KARACHI, Aug 7: Stocks on Tuesday suffered fresh widespread fall on renewed foreign selling in the leading banking shares, but stray covering purchases on selected counters at dips limited the losses. The KSE 100-share index was off 77 points at 13,433.81.
Final dividend by PSO and Shell Pakistan at 110 per cent and 80 per cent, respectively, were well below the market expectations as was reflected by fall in their share values on selling.
But what seems to have accelerated the pace of selling was the absence of support, notably from the financial institutions even at the falling prices in the safe havens.
As a result, leading investors continued to liquidate long positions on the overvalued counters owing to fears about developing situation on the political front and the repeated threats by the US presidential hopefuls to hit Al Qaeda safe havens in Pakistan.
“The share market may not be that strong as it had been in July,” fears a leading analyst, adding “when foreign threats creep in investors think twice to put money in equities”.
On the home front, the political situation is not that encouraging as the contenders of the power have taken terribly rigid positions on some vital national issues on which the consensus appears to be too difficult, he said.
But some others said the current lull was temporary and the market would resume its upward drive aided by its own positive fundamentals in an oversold market.
The KSE 100-share index shed another 76.78 points at 13,433.81 as compared to 13,510.59 a day earlier as leading base shares fell further on renewed selling. The KSE 30-share index fell by 110.45 points at 16,067.35.
The market, however, seems to have absorbed the negative impact of notices issued to some of the brokers about the short-selling that led to market crash in June 2006 and suspension of trading in shares of Habib Bank on Monday, but external factors weighed heavily against the underlying sentiment.
It could witness snap flutters here and there but it appears difficult to sustain the current dividend-linked rally in the coming weeks owing to prevailing objective conditions, some others said.
Leading investors again avoided to take stake in the overvalued counters even those whose dividend announcements are due and mostly played on the second-liners to avoid risks but to keep the wheel moving, they added.
Minus signs again dominated the list under the lead of Pakistan Services and Siemens Pakistan, off Rs24.50 and Rs61, followed by Arif Habib Ltd, Javed Omer, Adamjee Insurance, EFU General, IGI Insurance, Exide Pakistan, Sanofi-Aventis, Gillette Pakistan, Dawood Hercules, Mari Gas and Shell Pakistan, which suffered fall ranging from Rs7.45 to Rs35.
EFU Life Insurance and JS & Co were leading among the gainers, up by Rs18.20 and Rs33.10. Other good gainers were led by JS Global, Javedan Cement, Abbott Lab, Unilever Pakistan, KSB pumps and National Refinery, which posted gains ranging from Rs4.50 to Rs19.
Trading volume rose to 237m shares from the previous 175m shares as losers maintained a strong lead over the gainers at 234 to 83, with 24 shares holding on to the last levels.
TRG led the list of actives, up by 40 paisa at Rs13.80 on 24m shares, followed by Bosicor Pakistan, lower 50 paisa at Rs20.10 on 13m shares, WorldCall Telecom, firm by 60 paisa at Rs20.25 on 11m shares and Fauji Cement, lower by 40 paisa at Rs21.30 on 10m shares.
Lucky Cement, up by Rs1.25 at Rs124 also on 10m shares, Hub-Power, off Rs1.25 at Rs33.15 on 8m shares and Bank of Punjab, easy by 55 paisa at Rs103 also on 7m shares.
Other actives were led by Azgard Nine, higher by Rs1.95 on 10m shares, followed by Fauji Fertiliser Bin Qasim, lower 85 paisa on 8m shares and Dewan Salman, up by 30 paisa on 7m shares.
FORWARD COUNTER: Lucky Cement came in for active support at the overnight lower level and was marked up by Rs.1.50 at Rs.124.70 on 10m shares followed by MCB, off Rs1.75 at Rs308.25 on 6m shares and National Bank, easy by Rs1.15 at Rs250.60 on 6m shares.
D.G. Khan Cement followed them, up by Rs2.70 at Rs109.85 on 5m shares and Bank of Punjab, off 55 paisa at Rs103.55 also on 5m shares.
DEFAULTER COS: Zeal Pak Cement led the list of actives on this counter, easy by five paisa at Rs6.65 on 0.836m shares followed by Japan Power, steady by 20 paisa at Rs8.90 on 0.630m shares and Nimir Chemicals, lower by 20 paisa at Rs4.20 on 0.559m shares.
Shakarganj Foods also came in for active support and was quoted higher by 70 paisa at Rs18.70 on 0.224m shares and so did S.S. Oil, higher by 95 paisa at Rs22 on 0.143m shares.
DIVIDEND: Shell Pakistan, cash final at the rate of 80 per cent, interim 160 per cent already paid (previous cash 300 per cent, bonus shares 25 per cent), PSO, final cash 110 per cent, total together with interim at 210 per cent (previous 340 per cent) and Wyeth Pakistan, cash 30 per cent.