KARACHI, April 29: Stocks on Thursday finished weak owing partly to heavy post-dividend profit-selling in some of the blue chips and partly to the absence of leading financial investors.
The KSE 100-share index resumed trading 15 points higher from the previous close and rose further higher on selective support in the cement sector and some other pivotals but the mid-session again witness its retreat from the day's high on late selling.
But heavy post-dividend profit-selling in OGDC and some other leading base shares including Hub-Power halted its recovery and pushed it down to finish with an extended decline of 22.85 points at 5,346.58 as compared to 5,369.43 a day earlier.
Essentially, it was the distinct weakness of the OGDC, which hold 21 per cent weightage in the index which denied it positive close. Dividend news from it and Fauji Fertilizer were in line with the market predictions but both came at a time when investors were worried over some other negative developments.
The market's highly erratic price movements may not be influenced by the predictions of hung parliament after the current Indian elections and feared setback to the current peace moves, some of the leading investors have certainly in mind the negative fallout from across the border, some analysts contend.
"The final Indian election results are still about two weeks away there is a lot of manoeuvring space in between to play safe", says a leading analyst, "bears have made it an excuse to have an upper hand after having received massive battering during the last three months".
The general perception is that the market has already undergone a technical correction after having lost about 300 points or five per cent during the last couple of sessions, and is expected to be back on the rail after the holidays.
"The next Tuesday session will be very crucial for its future direction when trading resumes after three closures but indications are that it may rise from the current lows on the strength of upcoming dividend announcements from some of the leading companies", brokers said.
Unlike previous sessions, advancing shares cut short the strong lead held by the losers as most of the leading shares managed to finish with good gains under the lead of Abbott Lab, Murree Brewery, EFU Life, Atlas Honda, Goodluck Industries, Arif Habib Securities and Shell Gas, which posted gains ranging from Rs4 to Rs15.
Losers were led by Pakistan Refinery, Treet Corporation, Adamjee Insurance, International Industries, Atlas Battery, Javed Omer and Nestle MilkPak, off Rs4.50 to Rs14.50. Dawood Cotton, PNSC, Clariant Pakistan, Al-Ghazi Tractors, HinoPak Motors, Indus Motors, Bata Pakistan and Siemens Pakistan also fell by Rs3 to Rs4.
Trading volume fell to 421.531m shares from the previous 502m shares as losers held a modest lead over the gainers at 177 to 130, with 53 shares holding on to the last levels. OGDC again topped the list of actives, off Rs1.15 at Rs67.55 on 78m shares followed by Lucky Cement, higher by Rs1.30 at Rs38.65 on 49m shares, PTCL, unchanged at Rs43.35 on 46m shares, D.G.Khan Cement, up by Rs1.30 at Rs56.75 on 30m shares and Hub-Power, off 40 paisa at Rs34.60 on 23m shares.
Other actives were led by FF Bin Qasim Fertilizer, up by 55 paisa on 21m shares, MCB, higher by Rs1.15 on 17m shares, Fauji Cement, unchanged also on 17m shares, National Bank, off 40 paisa on 17m shares and Chakwal Cement, up by 40 paisa on 15m shares.
FORWARD COUNTER: PTCL came in for renewed support and rose by 10 paisa at Rs43.35 on 4m shares followed by Hub-Power, lower 30 paisa at Rs34.70 on 2m shares, FF Bin Qasim Fertilizer, up by 55 paisa at Rs21.30 on 2m shares and PSO, higher by Rs1.60 at Rs269.75 on 1.5m shares.
DEFAULTER COS: Trading activity on this counter remained insipid for the second day because of coming holidays and the absence of investors. Some major prices changes were, however, witnessed under the lead of Amin Spinning and Valika Woollen, which rose by Rs1.30 to Rs1.50, at Rs7.80 to 15.50, Allied Motors, Suzuki Motorcycles and Gammon Pakistan, suffered a fall ranging from Rs1.15 to Rs1.60 at Rs22.60, Rs27.70 and Rs31.30 respectively.