KARACHI, July 21: Stocks on Friday rebounded from the initial lows on strong covering purchases after official clarification that stamp duty on electronic share transactions is at the rate of 0.1 per cent of the par value and not Rs0.10 per share. The KSE 100-share index rose by 59.31 points well above the crucial level at 10,258.
Stocks, therefore, shrug off the overnight hesitancy and were back of the rails and ended modestly higher after bearish opening followed by profit-selling triggered by reports that electronic transactions into the CDC will be brought under the umbrella of stamp duty.
The late recovery was also attributed to market talk that foreign banks have been allowed to buy and sell shares on the forward counter.
But active short-covering in leading oil and cement shares at lower levels prompted sympathetic buying from the bargain-hunters and speculators on other counters allowed the market to end the weekend session on a positive note.
The KSE 100-share index posted a modest rise of 59.31 points at 10,257 as compared to 10,198.32 a day earlier, as all leading index shares rose sharply higher.
The fact that the index managed to end the week above the crucial level of 10,000 points reflects that the proceeding during the next week could be fairly impressive, brokers said.
The market talk of higher dividend by most of the leading companies just at the heels of Rafhan Maize Products, which came out with second interim dividend of 200 per cent, payout of an identical amount already paid, did not allow investors to miss an attractive bait of capital gains, they added.
The perception that the duty will add to transaction costs and eventually curtail trading activity seems to be the chief factor behind the sell-off weekend considerations notwithstanding.
“Stay away for a couple of sessions and wait for further fall in share values,” a leading stock analyst warned prospective buyers “the prevailing situation is fraught with risks.”
Leading gainers were led by EFU Life, IGI Insurance, Attock Cement, Pakistan Refinery, International Industries, Mustehkam Cement, Pakistan Petroleum, Millat Tractors, Pak-Suzuki Motors, Artistic Denim, Abbott Lab and Colgate Pakistan, up by Rs5.50 to Rs12.
Losses on the other hand were mostly fractional barring Mari Gas, Shaheen Insurance, Clariant Pakistan, Zulfiquar Industries and Shell Pakistan, off Rs3.05 to Rs6.60.
Trading volume suffered sharp fall at 223m shares as compared to 352m shares a day earlier but gainers maintained a fair lead over losers at 139 to 121, with 40 shares holding on to the last levels.
The most active list was topped by OGDC, up 70 paisa at Rs137.45 on 27m shares, Pakistan Petroleum, higher by Rs7.70 at Rs240.50 on 26m shares, PTCL, up Rs1.05 at Rs43.50 on 19m shares, National Bank, firm by 85 paisa at Rs221.95 on 11m shares, MCB, off Rs1.30 at Rs218.70 on 8m shares, and DG Khan Cement, lower Rs1.15 at Rs97.30 on 14m shares.
Other actives were led by Fauji Cement, lower 15 paisa on 16m shares, Azgard Nine, up Rs1.40 on 13m shares, WorldCall, easy 15 paisa on 11m shares, and PICIC, higher by 80 paisa on 8m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives on this counter, up Rs8.25 at Rs240.25 on 10m shares, followed by OGDC, higher by 95 paisa at Rs137.55 on 7m shares, and DG Khan Cement, off Rs1.45 at Rs97.30 on 5m shares.
They were followed by National Bank, off Rs1.15 at Rs221.55 on 4m shares and PTCL, up one rupee at Rs43.50 on 3m shares.
DEFAULTER COS: Barring Crescent-Standard Bank, which came in for modest support and rose by 10 paisa at Rs4.20 on 0.177m shares, others were modestly traded but mostly on the higher side.
BOARD MEETINGS: Pakistan Premier Fund, Century Papers, on July 24; PICIC Commercial Bank, Fauji Fertiliser Bin Qasim, BOC Pakistan, on July 25; Unilever Pakistan, Engro Chemical, on July 26; Faysal Bank, Siemens Pakistan, Rafhan Bestfoods, Habib Sugar, Exide Pakistan, on July 27; Honda Atlas Cars, PICIC Investment Fund, PICIC Growth Fund, PICIC Energy Fund, on July 29; Fauji Fertiliser, on July 31.