KARACHI, Sept 19: Stocks on Tuesday resisted fresh decline on active short-covering on selected counters, notably leading base shares but the underlying sentiment remained mixed.
Leading oil, bank and cement shares led to the market resistance on support at attractively lower levels but failed to evoke sympathetic buying on other blue chips. The broader market remained lacklustre in the absence of demand from any quarter.
The KSE 100-share index recovered 32.45 points at 9,908.85 as compared to 9,876.40 a day earlier, as leading index shares finished recovered under the lead of MCB, National Bank and Pakistan Petroleum.
The KSE 30-share index posted a gain of 56.81 points at 12,305.74 as compared to the previous 12,248.93 points, but the direction of the market is still unclear.
Trading volume on the other hand did not show any significant change, as investors played on both sides of the fence on short-term basis without taking long positions on any of the counters.
Dividend announcements by textile and some other sectors gave a pleasant surprise to analysts as most of them were well above their predictions. A stock dividend of 400 per cent by Artistic Denim, for instance, was beyond their statistical analysis, brokers said.
“The market does not need instant stimulants as the falling volumes indicate,” says a leading analyst. “The prevailing status quo qualifies for a massive inflow of liquid cash.”
The holy month of Ramazan is expected to start next week and it could further add to the current sluggishness, as a section of leading investors generally play safe during fasting.
The market in part also aided by a loud whispering that the in-house financing facility was expected to be extended beyond the stipulated date of Oct 2, 2006, some others said.
Among the leading gainers, Nestle Pakistan and Unilever Pakistan were leading, up by Rs30.05 and Rs97.50, respectively, followed by Siemens Pakistan and Arif Habib Securities, up Rs20 and Rs26.35. Union Bank, Shaheen Insurance, HinoPak and Shell Pakistan were quoted higher by Rs4 to Rs7.85.
Losers were led by Jahangir Siddiqui & Co and Grays of Cambridge, off Rs9 and Rs12.50, respectively. Dawood Hercules, Atlas Honda, Treet Corporation, IGI Insurance, and Jahangir Siddiqui Capital followed them, off Rs4.05 to Rs7.35.
Trading volume showed a modest rise at 75.865m shares as compared to 67m shares a day earlier but losers held a strong lead over gainers at 167 to 104, with 49 shares holding on to the last levels.
DG Khan Cement led the list of actives followed by reports of higher dividend, up Rs1.75 at Rs95.10 on 11m shares, followed by MCB, up Rs2.55 at Rs230.80 on 8m shares, National Bank, higher by Rs1.10 at Rs227.80 on 7m shares, Pakistan Petroleum, higher by Rs1.50 at Rs222 on 5m shares, PICIC, up Rs1.25 at Rs68.15 on 5m shares, Pakistan Oilfields, up Rs1.05 at Rs319 on 2m shares, and PTCL, steady 15 paisa at Rs40 also on 2m shares.
Other actives were led by Fauji Cement, lower 20 paisa on 3m shares, Nishat Mills, steady by five paisa also on 3m shares, and Lucky Cement, easy 15 paisa on 2m shares.
DEFAULTER COS: Norrie Textiles led the list of actives, off 35 paisa at Rs2.15 on 0.839m shares, followed by Unity Modaraba, firm by five paisa at 65 paisa on 0.541m shares, and Crescent Investment Bank, lower 10 paisa at Rs2.50 on 0.442m shares. Others were traded modestly on both sides.
DIVIDEND: DG Khan Cement, cash 15 per cent, bonus shares 10 per cent; Dawood Investment Bank, bonus share 15 per cent; Quality Textiles, cash 10 per cent; Otsuka Pakistan, 22.5 per cent; Askari Leasing, bonus shares 15 per cent; Nishat Mills, cash 15 per cent, bonus 10 per cent; Haji Dossa, 20 per cent; Polyron, Crescent Jute, Safa Textiles and Pakistan International Element Islamic Fund, all nil.