KARACHI, Sept 1: Stocks on Monday passed through another lean session as leading investors and institutional traders kept to the sidelines most of the time as was reflected by fractional either-way price changes and light volume even on the blue chip counters.
The KSE 100-share index posted a fractional rise of 1.89 points at 9,210.15 on the relative strength of leading base shares, notably MCB Bank, Engro Chemicals and OGDC and some others, but meager volume tells a different story.
An idea of the prevailing sluggishness may well be had from the fact that even a record bonus shares at the rate of 500 per cent by the National Foods failed to generate fresh buying in its own share.
“Why leading investors and fund managers so shy to give the needed lead to the prospective investors,” leading analyst Hasnain Asghar Ali asks. “There is no limit on the upper-lock as a particular share could be pushed as higher as 10 per cent”.
All the leading shares including National Bank, MCB Bank, Pakistan Petroleum, Pakistan Oilfields, OGDC, Arif Habib Securities and many others are now in the firing range, ensuring massive capital gains, he said.
“What is needed is the conviction to take a risk not that big at the current levels as leading shares, notably MCB Bnak, a Rs400-plus share is available at Rs242 and National Bank at a half price of its stable level of Rs200,” he added.
The chained market may not have many options to meet its daily technical demands as massively mauled investors will play safe until the presidential elections on Sept 6, some floor brokers said.
However, the conflicting reports about some “big changes” in the list of contesting candidates at eleventh hour kept them guessing and could not decide how to react,” the added.
“Though a bit late investors seemed to have started to feel the pinch of price freeze on the Aug 27 level,” said analyst Tabish Hasan. “There are now a loud whispering against the freeze and a call for lifting the floor”.
A sharp decline in the daily turnover figure, lack of general support and the absence of leading investors signal that sluggishness will continue in the absence of strong fund buying, he added.
Trading volume was maintained the week level of about 24m shares but gainers held a modest lead over the losers, with 106 shares holding on to the last level, out of total 209 actives.
National Refinery and National Foods led the list of leading gainers, up by Rs10 and Rs12.83 followed by Sapphire Fibres, Highnoon Lab, Tri-Pak Films, Shell Pakistan, Silver Star Insurance, Royal Bank and IGI Insurance, up by Rs1.25 to Rs7.95. Ferozsons Lab and Unilever Pakistan were prominent among the losers, off by Rs9 and Rs5. ICI Pakistan, Arif Habib Ltd, National Equities, New Jubilee Insurance, Pakistan Petroleum and Ferozsons Lab followed them, off by Rs1.31 to Rs5.
Fauji Fertiliser topped the list of actives, unchanged at Rs22.78 on 3m shares, Bank Al-Falah, lower by 10 paisa at Rs31.25 also on 3m shares, OGDC, unchanged at Rs97.93 on 2m shares, MCB Bank, off by Rs1.28 at Rs242.72 on 0.737m shares, Engro Chemical, up by 20 paisa at Rs182 on 0.464m shares and National Bank, unchanged at Rs93.02 on 0.437m shares.
Other actives were led by Zeal Pak Cement, unchanged at Rs1.16 on 3m shares, NIB Bank, also unchanged at Rs8.47 on 2m shares, Telecard, unchanged at Rs3.80 on 0.949m shares and Nishat Mills, easy by nine paisa at Rs46.71 on 0.591m shares.
FORWARD COUNTER: MCB Bank came in for alternate bouts of buying and selling but ended unchanged at Rs238.27 after hitting the session’s high of Rs239.26 followed by Fauji Fertiliser Bin Qasim, unchanged at Rs22.98 on 0.508m shares and Bank Alfalah also unchanged at Rs31.69 on 0.328m shares.
NIB Bank followed them, easy by two paisa at Rs8.58 on 0.160m shares and Pakistan Petroleum, off 72 paisa at Rs192.77 on 0.140m shares.
DEFAULTER COMPANIES: Trading activity on this counter was relatively slow amid fractional price changes. Unity Modaraba and Norrie Textiles were traded unchanged at 53 paisa and Rs1.42 on 0.179 and 0.142m shares respectively.
DIVIDEND: National Foods, bonus shares at the rate of 500 per cent, Ferozsons Lab, cash 30 per cent, bonus shares 20 per cent, Attock Cement, cash 15 per cent, National Refinery, cash 200 per cent, Universal Insurance, bonus 10 per cent, right shares 15 per cent.