KARACHI, Sept 9: Stocks remained under pressure on Tuesday as investors kept to the sidelines awaiting official word on the extension of the price freeze and the KSE 100-share index floor at the Aug 27 level of 9,144 points.
The KSE 100-share index shed another 16.61 points at 9,279.62 amid light volume of 11m shares.
Although members majority vote was obtained on the issue of extension in KSE board meeting on Monday but official decision was withheld up to Tuesday (Sept 9) owing to roar of the dissenting voices seeking the lifting of the freeze.
However, taking into account the objective political and economic conditions and massive price erosions during the last couple of weeks, it was decided to extend the freeze until next month to save the market from a possible crash, analyst Ahsan Mehanti said.
As a result, the activity remained at low ebb partly because of the freeze and partly to holy month of Ramazan, known for low volumes, he added.
The sentiment was also affected bearishly as a section of investors kept to the sidelines awaiting future financial and economic policy guidelines by President Asif Ali Zardari in his post swearing-in speech later in the evening.
The KSE 30-share index showed a fractional fall of 1.54 points at 10,160.34, but on the other hand the KMI 30-share index rose by 3.86 points at 11,248.56, after having fallen sharply lower since its debut last week.
“The steep decline in the turnover figure to 11m shares indicates that the extension of the price freeze was not welcomed by some of the active members,” analyst Tabish Hasan feels, adding: “The stray alternate bouts of buying and selling remained confined to most of the second-liners, most of which traded fractionally.”
Analyst Ashraf Zakaria said the news that the National Bank will buyback its floating stock of 212 million shares at a price yet to be determined should have triggered a good bit of buying on the banking counter and in its own share, which is currently ruling below Rs100 around Rs93. Its board will meet on Sept 12 to finalise details of the buy-back operation as well as the floor price.
Leading gainers were again led by National Foods and Shell Pakistan, up by Rs6.37 and Rs10.49. They were followed by Royal Bank, Thal Industries, Indus Motors, Pak Elektron, Unilever Pakistan, Tri-Pack Films and Clover Pakistan, up by Rs2 to Rs4.50.
While losers were led by IGI Insurance and Attock Petroleum, off by Rs9.14 and Rs8.05, respectively, followed by Ibrahim Fibre on post-dividend selling, Allied Bank, Service Industries, Al-Ghazi Tractors and Javedan Cement, off by Rs2.13 to Rs5.09.
Trading volume fell to a modest total of 11m shares as compared to previous 48m shares as losers held a modest lead over the gainers at 64 to 37, with 89 shares holding on to the last levels.
NIB Bank again topped the list of actives, easy by five paisa at Rs8.69 on 1.703m shares followed by Engro Chemical, up 56 paisa at Rs181 on 1.439m shares, WorldCall Telecom, static at Rs7.80 on 1.001m shares, Pakistan Container Terminal, unchanged at Rs64.70 on 0.506m shares, Arif Habib Bank, unchanged at R12.05 on 0.440m shares, Bosicor Pakistan, easy by eight paisa at Rs8.70 on 0.378m shares and JS Bank, static at Rs10 on 0.373m shares.
Fauji Fertiliser Company followed them, lower by 75 paisa at Rs100.30 on 0.289m shares, BankIslami Pakistan, steady by three paisa at Rs11.03 on 0.242m shares and Sitara Peroxide, unchanged at Rs27.72 on 0.242m shares.
FORWARD COUNTER: NIB Bank again led the list of actives on this counter, easy by two paisa at Rs8.79 on 0.357m shares, followed by Engro Chemical, up 54 paisa at Rs182.39 on 0.222m shares, Pakistan Petroleum, easy by 44 paisa at Rs191.57 on 0.68m shares and National Refinery, up 48 paisa at Rs209.98 on 0.26m shares.
DEFAULTER COMPANIES: The activity on this counter was slow as prices showed fractional changes amid low volumes. Japan Power and Zeal Pak Cement came in for stray buying at the overnight rates and were held unchanged at Rs4.50 and Rs1.60 on 0.211m and 0.124m shares, respectively.
DIVIDEND: Ibrahim Fibre, cash 15 per cent, Sana Industries, cash 10 per cent, Gadoon Textiles and Constellation Modaraba, both nil for the year ended June 30, 2008.