KARACHI, Aug 12: The Karachi Stock Exchange (KSE) 100-share index again fell below the base level of 10,000 points at 9,963.58 on Tuesday as investors took profits at higher rates owing to prevailing political uncertainty and fate of the president after the impeachment resolution was tabled in the parliament.
In a falling market, the dividend news from the oil giants, PSO and Shell Pakistan, were on the higher side of the analysis predictions but failed to arrest the market decline. PSO though came out with a higher final cash dividend of 125 per cent (total 235 per cent) sans widely speculated bonus came in for active selling. Its share value shed Rs16.50 on post-dividend selling.
But on the other hand, a final cash at the rate of 400 per cent (interim 100 per cent already paid) plus bonus shares of 25 per cent were well received in the market as was reflected by a sharp rise of Rs18.30 in its share value.
A fall of 2.05 per cent in the index wiped out about a half of the gains netted during the last two sessions as no one is inclined to take long positions even on the blue chip counters in the backdrop of uncertain political scenario.
Some of the leading base shares received massive battering under the lead of MCB Bank, National Bank, PSO, Engro Chemical and Arif Habib Securities and drove the entire market along with them again into the minus column amid a galore of lower locks.
Instances of renewed foreign selling are not wanting and well reflected in the SCRA (Special Convertible Rupee Account) balances and steep fresh decline in MCB Bank, on GDR-linked selling, PSO, Engro Chemical and some others.
“One can cite a dozen negative reasons behind the market’s current highly erratic behaviour,” said a leading stock analyst Ashraf Zakaria, adding: “only valid reason is the lack of investor confidence in the share business”.
He said why an investor should put money in stocks amid eroding values and negative returns when he has some other profitable avenues to invest or may invest and await return of sanity on the political front.
The KSE 100-share index has, over the last couple of weeks fallen, from its career best level of 15,500 to below 10,000 points and it is not that difficult to fathom the reasons behind the massive crash, he added.
Another analyst Ahsan Mehanti said the market is expected to move within a narrow groove and one step forward and two steps backward, reflecting the political scenario.
Some of the leading shares managed to finish with an extended gain under the lead of Shell Pakistan and EFU Life Insurance, up by Rs18.30 and Rs15.22 followed by Adamjee Insurance, Tri-Pack Films, and JS & Co, which were quoted higher by Rs7.70 to Rs9.28. But on the other hand, PSO and Pakistan Oilfields fell by Rs16.50 and Rs14.20, respectively. JS Global, Mari Gas, Pakistan Petroleum, Indus Motors, Engro Chemical, Dawood Hercules, Packages and MCB followed them, off by Rs8 to Rs13.91.
Trading volume fell to 82m shares from the previous 122m shares as losers forced a strong lead over gainers at 192 to 69, with 16 shares holding on to the last levels.
National Bank came in for active selling and led the list of actives, sharply lower by Rs5.70 at Rs108.40 on 6m shares followed by OGDC, easy by Rs1.24 at Rs110.36 also on 6m shares, MCB Bank, sharply lower by Rs13.91 at Rs268.20 on 4m shares, Arif Habib Securities, off Rs5.75 at Rs268.20 also on 4m shares, PSO, off Rs16.50 on 3m shares and Engro Chemicals, Rs9.82 at Rs186.68 on 2m shares.
Other actives were led by Zeal Pak Cement, lower by nine paisa at Rs1.47 on 6m shares, NIB Bank, easy by 29 paisa at Rs8.83 on 4m shares, Atlas Fund of Funds, easy by six paisa at Rs7.33 on 2m shares and Javed Omer & Co, up by Rs1.36 at Rs28.56 on post-bonus buying.
DEFAULTER COMPANIES: Barring Norrie Textiles, which came in for stray selling and fell by two paisa at Rs1.55 on 0.215m shares, all other share were modestly traded and mostly on the lower side.
DIVIDEND: Unilever Pakistan Foods, interim cash at the rate of 220 per cent, Fauji Fertiliser Company, second interim, 30 per cent, Glaxo-SKF, cash interim 25 per cent, Javed Omer, bonus shares 10 per cent.