lucky Cement, up by 50 paisa on 24m shares and National Bank, firm by 10 paisa on 23m shares.
FORWARD COUNTER: Forward counter on the other hand showed mixed trend where prices of leading shares suffered decline on active selling. PSO was leading among them, off Rs3.50 at Rs294 on 11m shares followed by Hub-Power, easy 60 paisa at Rs44.55 on 12m shares.
Dewan Salman was the only exception, which rose by Rs1.65 at Rs25.45 on 6m shares, while Nishat Mills, fell by 85 paisa at Rs42.50 on 3m shares.
BOARD MEETINGS: HinoPak Motors, on Aug 25, Service Industries on Aug 26, Pakistan International Airlines on Aug 27 and 28, Al-Abid Silk, on Aug 27, Commercial Union Life Assurance on Aug 28 and Pakistan Telecommunication Co on Sept 24.