KARACHI, May 13: Active short-covering on Monday in the energy sector followed by rumours of an upward revision in the petroleum prices allowed the market to finish on a mixed note, although the undertone remained nervous. The KSE 100-share index ended above the barrier of 1,800 point.
Both PSO and Shell Pakistan followed by some other leading energy shares including Attock Refinery led the market resistance to larger fall but the rally was inconclusive, analysts said.
Strong institutional support toward the close signalled that it is right time for the bulls to re-enter the market, they added. “But selling seems to have lost its negative impact on the price trend.”
The KSE 100-share index was early off 30 points on extended selling by the tired jobbers and bargain-hunters but later heavy short-covering in the PSO and Hub-Power allowed it to finish partially recovered at 1,801.00, up 2.54 points.
“The market seems to have derived its main strength from the credible performance of the PSO and Shell Pakistan on strong buying fuelled by market talk of an upward revision in selling prices of petroleum products during the next couple of days,” stock analysts at the Al-Securities said.
Each fortnight an advisory committee of the oil marketing companies fixes, since the oil business was deregulated some months back, POL prices based on the average international rates during this periods. For the last one month it maintained the prices at the March levels.
Hub-Power, which was massively mauled followed by reports of technical fault in its generator transformer, having negative impact on the operations of its unit 4, swings back in the game on strong support at the lower levels.
However, investors are worried about the law and order situation and developing scenario on the Afghan war front, and how will they behave in the coming sessions is pretty difficult to predict, brokers said.
Leading gainers were led by Clover Foods, Packages, Attock Refinery, PSO, Shell Pakistan, Siemens Pakistan and Wythe Pakistan, which rose by Rs.2 to Rs8.
Other good gainers were led by ICI SEMF, Sigma Leasing, Bestway Cement, Usman Textiles, Exide Pakistan and Al-Abid Silk, up by one rupee to Rs.1.50.
Losses on the other hand were fractional barring BOC Pakistan, Wazir Ali Industries, Aventis Pharmaceuticals, Shafiq Textiles, Javed Omer and Lever Brothers, off one rupee to Rs.3.
Trading volume shrank below the 100m shares mark, reflecting that leading investors are inclined to maintain a status quo at least until the post-suicide bomb attack scare fades.
The total turnover fell to 99m shares from the previous 161m shares as losers maintained a modest lead over the gainers at 128 to 95, with 46 shares holding on to the last levels.
Hub-Power topped the list of actives, up 15 paisa at Rs.24.10 on 41m shares followed by PSO, higher by Rs.3.15 at Rs.155.45 on 14m shares, PTCL, unchanged at Rs.17.60 on 13m shares, KESC, lower 30 paisa at Rs.4.75 on 3m shares and ICI Pakistan, unchanged at Rs.40.35 on 2m shares.
Other actives were led by Sui Northern, easy five paisa on 3m shares, ICI Pakistan, unchanged on 2.287m shares, Ibrahim Fibre, also unchanged on 2.207m shares, National Bank, lower 15 paisa on 1.946m shares and Adamjee Insurance, up 95 paisa on 1.692m shares.
FUTURE CONTRACTS: Heavy speculative buying in PSO featured the trading on this counter as it rose by Rs.2.15 at Rs.155.50 on 3m shares, followed by PTCL, firm by 10 paisa at Rs.17.89 on 2m shares.
Hub-Power, however, proved to be the volume leader, up 15 paisa at Rs.24.20 on 10.298m shares, ICI Pakistan, steady by 10 paisa at Rs.40.80 on 0.982m shares.
DEFAULTER COMPANIES: Barring a large turnover of 87,000 shares at the previous rate of Rs.5 in Ravi Rayon, trading on this counter was dull as shares of only three companies came in for trading.
PROVISIONALLY LISTED: Bosicor Pakistan came in for stray selling and ended lower by Rs.1.50 at Rs.14.15 on 0.384m shares.