KARACHI, Dec 1: Stocks on Wednesday passed through another mixed session as investors played on both sides of the fence awaiting the advent of strong financial support but the underlying sentiment remained uppishly inclined thanks to short-covering in selected shares. The KSE 100-share index shed another 7.29 points at 5,560.50.
Both leading investors and bargain-hunters stayed on the sidelines apparently having an overview of the recent political developments, including signing of the dual-office bill by the acting president.
The KSE 100-share index suffered a fresh modest decline of 7.291 points at 5,560.50 points as compared to 5,567.79 points at day earlier as leading base shares tended further lower on renewed selling.
Apart from selling in leading energy shares followed by official decision to keep petroleum prices unchanged at the retailers' end for the 14th consecutive fortnight, the other moot point was the signing of dual-office bill by the acting president, enabling President Musharraf to hold simultaneously the post of president and army chief.
"The MMA, an alliance of religious parties, along with the ARD has already kicked off an anti-uniform drive at a public meeting in Karachi held last Sunday and vows to force the president to honour his promise of holding one post by Dec 31," analysts said.
"What worries investors on long-term basis are fears of negative fallout of political agitation's against the dual-office bill and its impact on future stock trading," they said. But some others said much will depend on the intensity of the anti-uniform drive followed by a possible political turmoil. But if the agitation turns into violence as is widely speculated, it could be a bad omen for the market, they added.
"The MMA is in a position to demonstrate its massive street power backed by a committed workforce," says a leading broker, adding that "but the current political reconciliation moves initiated by the government, notably release of Asif Zardari after eight years in prison could neutralize the negative fallout of the political polarisation."
On the technical front, a record investment and volume on the badla market appears to be a hanging sword on the heads of investors who fear fresh float from there could work against the underlying sentiment in the coming sessions.
The interesting feature is that investors are taking big stake in the low-priced textile shares amid market talk of higher earnings owing to cheaper lint prices and steady exports. Already some of them have announced higher dividend, including bonus shares.
The market is, therefore, in the consolidation phase and could move either-way depending on the background news, notably from the political front. Unlike the previous weeks, broader market performed well as most of the second-liners managed to finish with extended gains, notably gainers among them being Ahmed Hassan Textiles, Sapphire Textiles, Bhanero Textiles, Mitchell's Farm Fruits, Security Papers, HinoPak Motors and Artistic Denim, up Rs3.25 to Rs12.25.
Losers were led by overvalued shares such as Dawood Hercules, Grays of Cambridge, Zulfiqar Industries, Siemens Pakistan, Shell Pakistan, EFU Life and Treet Corporation, which suffered fall ranging from Rs4.95 to Rs14.
Trading volume fell to 197m shares from the previous 256m shares as gainers held a slight edge over losers at 196 to 189, with 53 shares holding on to the last levels.
Askari Bank led the list of most actives on strong support followed by reports of higher interim earnings, up Rs1.50 at Rs92.90 on 23m shares followed by Sui Northern Gas, easy 40 paisa at Rs56.25 on 14m shares, Bank of Punjab, up 45 paisa at Rs62.40 on 13m shares, D.G. Khan Cement, steady five paisa at Rs52 also on 13m shares, PIAC, higher by 55 paisa at Rs12.75 on 11m shares, OGDC, lower 20 paisa at Rs66.75 on 10m shares and Hub-Power, steady 15 paisa at Rs30.75 also on 10m shares.
Other actives included PICIC Growth Fund, off 40 paisa on 10m shares, National Bank, up 15 paisa on 9m shares and Pakistan Oilfields, off 65 paisa on 7m shares.
FORWARD COUNTER: PPL came again came in for fresh selling and was marked down by 55 paisa at Rs112.05 on 3m shares followed by Hub-Power, up 25 paisa at Rs31 on also on 3m shares and Sui Northern Gas, lower 35 paisa at Rs56.40 on 2.636m shares. PSO, off Rs1.65 at Rs267.85 on 2m shares and Pakistan Oilfields, lower Rs1.10 at Rs212.10 also on 2m shares. Others were fractionally traded.
DEFAULTING COS: Crescent Standard Bank topped the list of actives on this counter, up 15 paisa at Rs10.50 on 1.007m shares followed by Mukhtar Textiles, higher by 85 paisa at Rs6.10 on 0.703m shares and Crescent Spinning, unchanged at Rs4.30 on 0.544m shares. Awan Textiles, Qayyum Textiles, Amazai Textiles and Apex Fabrics were also actively traded on the higher side.
BOARD MEETINGS: Ishaq Textiles on Dec 2; Southern Electric on Dec 3; Zahidjee Textiles and Gadoon Textiles on Dec 6; Shadab Textiles, Sargodha Spinning and Husein Sugar on Dec 7; and Hajra Textiles on Dec 8.