KARACHI, Oct 19: Stocks were back on the track on Wednesday as pivotals came in for active short-covering at the overnight lows and pushed the index higher by 203.57 points and market capital by Rs43 billion.
The breach of the two consecutive barriers reflects that the Tuesday’s sell-off was “inspired” and more technical rather than the market’s real plunge caused by some negative corporate news.
It finally finished at 8,872.96 as compared to previous close of 8,669.39, up by 203.57 points or 2.35 per cent as all the leading shares recovered from the overnight lows on strong short-covering.
Leading base shares including OGDC, Pakistan Petroleum, PSO, Pakistan Oilfields, PTCL and some leading bank shares remained in active demand at the overnight lower levels and finished partially recovered.
“Owing to heavy weightage, of about 50 per cent held by OGDC, PTCL, Pakistan Oilfields, Pakistan Petroleum in the index, it is pretty easy for the big ones to push it down or higher just in one go as they did on Tuesday and today after circulating conflicting rumours”, analysts said.
Some of the leading bank shares, notably National Bank, MCB and Bank of Punjab, which came in for active selling and the KSE high-ups had to apply circuit breakers to check further decline in their share values yesterday, were normally traded on active support at the overnight dips.
“Thriving on some negative rumours, bears failed to extend the overnight sell-off as they failed to sell some new ones”, analysts said “the market trend is based on hard news and that is perhaps why rumours failed to get the needed bearish push”.
After having driven out the bears, bulls were again in command of the situation and put the market back on the rails in the backdrop of positive background news on the corporate front in the form of quarterly earning results of most of the leading companies, sans Faysal Bank whose interim profits are said to be below market predictions.
“The human misery in the backdrop of the October 8 earthquake appears to be a double-edged weapon”, says a leading broker “to some it entails a massive economic loss and to some is boon in the form of higher consumption and industrial production”.
However, the current market trend is largely being fed by the strength of higher corporate earnings and hopes of handsome dividend, although speculative forces were also active on some of the counters.
Bank and energy shares, which received a massive battering overnight, led the market recovery followed by cement and some other sectors on active buying at the lower levels.
Among the leading gainers, Pakistan Refinery and Pakistan Oilfields were prominent, up by Rs12 to Rs12.75, followed by Ghandhara Nissan, Engro Chemical, PSO and Attock Petroleum, higher by Rs7.25 to Rs11.10. Other good gainers were led by MCB, United Bank, Bank of Punjab, United Sugar, D.G. Khan Cement, Mustehkam Cement, Sitara Chemical, Clariant Pakistan, Nestle Pakistan, Shezan International, up by Rs4 to Rs8.35.
Siemens Pakistan and Wyeth Pakistan were notably among the losers, off Rs12 and Rs20 respectively followed by Gatron Industries, Lakson Tobacco, Pakistan Tobacco, Attock Refinery and Millat Tractors, which posted losses ranging from Rs5 to Rs10.95.
Trading volume fell to 302m shares from the previous 318m shares but gainers forced a strong lead over the losers at 169 to 118, with 39 shares holding on to the last levels.
PTCL came in for strong foreign buying and was quoted higher by Rs3.05 at Rs67.70 on 62m shares, followed by National Bank, up by Rs2.20 at Rs161.80 on 31m shares, OGDC, higher by Rs3.65 at Rs120.65 on 26m shares, Bank of Punjab, firm by Rs5.55 at Rs116.55 on 19m shares, Pakistan Petroleum, up by Rs12.75 at Rs427.75 on 12m shares and Pakistan Petroleum, up by Rs4.75 at Rs210.25 also on 12m shares.
Other actives were led by Fauji Cement, up by Re1 on 16m shares, Fauji Fertilizer Bin Qasim, higher by Rs1.10 on 10m shares and Lucky Cement, up by Rs3.20 also on 10m shares.
FORWARD COUNTER: PTCL also led the list of actives on the forward counter, up by Rs2.70 at Rs68.10 on 19m shares followed by Bank of Punjab, higher by Rs5.85 at Rs118.85 on 15m shares and D.G. Khan Cement, up by Rs4.35 on 15m shares.
OGDC was also actively traded, higher by Rs2.80 at Rs121.50 on 12m shares, National Bank, up by Rs1.55 at Rs163.15 on 12m shares followed by Pakistan Oilfields, Pakistan Petroleum, PSO and some fertilizer and other shares were also traded on the higher side.
DEFAULTER COS: Ghandhara Industries and Morafco Industries came in for modest support and rose by Rs1.25 to Rs1.95 at Rs50 and Rs41.25 on 7,000 and 1,500 shares respectively.
Among the volume leaders, Unity Modaraba was leading, up by 15 paisa at Re1 on 0.170m shares, while others were fractionally traded.