KARACHI, Feb 6: Stocks on Monday finished on a higher note despite a good bit of profit-selling on some overvalued counters as a section of investors covered positions at the dips. The KSE 100-share index ended with an extended gain of 42.40 points at 11,632.04 but well below the session’s high.
But analysts were unsure about the near-term outlook as the market is in a highly overbought position and could attract a lot of selling if some of the leading bears opt for unloading at the current levels.
Trading resumed on an encouraging note, what the dealers called, an extension of the weekend bull-run, after Monday’s closure on account of Kashmir holiday as leading shares finished further higher under the lead of banking sector on renewed buying.
But there was a lot of profit-selling at the inflated levels on some of the counters under the lead of OGDC, Pakistan Petroleum and PTLC, three leading base shares.
The profit-selling was also reflected in the KSE 100-share index, which after having risen to session’s high of 11,761.58, finished reacted at 11,632.04, up 42.40 points as some of base shares, notably National Bank and Pakistan Oilfields closed with fresh gains.
“No one could deny the fact that the market is now in a highly overbought position after last six weeks sustained run-up and needs correction,” a leading analyst Ashraf Zakaria said. “But it is pretty difficult to say about the size of correction after 2,000 point rise.”
But Ahsan Mehanti says the best of the corporate announcements are still to come and a brief interruption may not cause any major dents in the current price levels.
He said buying offers both from the locals and foreign investors have not dried up and dips on the selected counters will attract any amount of support aimed at capital gains.
“I don’t think bears could drive the market down from the current levels before the end of next month as there will a lot of stimulants in between to sustain the investor’s interest, notably higher payout and bonus issues,” another analyst Faisal A. Rajabali predicts.
Moreover, technical corrections are essential of the market health as they adds to the inherent strength to the market rather than halting its upturn, he said.
Plus signs dominated the list under the lead of Nestle Pakistan and Wyeth Pakistan, up by Rs10.05 and Rs39 followed by Arif Habib Ltd, Arif Habib Securities, EFU General and Life, Thal Industries, Mustehkam Cement, PSO, Dawood Hercules, and Engro Chemicals, which posted gains ranging from Rs5.15 to Rs9.15.
Pakistan Refinery and Siemens Pakistan were leading among the losers, off Rs11 and Rs64.75. Other prominent losers included Pakistan Petroleum, Clariant Pakistan, Clover Pakistan, Colgate Pakistan, Gillette Pakistan, Shell Pakistan and Adamjee Insurance, which suffered fall ranging from Rs3 to Rs5.45.
Trading volume was maintained on the higher side amid alternate bouts of buying and selling totaling 423.384m shares as gainers held a strong lead over the losers at 182 to 143, with 44 shares holding on to the last levels.
OGDC topped the list of actives, off 90 paisa at Rs130.90 on 49m shares followed by Bank of Punjab, lower 60 paisa at Rs123.60 on 36m shares, Fauji Fertiliser Bin Qasim, easy 90 paisa at Rs33.10 on 29m shares, PTCL, lower 45 paisa at Rs54.30 on 24m shares, National Bank, up Rs1.55 at Rs294 on 23m shares, Bank AlFalah, up Rs1.50 at Rs50.75 on 22m shares, Kot Addu Power, up Rs1.65 at Rs51 on 20m shares.Other actives were led by Pakistan Petroleum, off Rs2.50 on 17m shares followed by Askari Bank, up Rs3.70 on 15m shares and Pakistan Oilfields, higher by Rs4.50 also on 15m shares.
FORWARD COUNTER: OGDC also came in for active profit-selling on the cleared list and was marked down by Rs1.15 at Rs131.25 on 13m shares, followed by Bank of Punjab, lower by 95 paisa at Rs123.55 on 10m shares and National Bank, higher by one rupee at Rs295 on 9m shares.
Pakistan Petroleum followed them, off Rs3.50 at Rs268.50 on 6m shares and Fauji Fertiliser Bin Qasim, easy by 61 paisa at Rs33.44 on 6m shares.
DEFAULTER COS: Active trading was witnessed on this counter as some of the leading shares came in for strong buying under the lead of Zeal Pakistan Cement and Crescent Standard Bank, which rose by one rupee and 10 paisa at Rs5.25 and Rs4.45 on 1.686m and 1.293m shares, respectively.
Norrie Textiles and Nimir Chemicals followed them, the former up by 50 paisa at Rs4.50 and the latter eased by five paisa at Rs3.10 on 0.632m and 0.238m shares, respectively.
DIVIDEND: TriPack films, cash at the rate of 50 per cent and Pakistan Services 15 per cent for the year ended Dec 31, 2006.