KARACHI, March 1: Stocks on Thursday were back on the rails amid active covering purchases on selected counters followed by reports that the KSE members had agreed to elimination of Client Level Netting (CLN) system from March 5.
But the recovery appeared to be inconclusive as some of the leading base shares remained under pressure and finished with an extended fall, major losers among them being OGDC, National Bank and some others.
The KSE 100-share index recovered to close higher at 11,207.79, up 27.82 points but well below the session’s high of 11,288.48 owing to late selling in some of the leading base shares.
It was the relative strength of the index heavy-weight MCB Bank which put it back on the rails after active buying at the recent lows below Rs300 per share.
Trading resumed under the influence of fresh massive fall on the regional markets despite a strong rebound of the Shanghai bourse after Tuesday’s crash, but news of settlement of CLN issue and its implementation on the scheduled date triggered a lot of short-covering by all and sundry.
Floor brokers said some of the foreign funds liquidated their long positions in leading bank and oil shares which did not allow consolidation forces to come into full play.
However, the KSE members have some reservations on the issue and requested the SECP to remove anomalies and clear the other pending issues linked with the risk management regime, brokers said.
Analysts said the future market trend will be set on next Monday after the CLN will be in place and how investors play amid enhanced exposure limits.
But some others said the impact would be minimal as worst had already taken place during the last couple of sessions and investors would like to follow the guidelines set by the SECP leading to a more transparent stock trading.
Some of the leading MNCs led the market rise under the lead of Nestle Pakistan and Sanofi Aventis, which rose by Rs73 and Rs8. Others good gainers included United Bank, MCB, JS Global, HinoPak Motors, Sapphire Fibres and Bata Pakistan, higher by Rs4.65 to Rs7.60.
But losses on the other hand were fractional and reflected lack of support rather than large selling. Treet Corporation and Wyeth Pakistan were leading among them and fell by Rs8 to Rs70. They were followed by KSB Pumps, EFU Life, Murree Brewery, Indus Dyeing and Packages, which suffered fall ranging from Rs2 to Rs5.
Trading volume remained light in the absence of speculative support and amounted to 166m shares as compared to previous 161m shares as gainers cut short the strong lead held by the losers for the last couple of sessions to 169 against 156, with 49 shares holding on to the last levels.
D.G. Khan Cement came in for strong support and finished higher by Rs3.90 at Rs84.55 on 25m shares followed by OGDC, lower by 40 paisa at Rs118.85 on 17m shares, Fauji Fertiliser Bin Qasim, easy 55 paisa at Rs30.40 on 10m shares, Bank of Punjab, off 80 paisa at Rs120.90 on 8m shares, National Bank, lower 30 paisa at Rs268.70 also on 8m shares and MCB, sharply higher by Rs6 at Rs299 on 7m shares.
Bank Alfalah followed them, easy by 60 paisa on 7m shares, Azgard Nine, up by 80 paisa on 5m shares and Fauji Cement, steady by 25 paisa also on 5m shares.
FORWARD COUNTER: D.G. Khan Cement also led the list of actives, up by Rs4.05 at Rs85.25 on 14m shares followed by National Bank, lower 60 paisa at Rs269 on 8m shares and OGDC, eassy by 45 paisa at Rs119.70 on 8m shares.
Other actives included MCB, higher by Rs6 at Rs298.80 on 7m shares and Bank of Punjab, off Rs1.20 at Rs121.80 on 5m shares.
DEFAULTER COS: Crescent Standard Bank was actively traded, up by 30 paisa at Rs4.25 on large volume of 2.356m shares followed by Norrie Textiles, steady by 15 paisa at Rs3.85 on 0.296m shares and Zeal Pak Cement, higher by 20 paisa at Rs5.40 on 0.297m shares.
Nimir Chemical on the other hand came in for active selling and fell by five paisa at Rs2.70 on 0.273m shares, while Japan Power rose by 15 paisa at Rs3.85 on 0.134m shares.