KARACHI, Aug 21: Stock market on Monday lacked normal trading interest as leading investors and institutional traders kept to the sidelines most of the time for no apparent bearish reason. The KSE index was off 81.24 points at 10,481.64.
Active selling in National Bank after the omission of widely expected interim dividend despite higher profits, a section of leading investors may have found it below their targeted level and unloaded long positions in it, pushing its share value lower by Rs4.10 at Rs229.40.
Trading resumed on a higher note as investors extended modest support apparently awaiting some positive news from the corporate front including bank and cement sectors. But as the follow-up support turned shy, the market ended on an easy note.
The KSE 100-share index suffered a setback of 81.24 points at 10,481.64 as compared to last weekend’s 10,562.88 points as leading index shares fell under the lead of OGDC, Pakistan Petroleum, National Bank, Pakistan Oilfields and MCB. It touched the lowest and highest for the day at 10,411.32 and 10,606.17 respectively, showing an erratic movement of 195 points.
It was the first session of the rollover week for the maturing August settlements and investors played safe watching the developments on the forward counter about clearing of positions. However, indications are that sailing would be smooth for the second week in a row as investors played safe owing to ban on short-selling.
Lack of interest to covering positions at the lower levels was also attributed to reports that the KSE decision to lift ban on short-selling in future contracts is subject to SECP approval added uncertainty to the market amid fears that the regulator may not allow lifting of the ban, analysts said.
Interim as well final working results of some of the leading companies, notably banks and cement are due by the end of the this month but the current lull appears to be a prelude of a sustained run-up, floor brokers said.But some others said the market has already absorbed the positive impact of dividend announcements by some of the leading companies and its future outlook could be anybody’s guess.
Although minus signs dominated the list under the lead of Artistic Denim and Pakistan Services, off Rs10 and Rs15, they were followed by Adamjee Insurance, Arif Habib Securities, Jahangir Siddiqui & Co, National Refinery, Attock Petroleum, Siemens Pakistan, Dawood Hercules, Nestle Pakistan and Treet Corporation, off by Rs5.95 to Rs8.45.
Colgate Pakistan and Wyeth Pakistan managed to finish higher with an extended gain of Rs20 and Rs85 owing to shortage of floating stock. Other good gainers included Millat Tractors, Mari Gas, HinoPak Motors, Pakistan Engineering, Clover Pakistan and AKD Securities, up by Rs5.05 to Rs8.50.
Trading volume was light at 121m shares as compared to 104m shares at last weekend as gainers trailed far behind the losers at 193 to 86, with 28 shares holding on to the last levels.
D.G. Khan Cement led the list of actives, up by Re1 at Rs100.20 on 17m shares, followed by PTCL, easy 15 paisa at Rs44.55 on 13m shares, Pakistan Oilfields, off Rs2.45 at Rs380.80 on 9m shares, OGDC, easy by Rs1.15 at Rs135.60 on 8m shares, National Bank, lower Rs4.10 at Rs229.40 also on 8m shares, MCB, easy 85 paisa at Rs229 on 6m shares and Pakistan Petroleum, off Rs4.55 at Rs251 on 5m shares.
Other actives were led by Bank of Punjab, off Re1 on 7m shares, Fauji Fertiliser Bin Qasim, steady by 15 paisa on 4m shares and Hub-Power, higher by 60 paisa also on 4m shares.
FORWARD COUNTER: D.G. Khan Cement also led the list of actives on this counter, up by 60 paisa at Rs110.10 on 3m shares, Pakistan Oilfields, up by Rs2.65 at Rs386 also on 3m shares for the newcomer September contract, while its ruling settlement was off Rs1.90 at Rs381.45 on 2m shares. The notable feature was that trading also resumed in the September contracts side by side the maturing August deliveries.
National Bank ruling contract fell by Rs3.65 at Rs229.80 on 2m shares, while its September contract was marked down by Rs1.05 at Rs232.40 also on 2m shares.
DEFAULTER COS: Trading on this counter also remained insipid in sympathy with the ready counter and prices generally showed fractional movements. Norrie Textiles came in for modest selling was marked down by 35 paisa at Rs3.05 on 0.171m shares.
DIVIDEND: Soneri Bank, bonus shares at the rate of 20 per cent and right shares at 25 per cent but they are not entitled to stock dividend.
BOARD MEETINGS: Century Insurance on Aug 25, PICIC, Metropolitan Bank, on 26, Azgard Nine on Aug 27, EFU Life, EFU General Insurance, Silver Star Insurance and Wah Nobel Chemical on Aug 28 and General Tyre on Aug 29.