Bearish spell continues on stock market
After having touched the day’s lowest at 7,248.73, the KSE 100-share index managed to finish partially recovered at 7,301.57 as compared to 7,305.30 a day earlier, showing a fractional fall of 3.73 points. Active short-covering in PTCL, OGDC and some other leading base shares allowed it to recoup initial losses, although the future outlook is largely linked with the restoration of badla mode of financing.
There is a loud whispering in the market that the needed liquidity will be raised for stock trading by the existing badla system, of course, with some modifications in it, one broker predicted.
“Investors have to wait for some more days as the Shaukat Train committee on market liquidity requirements is directed to go deeper into the alleged financial crisis and come out with an exact figure,” analysts said. However, the general tilt of the four committees set up to probe into the current crisis appears to have opted for the continuation of the traditional badla financing, they said.
The committee, which has submitted its report to the government, was also asked to study financing mechanism in the operational world stock markets, including the big question “who will be the lender in case the liquidity is squeezed out owing to risk factors?” they said.
Trading volume rose from the overnight lower level of 69m shares to 98m shares, but losers held a strong lead over gainers at 169 to 92, with 49 shares holding on to the last levels.
The most active list was topped by PTCL, up 20 paisa at Rs61.60 on 33m shares, followed by OGDC, higher by 70 paisa at Rs103.35 on 11m shares, National Bank, easy 30 paisa at Rs106.60 on 7m shares, Pakistan Petroleum, off Rs3.25 at Rs177.25 on 7m shares, PSO, lower Rs1.20 at Rs381.80 on 3m shares and Bank Alfalah, off Rs1.30 at Rs45.95 on 2m shares.
Other actives included Fauji Cement, steady five paisa on 4m shares, Fauji Fertilizer Bin Qasim, lower 25 paisa on 3m shares, DG Khan Cement, firm by 15 paisa on 2m shares and Abamco Capital Fund, up 20 paisa also on 2m shares.
FORWARD COUNTER: PTCL also came in for active support on this counter and rose by 15 paisa at Rs61.55 on 19m shares but its August contract fell by 10 paisa at Rs62.40 on 13m shares, followed by Pakistan Petroleum, off Rs3.70 at Rs176.95 on 13m shares, and OGDC, up 79 paisa at Rs103.65 on 8m shares, its August settlement rose by Rs1.15 at Rs105.15.
Turnover figure rose to 87m shares from the previous 42m shares owing to squaring of positions in the matured July contracts, which will be rung off the board on July 29.
DEFAULTER COS: With the exception of Crescent Standard Bank, which came in for active short-covering but finished unchanged at Rs16.50 on 0.142m shares, other actives fell modestly under the lead of Trust Brokerage, Dewan Autos, and Chenab Textiles, off one rupee to Rs1.20.
DIVIDEND: Unilever Pakistan, cash interim Rs60 per share of Rs50; Clariant Pakistan, interim cash at the rate of Rs6.50 per share or 65 per cent; Century Papers, cash final 45 per cent or Rs4.50 per share of Rs10; and Al-Meezan Mutual Fund, final 7.5 per cent.