KARACHI, Feb 11: Stocks on Wednesday failed to sustain the overnight run-up as a section of investors took profits at the inflated levels to meet their immediate financial demands but there were buyers at the dips. The KSE 100-share index fell by 18.02 points at 4,889.92.
Massive cash amounts are tied with the Sui Southern Gas issue and until they are free after the balloting, leading investors may continue feel the pinch of pressure on their liquidity, brokers said.
But some analysts said the sell-off might have been caused by some rethinking on the central bank decision to allow banks to set up brokerage houses as their subsidiary companies and indulge in stock trading.
"The brokerage licences have been confined to certain groups since independence which have almost monopoly on the share business. The entry of the banks in its exclusive domain could well mean anything to it," analysts said.
But some others claim the direct entry of banks into the share business will further boost trading and give the market needed depth as they have the capacity to inject massive idle amounts in selected stocks.
The KSE 100-share index, therefore, early rose to hit the day's peak level of 4,942.00 on active follow-up support but later selling pushed it down to finish lower by 18.02 points at 4,889.92 as compared to 4,908 a day earlier.
"The index appears to be in a consolidation phase as each rise follows a modest dip," says a leading broker, adding "its volatile performance could well prove a launching pad for its onward thrust to the next crucial level of 5,000 points."
There is no apparent stiff resistance from the bears and all the indicators point to a continued run-up to the coveted level possibly during the current month.
Analysts said dividend announcements from some of the leading companies were due during the next week and they are expected to further reinforce the current buying euphoria, pushing the index to the 5,000 figure.
Bulk of the late selling was confined to some leading shares, notably Engro Chemical, National Bank, Hub-Power, Fauji Fertilizer, Dewan Salman, Sui Northern Gas, while auto shares came in for renewed selling followed by rumours that the import of reconditioned cars may be allowed.
Leading losers were again led by Parke-Davis, which shed another Rs21 followed by Packages, Colgate Pakistan, IGI Insurance, Dawood Cotton, Al-Ghazi Tractors, Indus Motors, Dreamworld and National Refinery, off Rs3.30 to Rs6.95.
Prominent gainers included Pakistan Refinery, Shezan International, Aventis Pharma, Shafiq Textiles, Bhanero Textiles and Dawood Hercules, which posted gains ranging from Rs4.10 to Rs7. But largest rise of Rs9.75 and Rs13.10 was recorded in Abbott Lab, Siemens Pakistan and Island Textiles.
Meanwhile, three-day sales of 67m shares of Sui Southern Gas ended today (Wednesday) and reports coming from the banking sector indicate the issue is expected to be heavily oversubscribed.
Trading volume soared to 408m shares from the previous 360m shares, but losers held a fair lead over the gainers at 206 to 176, with 56 shares holding on to the last levels.
Sui Southern Gas, topped the list of actives, unchanged at Rs34.30 on 57m shares followed by OGDCL, also unchanged at Rs53.75 on 52m shares, PTCL, lower 30 paisa at Rs38.95 on 48m shares, Hub-Power, off 45 paisa at Rs39.60 on 30m shares and FF Bin Qasim, up 35 paisa at Rs20.30 on 27m shares.
Other actives were led by Dewan Salman, lower 65 paisa on 20m shares, PSO, higher by Rs1.15 on 17m shares, Maple Leaf Cement, up 50 paisa also on 17m shares, Nishat Mills, higher 35 paisa on 15m shares and D.G. Khan Cement, easy 45 paisa on 13m shares.
FORWARD COUNTER: Hub-Power came in for active selling and fell by 55 paisa at Rs39.60 on 6m shares followed by Pakistan Capital Market Fund, unchanged at Rs11.15 also on 6m shares and PTCL, off 35 paisa at Rs39.10 on 5m shares. FF Bin Qasim on the other hand rose by 30 paisa at Rs20.40 on 5m shares and PSO, up Rs1.35 at Rs288.35 also on 5m shares. All others were modestly traded amid fractional changes.
DEFAULTER COS: Active trading was also witnessed on this counter where Standard Bank came in for active support and rose by 60 paisa at Rs8 on 0.349m shares followed by Industrial Capital Modaraba, easy five paisa at Rs2.30 on 0.146m shares and unity Modaraba, also lower by the same amount at Rs1.50 on 0.139m shares. Some others were also actively traded.
DIVIDEND: Mehr Dastgir Textiles, cash 2.5 per cent.
BOARD MEETINGS: Ittehad Chemicals, Shabbir Tiles, on Feb 16; Bengal Fibre, Pakistan Papersack, Golden Arrow Selected Stock Fund, Dilon, Cherat Papersack, Trust Securities and Brokerage, Lawrencepur Woollen, on Feb 17; Pakistan National Shipping Corporation, on Feb 18; and Meezan Bank on March 4.