KARACHI, June 28: Stocks on Wednesday were back on the rails on active short-covering triggered by warning by the SECP to share price manipulators and speculative forces to refrain from negative activities or face action under the relevant law. Both the KSE index and the market capital recovered 392.53 points at 9,434.15 and Rs.109.221 billion at Rs2,654.172 billion, respectively.
Perception that strict monitoring of the proceedings on the bourses may have already started, bears played safe allowing the consolidation forces to take control of the trading arena, analysts said.
“Certain members either jointly or separately are artificially depressing share values since April 3, and purchasing them at the lower prices or purchasing to push their price higher and square positions at the end of the session in manipulation and an offence punishable under the SECP Ordnance 1969”, the SECP warning said.
Though a bit late as the market has declined by about 1,000 points or 10 per cent during the three sessions preceding the warning, reminding manipulators’ action under the Ordnance 1969, lured bulls back in the arena. Earlier, bears failed to push the index below the resistance level of 9,000 points.
The KSE 100-share index recovered 392.63 points at 9,434.15 as compared to 9,041.62 as all the leading shares virtually raced toward their pre-reaction level under the lead of OGDC, National Bank, Pakistan Oilfields, Pakistan Petroleum, PTCL and MCB closing around their upper circuit breakers. It touched the session’s lowest and highest at 9,004.50 and 9,434.45, respectively.
“It may be modest but I don’t rule out the possibility of advent of foreign fund buying in some of the oil and bank shares,” says a leading stock analyst Ashraf Zakria “many may not like to miss the OGDC below Rs120 or Pakistan Petroleum and National Bank at Rs180.”
Bears seem to have exhausted most of the negative rumours to push the KSE index below the resistance level of 9,000 points but failed as regulatory authorities are now more vigilant to monitor the speculative tendency beyond certain limits, he added.
“Unlike the previous years, the current fiscal is fading out without any significant event on the upside during the closing stages,” another analyst Hasnain Asghar Ali said,” adding “Supreme Court verdict on the Pakistan Steel sell-off proved a temporary destabilising factor but it provide a solid ground for the consolidation forces.”
Bulls have at last won the battle and it is expected to prove at launching pad for the market to explore new peak levels during the new fiscal based on both the market’s technical demand and new portfolio building at the current lower levels.
Arif Habib Securities, Unilever Pakistan, National Bank, MCB, up by Rs10 to 30. They were followed by IGI, National Refinery, PSO, Shell Pakistan, Pakistan Petroleum, Atlas Honda, Pak-Suzuki Motors, Indus Motors, and Colgate Pakistan, which posted gains ranging from Rs8 to 15.
Losses on the other hand were mostly fractional barring HinoPak Motors and Siemens Pakistan, off Rs6.85 and 20 followed by Fazal Textiles, Zulfiqaur Industries, Dawood Hercules, Bata Pakistan, and Fauji Fertiliser, which suffered fall ranging from Rs3 to 5.
Trading volume showed a modest rise at 197m shares from the previous 151m shares as gainers forced a strong lead over the losers at 219 to 74, with 18 shares holding on to the last levels.
OGDC topped the list of most actives, higher by Rs5.95 at Rs125.65 on 29m shares followed by National Bank, up Rs9.40 at Rs197.65 on 27m shares, D.G.Khan Cement, firm by Rs4.05 at Rs85.30 on 17m shares, MCB, higher by Rs9.05 at Rs190.60 on 15m shares, Pakistan Petroleum, up Rs9.15 at Rs192.20 on 9m shares, Pakistan Oilfields, higher by Rs14.90 at Rs312.90 on 8m shares and PTCL, firm by Rs1.80 at Rs38.50 also on 8m shares.
Other actives were led by Lucky Cement, higher by Rs4.70 on 7m shares, Fauji Cement, firm by one rupee on 6m shares and Pakistan Cement, higher by 70 paisa also on 6m shares.
DEFAULTER COS: Trading on this counter was slow barring Crescent Standard Bank, which rose by 10 paisa at Rs4 on 0.171m shares. Others were modestly traded mostly on the higher side.