The passing over of the final dividend by PTCL appears to be the chief destabilizing factor as investors could not digest the idea of zero final dividend by a telecom giant.
The KSE 100-share index experienced highly erratic movements of over 100 points, hitting the low at 8,128.26 and the high at 8,233.64, but late covering purchases in some of the pivotals allowed it to finish with a marginal gain of 1.5 points at 8,196.33 as compared to 8,195.28 a day earlier.
Although PTCL resisted fresh sharp fall and managed to recover from the early low of Rs62.50 to Rs63.10, but still ended in the deficit of 90 paisa, adding to Tuesday loss of Rs2.5. It has already paid an interim dividend of 20 per cent, which has become final.
There was, therefore, a brief technical pause in trading as leading analysts and brokers tried to find out reasons behind the surprise move of the PTCL directors at a time when its new management is close to takeover its control after paying out the final bid money, dealers said.
“There is a loud whispering in the market that passing over of the final dividend may have the approval of the incumbent,” they said. “But why the stakeholders in it are denied a genuine return on their investment both in terms of capital appreciation and dividend is a big question they ask.”
“The market reaction to the omission was not that terrible, but indications are that it may pass through further price erosions in the sessions to come, as weak-holders will try to get out of it,” predicts a leading analyst.
Analysts said the strength of other leading base shares, notably OGDC and some oil shares in anticipation of further rise in petroleum prices enabled the broader market to rise from the early lows on active short-covering.
Plus signs, therefore, maintained a comfortable lead over the minus ones under the lead of Millat Tractors, which maintained its post-dividend upward drive, and Packages, up Rs9.10 and Rs7.75, respectively. Other prominent gainers included Imrooz Modaraba, Fazal Textiles, Lakson Tobacco, Cherat Cement, National Refinery, HonoPak, Honda Atlas, Suzuki Motors, Sitara Chemical, Nestle MilkPak, Zulfiquar Industries, up Rs3 to Rs4.75.
Bhanero Textiles and Grays of Cambridge were leading among the losers, off Rs13.45 and Rs13.95, respectively, followed by Yousuf Textiles, National Bank, MCB, Gatron Industries, Attock Refinery, Atlas Honda, and Dawood Hercules, off Rs2.30 to Rs5.50.
Trading volume fell to 306m shares from the previous 350m shares but gainers held a comfortable lead over losers at 179 to 168, with 41 shares holding on to the last levels.
DG Khan Cement was actively traded ahead of its board meeting and was marked up further higher by Rs1.20 at Rs75.65 on 46m shares, Fauji Fertilizer Bin Qasim, off 60 paisa at Rs36.95 on 36m shares, OGDC, higher by Rs1.50 at Rs114.10 on 31m shares, PTCL, lower 90 paisa at Rs63.10 on 27m shares, National Bank, off Rs2.75 at Rs139.50 on 21m shares, MCB, lower Rs2.30 at Rs123.30 on 10m shares, and Bank of Punjab, up 50 paisa at Rs114.55 on 13m shares.
Other actives were led by Pakistan Petroleum, higher by 90 paisa on 20m shares, Nishat Mills, firm by 55 paisa on 13m shares, and Sui Northern Gas, off Rs1.25 on 8m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives on this counter, up 60 paisa at Rs196.50 on 9m shares, followed by PTCL, easy Rs1.65 also on 9m shares and DG Khan Cement, up 80 paisa at Rs75.60 on 7m shares. Others showed marginal changes ahead of their maturity on Sept 30.
DEFAULTER COS: Price changes on this counter was on the higher side under the lead of Taxila Engineering, Morafco Industries and Ghndhara Industries, up one rupee to Rs1.50, while Mehr Dastgiar fell by one rupee without any deal.
DIVIDEND: Askari Leasing, bonus shares at the rate of 15 per cent.