KARACHI, Feb 27: Share market on Tuesday resisted larger fall as dividend-linked news triggered active short-covering on some of the counters at the overnight lows amid an actively traded session.
However, the underlying sentiment remained bearishly inclined as foreign buyers remained conspicuous by their absence apparently having an overview of the Dick Cheney’s unannounced dash to Islamabad and rumours of “tough message”.
Dividend announcements by Allied Bank (cash 25 per cent cash plus 20 per cent bonus shares), HinoPak Motors (105 per cent final), Millat Tractors (interim 100 per cent) were on the higher side of the analyst predictions but some of them encountered post-dividend selling and fell sharply lower.
After overnight’s steep decline, stocks resumed trading on a higher note followed by modest short-covering at the dips and finished partially recovered under the lead of some leading base shares.
The KSE 100-share index finished with a fresh modest fall of 17.85 points at 11,376.12 after early having touched the session’s low and high at 11,250.97 and 11,409.45, respectively.
Active short-covering in the leading base shares, notably OGDC, National Bank, Bank AlFalah and some others limited the fall in the index, protecting it from widely speculated fresh bear onslaught.
An erratic movement of 159 points reflects the volatility of the investor’s mind and his future perceptions about the developing political scenario in the backdrop of US Vice-President Dick Cheney’s snap dash to Islamabad and his talk with the president on border issues.
“There was a loud whispering in the market that he may have carried a tough message and it could have negative impact on the crucial ties including on the aid front,” some analysts fear.
The market should have rebounded from the overnight lows on the strength of positive news from the corporate front but was partially weighed down by conflicting rumours about the Dick Cheney’s visit, they said.
“There is no reason to believe that corporate result-oriented market could falter half way,” brokers said adding “some of the best announcements are just around.”
The board meetings of ICI Pakistan, Bank of Punjab and Sui Southern Gas Company are due on Feb 28 (Wednesday) and there is a talk of higher cash dividend plus bonus shares, they said.
But they ruled out the possibility of larger volume until the market absorbed the negative fallout of a fresh risk management measure known as Client Level Netting(CLN) to be implemented from March 4. Brokers say it will add to the transaction costs.
Minus signs dominated the list under the lead of Wyeth Pakistan and Siemens Pakistan, off Rs46 and Rs60 followed by Millat Tractors, MCB, United Bank, Grays of Cambridge, Sanofi-Aventis and Treet Corporation, which were marked down by Rs5.90 to Rs12.10.But on the other hand HinoPak Motors and Colgate Pakistan managed to put on modest gains of Rs8.55 and Rs9.90. They were followed by Javedan Cement, Fazal Textile, Pakistan Engineering, Glaxo-SKF and Bata Pakistan, higher by Rs4 to Rs6.90.
Trading volume showed a modest rise at 193m shares from the previous 187m shares but losers maintained a strong lead over the gainers at 214 to 106, with 41 shares holding on to the last levels.
Bank Al-Falah topped the list of most actives, higher by Rs1.80 at Rs53.40 on 23m shares followed by OGDC, steady by 75 paisa at Rs122.25 on 21m shares, National Bank, up by Rs2.50 at Rs275.50 on 19m shares, Bank of Punjab, lower by Rs1.25 at Rs124.75 on 14m shares, Kot Addu Power, firm by 55 paisa at Rs54.50 on 10m shares, Faysal Bank, easy 45 paisa at Rs67 also on 10m shares and Hub-Power, up 50 paisa at Rs32.60 on 7m shares.
Other actives were led by Fauji Fertiliser Bin Qasim, easy by five paisa on 9m shares, Pakistan Oilfields, off Rs1.10 on 7m shares and D.G.Khan Cement, lower 30 paisa on 6m shares.
FORWARD COUNTER: National Bank came in for active short-covering at the overnight lows and recovered to close higher by Rs2.25 at Rs276.55 on 18m shares followed by MCB, off Rs5.80 at Rs298.45 on 13m shares and Bank of Punjab, lower by 1.80 at Rs125.15 on 7m shares.
They were followed by Bank AlFalah, up Rs1.85 at Rs53.65 on 7m shares and OGDC, firm by 70 paisa at Rs123.20 on 5m shares. Others were modestly traded mostly on the lower side.
The notable feature was that the matured February settlements were rung off the board and the March contracts resumed the role of ruling deliveries.
DEFAULTER COS: Crescent Standard Bank led the list of actives, up five paisa at Rs4.05 on 0.242m shares followed by Nimir Chemical, steady by also five paisa at Rs2.85 on 0.166m shares and Japan Power, easy five paisa at Rs4.20 on 0.163m shares.
Norrie Textiles and Unity Modaraba also came in for modest support and finished higher by 10 paisa at Rs3.80 on 0.149m shares, but the former was held unchanged at 65 paisa on 0.157m shares.