KARACHI, Oct 21: Stocks on Tuesday lacked normal trading interest as investors were still in two minds about the financial interpretation of the State Bank’s market support package and did not make fresh commitments even on the terribly low-priced blue chips.
The big question being debated among the leading analysts is that whether or not the bourse may regain its status being the best performing Asian market.
“Injection of massive amounts of funds may not be the only solution to the current impasse,” they said, adding “its future direction is essentially linked to how the shattered confidence of investors, who have already lost $40 billion in the bargain since the recession started, is restored”.
Stray covering purchases were, however, noted on some of the undervalued shares, but the KSE 100-share index owed its relative strength to a credible performance of Pakistan Services and Pak Datacom, which pushed it higher by 2.15 points at 9,186.90 on 0.238m shares.
The SBP support package will certainly bailout some of the massively leveraged brokers exposed to some problems including margin calls after coveting their outstanding positions to term finance facility for one year, but analysts are still divided over the liquidity problem.
“Investors seem to be eyeing the post-floor market where they will be free to buy shares at their pre-determined rates,” said a leading analyst.
“Some fresh pruning may be inevitable after the resumption of normal activity,” he added.
Most analysts predict there could be fresh fall in the KSE 100-share index after the floor is removed, but much will depend on the support by the official funds and the banks to pick up the float at the lower levels.
“The bulk of the activity again remained confined to the off-the-floor transactions where 60m shares were traded on Monday at a discount ranging from 15 to 20 per cent,” analysts said.
There is a general perception that the post-floor market is expected to trade in line with the off-the-floor transactions and it could perform well depending on the buying support at the dips at least in the blue chips, they added.
Most of the alternate bouts of buying and selling again remained confined to low-priced shares barring Pakistan Services, which again came in for active support and rose sharply higher by Rs18 followed by Pak Datacom, which posted a rise of Rs2.20.
UDL Modaraba, Al-Zamin Leasing, Fidelity Leasing, Sitara Energy and Azam Textiles, followed them, which also rose by eight to 60 paisa.
National Foods and Sapphire Fibres were among the prominent losers, which fell by Rs2.79 and Rs10.45 respectively followed by Al-Noor Modaraba, English Leasing and Kohinoor Mills, off by 75 paisa and Re1.
Trading volume showed a modest rise at 0.238m shares as gainers held a modest lead over the losers at nine to seven, with 27 shares holding on the last levels.
UTP Large Fund led the list of actives, static at Rs5.50 on 0.148m shares followed UDL Modaraba, up by eight paisa at Rs4.43 on 0.20m shares, Mirza Sugar, static at Rs1.80 on 0.18m shares, Gharibwal Cement, lower by 10 paisa at Rs17.90 on 8,000 shares, Dewan Salman, unchanged at Rs2.94 on 5,000 shares, Attock Refinery, unchanged at Rs140.90 on 4,000 shares and Pak Datacom, higher by Rs2.20 at Rs46.30 on 3,400 shares.
Pakistan Commercial Leasing followed them, unchanged at Rs0.70 on 2,500 shares, Al-Zamin Leasing, up nine paisa at Rs2.10 also on 2,500 shares and Pakistan Oilfields, static at Rs243.50 on 2,400 shares.
DEFAULTER COMPANIES: National Asset Leasing came in for active support and rose by 19 paisa at Rs0.60 on 1,500 shares followed by Latif Jute, higher by 15 paisa at Rs7.25 on 500 shares, while Nazir Cotton and Zeal Pak Cement were held unchanged at Rs0.70 and Rs1.16 on 500 and 1,000 shares, respectively.
BONUS SHARES: Meezan Bank, 8.6 per cent, United Growth & Income Fund, 3.45 per cent, United Money Market Fund, 3.41 per cent, AKD Income Fund 1.50 per cent and Pakistan Engineering, nil.
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Market at a glance
TONE:steady,total listed 656,actives 43,inactives 613,plus nine,minus seven,unc 27
KSE 100-SHARE INDEX:previous 9,184.75,Tuesday’s 9,186.90,plus 2.15 points
MARKET CAPITAL;previous Rs.2,838.109bn,Tuesday’s 2,837.311bn,minus 798m
KSE 30-SHARE INDEX:previous 10,042.85,Tuesday’s 10,042.85,nil
KMI 30-SHARE INDEX;previous 11,224.18,Tuesday’s 11.224.18,nil
TOP TEN:gainers Pakistan Services Rs.18.00,Pak Datacom 2.20,Azam Textiles 060,Sitara Energey 0.50,Fidelity Leasing 0.10
LOSERS:Sapphire Fibres Rs.10.45, National Foods 2.79,Kohinoor Mills 1.00,English Leasing 0.75,Southern Electric 0.15.
TOTAL VOLUME:0.238m shares
VOLUME LEADERS: UTP Large Fund 0.148m,UDL Modaraba 0.020,Mirza Sugar 0.018m,Gharbwal Cement 0.08m, Dewan Salman 0.05m shares