A post-dividend profit-selling was observed in PSO despite a higher final cash dividend of 100 per cent, making the total for the last year, together with two interims of 50 and 110 per cent to 260 per cent. The selling apparently came from those who have been expecting bonus shares also.
The post-tax profit of PSO rose to 5.689bn from the previous Rs4.211bn, while earning per share at Rs33.17 as compared to the previous Rs24.58 ensured a handsome return to those investors who are in its fold, analysts said.
But conflicting reports about the proposed meeting and restoration of the badla financing facility again triggered selling in some of the leading base shares, notably PSO and Pakistan Petroleum, clipping the early gains, brokers said.
“I don’t think the government will soften its stand on the badla issue,” one analyst fears. “The issue has been overblown and reinforced by brokers’ tactical manoeuvring over the last three weeks apparently to force a positive decision.” But the market is expected to stage a strong rebound if the official decision is positive on the issue even on Friday, as the market’s highly oversold position could attract any amount of short-covering at the current lower levels.
It appears to be the Wednesday’s repeat performance, as the index recovered from early lows at the fag-end of the session on some positive reports about the current standoff. The market’s early buoyant mood was well reflected in the steep increase of 85 points at 7,300.09, which was incidentally the day’s best bid, but late selling again pushed it down to finish at 7,215.64, off 2.16 points as compared to Wednesday’s 7,217.80.
The sentiment in part was also influenced by higher dividend by some of the leading companies, including Faysal Bank, which came out with an interim cash of 15 per cent and bonus shares of an identical amount, and a 30 per cent interim by Engro Chemical, followed by Fauji Fertilizer.
Most of the price changes were fractional, barring Rafhan Bestfoods and Siemens Pakistan, which posted gains ranging from Rs15.20 to Rs29.55, followed by Shell Pakistan, United Sugar, National Refinery, Millat Tractors, Arif Habib Securities and Javed Omer, which posted gains ranging from Rs5.30 to Rs12.65.
PSO and Nestle MilkPak led the losers, off Rs6.35 and Rs28.35, respectively, on renewed selling. Other major losers included Indus Dyeing, Attock Refinery, Attock Petroleum, Gatron Industries, International Industries and PSO, off Rs3 to Rs6.35.
Trading volume rose to 89m shares from the previous 74m shares, but gainers and losers about evenly matched at 121 and 123, with 45 shares holding on to the last levels.
PTCL led the list of actives, steady five paisa at Rs60.65 on 11m shares, followed by Fauji Fertilizer, higher by Rs1.60 at Rs134.10 on 10m shares, OGDC, firm by 55 paisa at Rs102.65 on 8m shares, Crescent-Standard Bank, lower 40 paisa at Rs15.60 on 6m shares, Pakistan Petroleum, off Rs2.80 at Rs168.70 also on 6m shares, PSO, lower Rs6.35 at Rs371.90 also on 6m shares.
Other actives were led by Pakistan Oilfields, higher by Rs2.55 at Rs303 on 6m shares, National Bank, up 25 paisa at Rs105.75 on 4m shares, Fauji Fertilizer Bin Qasim, higher by 20 paisa at Rs28.90 on 4m shares and Fauji Cement, firm by 35 paisa on 3m shares.
FORWARD COUNTER: Pakistan Petroleum remained under pressure and posted a fresh fall of Rs3.10 at Rs168.80 on 8m shares, while its August settlement was marked down by Rs3.15 at Rs171.00 on 7m shares and PTCL, steady eight paisa at Rs60.58 on 5m shares, its August contract, rose by 15 paisa at Rs61.40 also on 5m shares.
PSO came in for post-dividend sell-off and fell by Rs5.90 at Rs372.80 on 4m shares, barring Engro Chemical and Fauji Fertilizer, which showed modest gains. Others also fell amid light trading.
DEFAULTER COS: Crescent-Standard Bank came in for active selling in sympathy with its ready rates, off 40 paisa at Rs15.60 on 0.638m shares, while others were modestly traded.