The market’s weekend performance reflects that the index level of 12,000 points is not that ambitious on the back of positive corporate background news and an attractive bait of privatization of state-owned units during the current year.
Finally, it ended the weekend session at 10,227.87 as compared to 10,259.86, off 31.99 points, reflecting the weakness of leading base shares. The previous high at 10,303.00 was established on March 15, 2005.
Stocks, therefore, suffered modest pruning at the higher levels as jobbers and short-term dealers unloaded in part their long positions at the higher levels owing largely to weekend considerations.
There were, however, no signs that the current run-up is overdone as presence of active short-covering at the dips reflects that the market will resume its upward drive to its next target of 12,000 index level.
“Interim reports of some of the leading companies are due during the next week and there is a market talk of dividend and bonus shares at the higher levels as compared to previous”, floor brokers said.
But some others said that share values of some of the leading banks and cement shares had appreciated beyond speculative limits and needed correction in the shape of profit-selling and that had crept in a big way.
However, it is a healthy sign, which significantly adds to the market’s inherent strength in more than one ways including short-covering. The talk of a massive reaction, therefore, is out of question for the near-term, they said.
“In a buoyant market investors have a fair choice to swim from one counter to the other, without taking away their money to other investment options”, analysts said, adding “the outflow of funds by way of profit-selling in the bank and cement sectors finds its way into others notably auto, fertilizer and telecom shares”.
Arif Habib Securities and Unilever Pakistan rose further by Rs22.60 and Rs40, followed by HinoPak Motors, Atlas Honda, Dawood Hercules, Pak-Suzuki Motors, Sanofi Aventis, Gillette Pakistan and IGI Insurance, which posted gains ranging from Rs9.40 to Rs14.90.
Losses on the other hand were mostly fractional barring Nestle Pakistan and Siemens Pakistan fell by Rs25 to Rs32 on active selling at the overnight rise. Other prominent among them were Javed Omer, National Refinery, Pakistan Petroleum, Pakistan Oilfields, Colgate Pakistan, Artistic Denim, Shaheen Insurance, Colgate Pakistan and Rafhan Maize, off Rs4.60 to Rs19.95.
Trading volume further fell to 425m shares from the previous 500m shares as gainers maintained a modest lead over the losers at 190 to 154, with 40 shares holding on to the last levels.
The most active list was topped by the low-priced Maple Leaf Cement, up by Rs2.10 at Rs44.80 on 38m shares followed by National Bank, higher by Rs2.10 at Rs231.40 on 32m shares, Nishat Mills, firm by 95 paisa at Rs126.10 on 27m shares, KESC, up by 65 paisa at Rs9.65 on 22m shares, Fauji Cement, off 65 paisa at Rs24.65 on 20m shares, PTCL, lower 70 paisa at Rs66.20 on 19m shares and MCB, off Rs4.95 at Rs190.95 on 13m shares.
Other actives included TRG Pakistan, up by 95 paisa on 16m shares, Telecard, higher by Re1 on 15m shares and D.G.Khan Cement, off Rs3.55 on 13m shares.
FORWARD COUNTER: Maple Leaf Cement also led the list of actives on the cleared list, up by Rs2 at Rs45 on 15m shares followed by National Bank, higher by Rs1.75 at Rs231.65 on 12m shares and Nishat Mills, up by Rs1.15 at Rs126.25 on 11m shares.
Other actives were led by Telecard, up by Re1 at Rs18.05 on 10m shares, PICIC, higher by Rs3.20 at Rs72.75 on 7m shares and some other oil and fertilizer shares on modest turnover.
DEFAULTER COS: Indus Polyester and Dandot Cement again came in for active support and rose by 15 and 10 paisa at Rs5.65 and Rs11.50 respectively on 0.160m and 0.207m shares, while others were modestly traded amid two-way price movements.
DIVIDEND: First National Equities, cash 20 per cent for the year ended Dec 31, 2005.