KARACHI, March 4: Stocks on Monday resumed trading on a hesitant note as a section of leading investors opted for profit-selling in the blue chips at the inflated levels but there was no dearth of buyers.
All the sale offers were readily absorbed, notably at the dips as long-term perceptions about a robust market did not allow investors to indulge in larger selling.
After opening fairly strong and rising by 15 points, the KSE 100-share index finally finished fractionally down by 1.58 points at 1,772.93 as compared to 1,774.51 at the last weekend.
Floor brokers said although there was no negative news that could inhibit fresh buying, the relative uncertainty appeared to be quite intriguing as was reflected by short-term dealings.
“Investors have just resorted to short-term trading, selling at the rise and buying at the fall and try to get out of the market the same day,” stock analysts at the W.E. Financials say.
The index level of 1,800 point appears to have become an impediment for the market as it fails to sustain it despite having touched it more than one time during the last couple of months, they added.
However, it is satisfying to note that support level of 1,750 is judiciously maintained thanks to outstanding performance of PTCL, Hub-Power and PSO and several others including Sui Northern.
“The market is preparing to give a befitting response to the imminent sell-off of some mega issues, notably PSO and that perhaps why its performance is volatile and is shy of breaching through the barrier of 1,800 points,” stock analysts at the AHRL believe.
But stock analysts at the Moosani Securities say there is nothing inherently wrong with the underlying and the market is just consolidating for a “big imminent run-up”. “The calm is temporary and could pave the way for a sustained price flare-up.”
The broader market performed mixed, although some of the leading blue chips attracted profit-selling at the last week’s inflated levels under the lead of Hub-Power and PTCL followed by leading textile shares including Nishat Chunnian and Burewala Textiles.
Among the advancing shares, Wyeth Pakistan again resumed its upward trend as it moves within a cycle of rise and fall within an either-way range of Rs50. It rose by Rs15 at Rs220 on only 500 shares, reflecting the shortage of floating stock.
Kohat Cement, Rupali Polyester, Shell Pakistan, Indus Motors, Mari Gas in response to increase in gas prices, Nestle MilkPak and Tri-Pack Films, which posted gains ranging from Rs1.25 to Rs3.35.
Losses on the other hand were mostly fractional barring 13th ICP, Javed Omer, IGI Insurance Shafiq Textiles, Engro Chemical and Lever Brothers, which fell by Re1 to Rs2.
Trading volume shrank to 208m shares from 263m shares at the last weekend but gainers and losers were almost evenly matched at 90 to 93, out of 229 actives, with 46 shares remaining pegged at the last levels.
PTCL led the list of actives, lower 20 paisa at Rs19.35 on 68m shares followed by Hub-Power easy 30 paisa at Rs29.20 on 65m shares, Sui Northern, higher 35 paisa at Rs14.35 on 22m shares, PSO, firm by 15 paisa at Rs146.40 on 16 shares and FFC-Jordan Fertilizer, up 20 paisa at Rs5.80 on 6m shares.
Other actives were led by Fauji Fertilizer, easy five paisa on 4.847 shares, D.G.Khan Cement, up 45 paisa on 4.752m shares, Southern Electric, higher 70 paisa on 2.867m shares, ICI Pakistan, higher 60 paisa on 2.604m shares and Dewan Salman, up 25 paisa on 2.458m shares.
FUTURE CONTRACTS: Mixed trend was seen on this counter where leading speculative shares rose and fell fractionally barring Engro Chemical, which came in for active selling and fell by Rs1.80 at Rs70.90 on 0.153m shares.
Hub-Power led the list of most actives, lower 30 paisa at Rs25.75 on 5.783m shares followed by PTCL, easy 20 paisa at Rs19.45 on 2.790m shares and Sui Northern, up 30 paisa at Rs14.45 on 1.374m shares.
DIVIDEND: International General Insurance cash 50pc, bonus shares 10pc, Nadeem Textiles, 12.5pc, Hamza Sugar Mills, 10 per cent, Al-Qadir Textiles five per cent, Ghani Textiles, Ansari Sugar, Sakrand Sugar and Data Textiles, all nil.