KARACHI, Oct 20: The overnight run-up on the stock market slightly slowed down on Wednesday as some of the institutional traders hastened to take profits at the inflated levels but there were buyers at each dip.
A substantial increase in the daily trading volume and market talk of higher interim profits point to a sustained run-up, although a section of leading operators is worried over the developing political scenario in the backdrop of rigid positions taken by the contenders of power on the president's uniform. After a terribly buoyant opening, Karachi stocks failed to sustain the extended run-up as institutional traders indulged in heavy selling in most of the pivotals, notably leading base shares and halted the market upturn.
An idea of the market's early bull-run may well be had from the fact that the KSE 100-share index breached through the barrier of 5,500 at 5,502.31 at one stage but failed to sustain this level owing to late selling in the base shares.
It finally ended with a fractional decline of 1.70 points at 5,465.36 points as compared to 5,467.06 a day earlier owing to relative weakness of OGDC and some other mega issues.
The snap reversal, however, surprised many leading analysts as the market has the reasons to be buoyant on more than one counts including a bait of capital gains, brokers said adding "but the future direction of the market appears to be on the higher side.
Earlier, renewed covering purchases in the mega index shares including OGDC, PPL, PTCL and some others reflect that it could explore new highs in due course despite the heating up of the political scenario.
Board of directors of Engro Chemical Pakistan met on Wednesday and announced a second interim dividend at the rate of 20 per cent making the total for the year to 45 per cent as it had already paid an interim of 25 per cent.
But what could significantly add to market perceptions of higher payouts by some of the leading companies whose board meetings are due during the next couple of sessions will possibly be known by Thursday.
The board meetings of Hub-Power, Fauji Cement and Bank Alfalah and some others due on Thursday and any positive announcements by any one of them could change the market's future direction, analysts said.
Both the leading investors and institutional traders base their future buying strategy on the interim results and so far barring a few exceptions most of the reports are terribly positive.
Some of the leading gainers were led by Attock Refinery, Arid Habib Securities, Pakistan Cables, Haroon Oils, HinoPak Motors, Dawood Hercules and Abbott Lab, which posted fresh gains ranging from Rs4.40 to Rs12. But the largest rise of Rs24.40 was noted in AKD Securities.
Losses on the other hand were fractional barring EFU Life Assurance, Javed Omer, Berger Paints, Unilever Pakistan, Millat Tractors, Atlas Honda, Security Papers, and Ferozsons Lab, off in the range of Rs3.95 to Rs7.95.
Trading volume both in the ready amounted to 259m shares as compared to 215m shares a day earlier, while gainers and losers were about evenly matched.
Fauji Fertilizer Bin Qasim topped the list of actives, up by 55 paisa at Rs21.25 on 31m shares followed by PTCL, up by 25 paisa at Rs40.60 also on 31m shares, D.G.Khan Cement, higher 75 paisa at Rs52.10 on 27m shares, OGDC, off 60 paisa at Rs66.15 on 26m shares, Engro Chemical, up by 40 paisa at Rs99.60 on 16m shares and National Bank, up by 40 paisa at Rs71.60 on 14m shares.
Other actives were led by PSO, higher Rs1.55 on 12m shares, Bosicor Pakistan, up by 45 paisa on 11m shares, Fauji Cement, firm by 25 paisa on 10m shares and Fauji Fertilizer, higher by Rs2.95 after being ex-bonus on 7m shares.
FORWARD COUNTER: PTCL came in for active trading and rose by five paisa at Rs40.75 on 16m shares followed by OGDC, off 75 paisa at Rs66.25 on 13m shares, D.G.Khan Cement, up by 70 paisa at Rs52.10 on 11m shares.
PPL on the other hand came in for renewed selling and was off 95 paisa at Rs121.85 on 9m shares and PSO, up by Rs1.45 at Rs266.70 on 5m shares. Fauji Fertilizer also rose by Rs2.65 at Rs112.95, while Pakistan Oilfields fell by Rs2.70 at Rs204.
DEFAULTER COS: Barring Crescent-Standard Bank and Quice Foods, which rose by 25 and 15 paisa at Rs10.20 and Rs4.35, on 0.293m and 0.156m shares respectively, all others showed fractional changes amid slow trading.
DIVIDEND: Central Insurance, second interim at the rate of 25 per cent, Callmate Telips, interim bonus shares, 7.5 per cent and Engro Chemical, second interim at the rate of Rs2 or 20 per cent.