But brokers said that current run-up was not overdone as profit-selling was being steadily absorbed both on the rise and fall, reflecting that highly inflated levels on the blue chip counters could not deter them to keep to the sidelines. Most of the overvalued shares in auto, fertilizer and chemical sectors came in for heavy battering at the highly inflated levels.
The KSE 100-share index, however, turned in a highly volatile performance as bulls and bears fought to tilt the price balance in their respective favour but it was a no-win situation till the closing bell.
An idea of terrible price movements was well-reflected in an erratic movement of about 200 points, the lowest and the highest being hit at 10,436.66 and 10,616.54 respectively before the final closing at 10,496.95, off 27.21 points from the previous close of 10,524.16.
While leading bank and cement shares remained under bull squeeze followed by a fresh price flare-up on strong dividend-related support, the relative weakness of the oil sector and leading fertilizer companies despite higher dividend worked against the underlying sentiment. Incidentally, oil shares, notably OGDC and Pakistan Petroleum being among the index heavy weights again remained under pressure.
The initial flare-up to an all-time high level of 10,617.00 was attributed to some positive developments on the CFS amid rumours that its ceiling may be increased from the Rs25 billion, analysts said, adding “a reported broad agreement between the SECP and the stock exchanges on the demutualization of bourses was another positive factor behind the early run-up.”
Market sources said a sharp increase in the daily trading volume reflected more funds beyond the current ceiling of Rs25 billion to sustain the current run-up and the issue appeared to be on the top agenda of the SECP.
Analysts said that despite a lot of clamour by the bears about a big shakeout bulls were not inclined to leave the arena despite the market’s overbought position on the perception that the end to the current bull-run was still far away.
“Technical corrections here and there notwithstanding, the market has more than one reason to look up even at the current massively higher levels in most of the blue chips as no one is inclined to miss an attractive bait of capital gains as well as higher dividend and bonus shares”, they added.
The broader market again remained under slight pressure but leading shares managed to finish with fresh sharp gains under the lead of Grays of Cambridge and Clariant Pakistan, up by Rs11.80 and Rs13. Other prominent gainers included Fazal Textiles, Engro Chemical Pakistan, MCB, Central Insurance, Gatron Pakistan, International Industries, Noon Pakistan and Shezan International, which posted gains ranging from Rs5.60 to Rs11.05.
Trading volume was maintained on the higher side at 643m shares as compared to 655m shares a day earlier but losers held a strong lead over the gainers at 248 to 141, with 37 shares holding on to the last levels.
The most active list was topped by Bank of Punjab, lower 80 paisa at Rs124 on 75m shares, National Bank, higher by Rs1.55 at Rs256.45, PTCL, firm by 65 paisa at Rs66 on 42m shares, Fauji Fertilizer Bin Qasim, unchanged at Rs41.65 on 41m shares and MCB, higher by Rs7.25 at Rs217 on 29m shares.
Other actives were led by OGDC, easy 30 paisa at Rs125.80 on 20m shares, Nishat Mills, up by Rs1.10 on 20m shares and Dewan Salman, lower Re1 on 17m shares.
FORWARD COUNTER: D.G.Khan Cement also topped the list of actives on this counter, higher by Rs4.35 at Rs133 on 31m shares, followed by National Bank, up by Rs1.50 at Rs259.50 on 20m shares and Bank of Punjab, lower 55 paisa at Rs125.75 on 16m shares.
They were followed by MCB, higher by Rs6.25 at Rs218.35 on 13m shares, Lucky Cement, easy 10 paisa at Rs101 on 10m shares and PSO, off Rs3.80 on light volume. Engro Chemical on the other hand recovered overnight fall and was quoted higher by Rs6.90 on post-dividend buying.
DEFAULTER COS: With the exception of Dandot Cement, which rose by 15 paisa at Rs11 on 0.172m shares all others were fractionally traded in the absence of strong support owing to the weakness of the ready counter.
DIVIDEND: Unilever Pakistan, cash final 120 per cent, Engro Chemical Pakistan, cash final 50 per cent, interim 60 per cent already paid, right shares at the rate of Rs10, Dawood Hercules, cash final 25 per cent, bonus shares 15 percent and Fauji Fertilizer cash final 22.5 per cent.