KARACHI, Aug 28: Stocks on Tuesday showed an improved trend on strong selective buying on the banking and oil counters at the attractively lower levels but the broader market stayed weak in the absence of bargain hunters and speculative traders. The KSE index recovered 86 points at 12,040.89.
Indications are that the worst is over as investors are not inclined to resist an attractive bait of current lower levels that ensures handsome capital gains.
“Everyone is awaiting the needed push from the foreign investors who have been keeping to the sidelines owing to political uncertainty,” said a leading floor broker.
The KSE 100-share index staged a smart recovery boosted by active short-covering in the leading base shares and was quoted well above the barrier of 12,000 points at 12,040.89, up by 85.63 points, which incidentally was the session’s highest level.
The free-float 30-share index showed a bigger gain of 148.84 points at 14,487.42.
A massive recovery of Rs12.25 staged by the MCB, which holds the largest weightage of 11 per cent in the index was said to be the chief factor behind its surge, aided of course by an identical rise in OGDC, National Bank and some other pivotal.
Bank of Punjab, which came out with 10 per cent bonus shares, but its contribution to index recovery was not that tall, analysts said.
“Essentially, the recovery was based on the higher dividend and bonus shares pouring in each session in the form of both interim and finals,” analyst Ashraf Zakaria said, adding “the fact that investors did not go by the political tensions reflects that tired bulls are now not inclined to sit on the sidelines”.
However, the price flare-up on some of the blue chip counters was not matched by the turnover figure as investors who had purchased shares at much higher rates held on to their positions and did not oblige the buyers, he added.
But Hasnain Asghar Ali thinks investors seem to be encouraged by some positive developments on the political front and hope that the current efforts on national reconciliation may lead to sanity.
However, the consensus among the leading analysts is that the market may follow set course and the volatility could be the hallmark of future trading until the presidential election takes place.
Lakson Tobacco and Unilever Pakistan led the list of top gainers, up by Rs20 and Rs70, followed by JS Global, Shell Pakistan, PSO, Fazal Textiles, IGI Insurance, MCB, Ferozsons Lab, Attock Petroleum and Pak-Suzuki Motors, which posted gains ranging from Rs7.50 to Rs17.65.
But on the other hand Pakistan Reinsurance and Siemens Pakistan fell by Rs12.45 and Rs40 respectively. Other prominent losers were led by Javed Omer, EFU Life, Thal Jute, Pakistan Engineering, Dawood Hercules, Clover Pakistan and National Foods, which fell by Rs6.85 to Rs10.40.
Trading volume fell to 127m shares from the previous 135m shares as losers held a lead over the gainers at 175 to 125, with 35 shares holding on to the last levels.
OGDC topped the list of actives, up by Rs1.30 at Rs106.20 on 10m shares followed by PICIC, off Rs1.55 at Rs69.90 on 8m shares, National Bank, up by Rs4.15 at Rs226.65 on 6m shares and Lucky Cement, steady by Rs1.20 at Rs108.30 also on 6m shares.
Fauji Fertiliser Bin Qasim, firm by 10 paisa at Rs39.85 on 5m shares, Bank of Punjab, up by Re1 at Rs94 also on 5m shares and Bank Alfalah, steady by five paisa at Rs43.80 on 4m shares.
Other actives were led by Bosicor Pakistan, up by 25 paisa on 6m shares and Arif Habib Securities, off Rs1.40 on 5m shares.
FORWARD COUNTER: OGDC was also actively traded on this counter and was quoted higher by Rs1.47 at Rs106.27 on 6m shares, followed by National Bank, higher by Rs3.10 at Rs225.60 on 4m shares and MCB, up by Rs11.55 at Rs279.50 on 4m shares.
Lucky Cement followed them, up by Rs1.40 at Rs108.50 on 4m shares and Bank of Punjab, higher by Rs2.10 at Rs94 on 3m shares.
The notable feature was that trading also resumed in the September settlements side-by-side the maturing August contracts.
DEFAULTER COS: Zeal Pak Cement came in for active selling and was marked down by 15 paisa at Rs5.50 on 0.615m shares, followed by Japan Power, up by 25 paisa at Rs8.70 on 0460m shares and Nimir Chemicals, easy 15 paisa at Rs3.55 on 0.531m shares.
DIVIDEND: Adamjee Insurance, interim cash 15 per cent, Bank of Punjab, bonus shares, 10 per cent, First National Equities, cash 15 per cent (bonus shares of an identical amount), Pakistan Refinery, final 33.33 per cent and JS Global, cash 100 per cent, bonus shares 50 per cent.