KARACHI, Feb 26: Stocks on Monday fell across-the-board on near-panic selling triggered by possible negative fallout of CLN-linked issues by some of the leading investors despite higher corporate announcements by leading companies. The KSE 100-share index shed 214 points or two per cent at 11,394.00.
Analysts said investor fears that the capital adequacy related issues under the Client Level Netting (CLN) regime to be implemented by March 4, 2007 may act as a drag on the KSE index in the coming weeks, was one of the chief reasons behind the sell-off. An increase in share transaction costs could well limit the daily volumes, they said.
The fear appears to be psychological rather than genuine, they said, adding the market has already braved many a crises and is firmly holding the index level of well over 11,000 points, an outstanding performance judged by any standard. A good part of the selling was tactical.
“The result-oriented market may response to its technical demands here and there but the future outlook appears to be bullish,” said a leading stock analyst Ashraf Zakria. “The fall and rise is the part of stock trading, which mostly adds to the inherent strength of the market”.
Another analyst Ahsan Mehanti says fears about the last March market crash may be lurking in the minds of investors but the current corporate scenario is pretty different from that both in terms of payouts and earnings.
The KSE 100-share index suffered sharp fall of 214.87 points at 11,393.97 as compared to previous 11,607.84 points as leading base shares remained under pressure throughout the session.
Bank shares under the lead of MCB and National Bank led the market decline followed by leading shares on the other counters, including oil and cement.
The management of National Bank of Pakistan had announced a cash dividend of 40 per cent plus bonus shares at the rate of 15 per cent, but a section of investors took profit thinking that the payout was on the lower side in view of its earnings, analysts said.
Faysal Bank announced a cash dividend of 25 per cent on EPS of Rs6.65, while Pakistan Oilfields, D.G. Khan Cement and Habib Metropolitan Bank came out with EPS of Rs19, Rs3.40 and Rs9.25 respectively.
Rafhan Bestfoods and Rafhan Maize were leading among gainers, up by Rs25 and Rs61.25 respectively, followed by Javed Omer, Fazal Textiles, Mehmood Textiles, Fateh Textiles, Clariant Pakistan and IGI Insurance, rose by Rs4 to Rs11.
Leading losers were led by Pakistan Services and Unilever Pakistan, off Rs19 and Rs50. Other notable losers included Lakson Tobacco, Javedan Cement, Pakistan Oilfields, Pakistan Petroleum, Galxo-SKF, Bata Pakistan, Berger Paints, MCB, National Bank and Engro Chemical, which suffered fall ranging from Rs5 to Rs14.10, the largest fall being in MCB and National Bank.
Trading volume fell to 187m shares from the previous 217m shares as losers held a strong lead over the gainers at 217 to 91, with 56 shares holding on to the last levels. OGDC came in for active selling and led the list of actives, lower by Rs1.30 at Rs121.50 on 23m shares followed by National Bank, off Rs14.10 at Rs273.00 on 14m shares, Fauji Fertiliser Bin Qasim, lower 60 paisa at Rs32 on 12m shares, Bank of Punjab, easy by Rs2.40 at Rs126 also on 12m shares, D.G. Khan Cement, lower 60 paisa at Rs81.65 on 12m shares, Pakistan Oilfields, off Rs4.50 at Rs348 on 10m shares, Bank Alfalah, off Rs2.70 at Rs51.60 and MCB, lower by Rs9 at Rs304 on 7m shares.
Other actives were led by Lucky Cement, easy by 80 paisa on 7m shares and Faysal Bank fell to close at Rs67.45 on 6m shares.
FORWARD COUNTER: National Bank also came in for active selling on this counter and fell by Rs14.11 at Rs274.30 on 12m shares followed by MCB, lower by Rs3.75 at Rs304.25 on 7m shares and OGDC, off Rs1.50 at Rs122.50 on 5m shares.
Among the other actives, D. G. Khan Cement was notable, off 85 paisa at Rs82.20 on 4m shares and Bank of Punjab, lower by Rs2.55 at Rs126.95 also on 4m shares.
DEFAULTER COS: Easy trend was also witnessed on this counter on renewed selling and the current actives fell under the lead of Norrie Textiles, off 30 paisa at Rs3.70 on 0.487m shares followed by Crescent Standard Bank, easy by 10 paisa at Rs4 on 0.363m shares and Nimir Chemical, unchanged at Rs2.80 on 0.340m shares.
Saitex Spinning and Zeal Pak Cement followed them, easy by five paisa at 55 paisa on 0.135m shares and lower by 20 paisa respectively at Rs5.30 on 0.135m and 0.153m shares.
DIVIDEND: Glaxo-SKF, cash 80 per cent, Soneri Bank, bonus shares, 10 per cent, Pak Datacom, interim 20 per cent, Berger Paints, interim, 25 per cent and Biafo Industries, second interim five per cent.