KARACHI, March 6: Share market on Tuesday resisted fresh fall aided by modest short-covering at the lower levels on selected counters as some of the investor worries related to the new CLN regime were removed by the Monday’s meeting of SECP-KSE high-ups.
But the highly erratic price movements and volatility of the index reflected the prevailing turmoil on the global equity markets did not allow consolidation forces to play their due role, analysts said.
After having fallen by 700 points or four per cent during the last couple of sessions, stocks were back on the rails on stray covering purchases in the leading base shares.
The KSE 100-share index recovered to close higher by 24.19 points at 10,923.90 after having touched at one stage the coveted level of 11,000 points, reflecting instability in the market trend.
But the rally was too feeble to wipe out even a part of massive losses suffered by most of the leading shares during the current sell-off analysts, however, hoped that market was expected to respond positively to its technical demand.
Apart from an overdue technical correction at the lower levels, the positive change in the underlying sentiment despite the turmoil in the global markets was attributed to modest downward adjustments in yields on Pakistan Investment Bonds (PIBs).
Investors’ worries about some of the steps taken by the regulatory authority including new CLN system were removed after Monday’s KSE-SECP high-ups meeting but some of them were seeking the removal of the remaining ones too, brokers said.
The KSE 100-share index though managed to finish with a modest rise, but its steep decline from the session’s high of 11,070.84 reflected that investor perceptions were still blurred over some of the bad news, notably successive threats from the US on the Taliban issue.
“Act now or let us do it” the latest US threat sent shock waves among the investors on Monday “but positive reply by the government on the issue and defense of borders was welcomed by the investors as was reflected in the change of the market trend”.Plus signs dominated the list under the lead of Treet Corporation and IGI Insurance, up by Rs10 and Rs17.90. Other prominent gainers included Habib Metropolitan Bank, MCB, Indus Motors, J.S. Global, Bata Pakistan and Lakson Tobacco, up by Rs4.40 to Rs9.
Adamjee Insurance and Unilever Pakistan fell by Rs8 and Rs100 respectively followed by Javedan Cement, Pakistan Refinery, Atlas Honda, Nestle Pakistan, Engro Chemical, National Refinery, Pakistan Oilfields, Pakistan Petroleum and Pakistan Refinery, off by Rs3 to Rs5.
Trading volume showed a modest increase at 135m shares from the previous 117m shares as gainers forced a strong lead over the losers at 171 to 144 with 48 shares holding on to the last levels.
The most active list was topped by Bank Alfalah, up by 75 paisa at Rs51.25 on 14m shares followed by OGDC, easy by five paisa at Rs115.25 on 10m shares, D.G.Khan Cement, firm by Rs1.15 at Rs83.65 on 7m shares, Pakistan Petroleum, off Rs3.75 at Rs242.50 also on 7m shares, National Bank unchanged at Rs260 on 6m shares and MCB, up by Rs4.90 at Rs291.30 on 5m shares.
Other actives were led by Lucky Cement, up by Rs1.45 on 7m shares, Kot Addu Power, unchanged also on 7m shares and Pace Pakistan, lower by Rs1.10 on 5m shares.
FORWARD COUNTER: National Bank led the list of actives on this counter on stray short-covering and finished with a fractional rise of 13 paisa at Rs260.75 on 7m shares followed by MCB, up by Rs6.90 at Rs293.90 on 6m shares and OGDC, lower 25 paisa at Rs116.25 on 6m shares.
Pakistan Petroleum followed them, off Rs5.10 at Rs243.65 on 5m shares and PTCL, easy by 75 paisa at Rs50 on 4m shares.
DEFAULTER COS: Crescent Standard Bank came in for active support and led the list of actives on this counter, steady by five paisa at Rs4 on 1.693m shares followed by Unity Modaraba, unchanged at 55 paisa on 0.521m shares and Nimir Chemicals, lower by five paisa at Rs2.50 on 0.451m shares. Zeal-Pak Cement was marked down five paisa at Rs5.05 on 0.250m shares.
DIVIDEND: Century Insurance, cash 10 per cent, bonus shares 25 per cent for the year ended Dec 31, 2007.