KARACHI, Aug 25: Stocks on Wednesday resisted fresh decline as selected shares came in for active short-covering at the lower levels and finished partially recovered amid light trading. The KSE 100-share index fell further by 13.01 points at 5,355.22.
But a decisive rally is still awaited as leading investors are still in two minds whether or not to resume covering purchases or allow prices to fall further. However, late portfolio buying at the lower levels on selected counter allowed the market to finish well above the day's lows, although it is too early to predict about the future direction.
"It is pretty difficult to say at this stage that correction is overdone and financial institutions are back in the market", says a leading analyst and predicted "dividend-related support at the dips could re-emerge in a big way any time".
The KSE 100-share index early dipped 35 points lower at 5,333.00 but late covering purchases by some of the leading institutional traders allowed it finish partially recovered, off 13.01 points at 5,355.22.
"News from the carryover market where rates are still on the higher side were not that encouraging and continued to be one of the major destabilizing factors, some of the institutional traders chose to buy at the current lows", analysts said "major fall was thus averted".
A section of investors is also worried over the law and order situation and bomb blasts and think twice before making fresh commitments. "A big float from the carryover market any time, if the weak holders decided to unload long positions, could cause major dents in the prevailing price structure", they fear.
The recent positive political developments seem to have failed to enthuse investors as was reflected by persistent decline during the last couple of sessions or they have lost relevance to the investors, many are now eyeing an expected higher pay out from some of the leading companies, they said.
Board meetings of some of the leading companies, notably Bank of Punjab, are due on Thursday and of MCB, National Bank and some others on Aug 30, and market perception is that they could come out with higher dividends.
Late portfolio buying in cement, fertilizer, bank, insurance and energy sectors and some blue chips allowed the market to finish well above the day's lowest level. Leading gainers were led by Nestle Milk Pak, Clover Pakistan, Pakistan Engineering, Murree Brewery and Pioneer Cement (right shares) and Gatron Industries, up by Rs5 to Rs12.20.
They were followed by Javed Omer, Arif Habib Securities, Ghandhara Diesel, Atlas Battery, Otsuka Pakistan and Sitara Chemical, up by Rs3 to Rs4. Losers were led by National Foods, Abbott Lab, Pakistan Cables, National Refinery, Lakson Tobacco and Shell Pakistan (LPG), off Rs4 to Rs20. Other notable losers included Shell Pakistan, Pakistan Services, Security Papers, Century Papers and BOC Pakistan, off Rs2.75 to Rs3.70.
Trading volume was maintained at the previous level of 159m shares as losers held a modest lead over the gainers at 158 to 144, with 33 shares holding on to the last levels.
National Bank topped the list of actives, up by 55 paisa at Rs71.10 on 20m shares followed by D.G.Khan Cement, higher by 40 paisa at Rs57 on 18m shares, OGDC, lower 35 paisa at Rs65.25 on 17m shares, Bank of Punjab, off 50 paisa at Rs66.50 on 12m shares, Fauji Fertilizer Bin Qasim, up by 25 paisa at Rs21.85 on 11m shares, Fauji Cement, firm by 10 paisa at Rs16.05 and PTCL, lower five paisa at Rs42 on 6m shares.
Other actives included Lucky Cement, up by 45 paisa on 5m shares, Pioneer Cement (right shares), higher by 45 paisa also on 5m shares and MCB, lower 35 paisa on 5m shares.
FORWARD COUNTER: Pakistan Petroleum came in for renewed selling and fell by 55 paisa at Rs105.40 on 15m shares followed by PTCL, unchanged at Rs42.25 on 3m shares, OGDC, lower 25 paisa at Rs65.35 on 2m shares, National Bank, higher 26 paisa at Rs71.40 on 2m shares and D.G.Khan Cement, up by Rs1.09 at Rs57.09 on 1m shares.
Among the notable losers, PSO was leading in both the settlements, while others showed fractional changes.
DEFAULTER COS: Crescent-Standard Bank again led the actives, up by five paisa at Rs11.25 on 0.156m shares, while all others were modestly traded.
DIVIDEND: Shell Gas LPG, final cash 40 per cent, total together with interim of 60 per cent to 110 per cent, Central Insurance, interim at the rate of 25 per cent.