KARACHI, Oct 31: After a higher start on strong speculative buying triggered by reports of two important board meetings, stocks again finished in the minus column as follow-up support turned shy.
The market talk that both the Hubco and PTCL whose directors will meet next week could give, in financial terms, a pleasant surprise to their shareholders prompted strong speculative buying in their shares, pushing them substantially higher earlier in the session but late selling again pushed them modestly lower.
Blue chip sector, however, maintained its upward drive under the lead of Premier Sugar, Ferozsons Lab, on follow-up support in response to 70 per cent cash dividend, Siemens Pakistan and ICI Pakistan, which showed smart rallies.
After opening higher early on reports of the board meetings of Hubco and PTCL on Nov 5 and 8 and expectations of higher payouts, the KSE 100-share index rose by over 10 points but late selling brought it down to finish with an extended decline of 6.30 points at 1,406.05 as compared to 1,412.35.
“If the PTCL and the Hubco are down, the index will follow them because of their 43 weightage in it”, stock analysts at the W.E. Financials said, adding “but the important thing is that the selling is related to consolidation rather than the market’s reluctance to look beyond the 1,425.00 index level”.
They believe normalcy to stock trading will be restored backed by bullish future economic outlook but not before a “substantial consolidation is materialized”. That is perhaps why it did not reacted negatively to the future economic outlook painted by the central bank in its annual report in the wake of a protracted Afghan war.
Stock analysts at the Finex Securities expressed the same view but think basic economic fundamentals have undergone a major change after reopening of the foreign credit lines and a loud whispering about the debt write-offs.
“The market is preparing itself to receive the working results from the two mega issues, which could make or mar the future trading pattern”, says an analyst at Moosani Securities, adding “while the Hubco is expected to come out with a good final of about 30 per cent, the PTCL could spring pleasant surprises on the strength of steep increase in its revenues”.
The current correction is, therefore, expected to add the underlying sentiment rather than halting the market’s upward drive as it has to move further higher in the sessions to come, they believe.
Although minus signs again dominated the list but most of the declines were fractional barring Shell Pakistan, PSO, Sapphire Textiles, Millat Tractors, Knoll and Nestle MilkPak, which suffered fall ranging from Rs.1.50 to Rs.8.00. Balochistan Wheel also attracted post-dividend selling, off Rs.1.15 after the announcement of final cash dividend at the rate of 12.5 per cent. It has already paid an interim of an identical amount.
Advancing shares were led by Kohinoor Weaving, Modern Textiles, Lawrencepur Woollen, Lakson Tobacco, National Refinery, International Industries and Lever Brothers, which rose by Rs.1.25 to Rs.8.00.
Traded volume further shrank to 230 million shares from the previous 241 million shares as losers maintained a fair lead over the gainers at 99 to 70, with 35 shares holding on to the last levels.
Hubco topped the list of most actives, lower 20 paisa at Rs.22.65 on 106m shares followed by PTCL, easy also by the same amount at Rs.18.00 on 83m shares, ICI Pakistan, higher by Rs.4.40 at Rs.53.50 on 14m shares, Sui Northern, firm by 10 paisa at Rs. 11.35 on 8m shares, and PSO, off Rs.1.55 at Rs.111.60 on 4m shares.
Other actives included Engro Chemical, lower 20 paisa on 3.164m shares, MCB, unchanged on 2.389m shares, Fuaji Fertiliser, firm 15 paisa on 1.490m shares, Japan Power, lower 15 paisa on 1.020m shares and Dewan Salman, off 25 paisa on 0.989m shares.
FUTURE CONTRACTS: With the exception of Engro Chemical, which rose by 45 paisa at Rs.55.95 on stray business, all other speculative issues either ended unchanged or fractionally down, major loser among them being PSO, off Rs.1.80 at Rs.108.60 on 45,000 shares.
Hub-Power was actively traded, easy five paisa at Rs.21.65 on 5.765m shares followed by PTCL, easy 10 paisa at Rs.18.20 on 1.654m shares.
DEFAULTER COMPANIES: Alif Textiles and Colony Textiles came in for modest support and were quoted higher by 15 to 25 paisa at Rs.1.00 and 9.00 on 1,500 shares each. Suzuki Motorcycle also rose by 25 paisa at Rs. 1.35 on 500 shares.
DIVIDEND: Imrooz Modaraba, cash 21 per cent, interim at the rate of 25 per cent already paid, Habib Bank Modaraba, cash 14.5 per cent, Balochistan Wheels, final 12.5 per cent, interim of the same amount already paid, Paramount Leasing, cash eight per cent and Safa Textile nil for the years ended June 30,2001.
Oct 31,2001 Market at a glance TONE:easy,total listed 757,actives 204,inactives 553,plus 70,minus 99, unc 35. KSE 100-SHARE INDEX:previous 1,412.35,Wednesday’s 1,406.05,minus 6.30 points.
MARKET CAPITALIZATION: previous Rs.345.006bn,Wednesday’s Rs. 343.430bn,minus Rs.1.576.
TOP TEN: gainers ICI Pakistan Rs.4.40, Premier Sugar 4.00, Siemens Pakistan 4.00,Lakson Tobacco 2.50, Ferozsons Lab 2.40.
LOSERS: Nestle MilkPak Rs.8.00, Millat Tractors 3.00,Knoll Pharma 2.50, Janana Demalucho Textiles 1.75, Sapphire Textiles 1.75.
TOTAL VOLUME: 230.231m shares.
VOLUME LEADERS: Hub-Power 105.615m,PTCL 82.948m,ICI Pakistan 13.903m, Sui Northern Gas 7.960m, PSO 3.730m shares.