KARACHI, June 12: Stocks on Wednesday suffered fresh pruning on the blue chip counters, but bears failed to tilt the balance in their favour thanks to the presence of support at the dips. The KSE 100-share index shed another 4.15 points at 1,785.04.
The market’s chief worry appears to be conflicting reports about the current peace initiative by the US, but not very encouraging statements from the top about the standoff did not allow investors to plan on long-term basis.
“War or no was is a question again being debated in the trading hall after fading hopes of some positive developments,” says a member of the KSE, adding “after rising by 100 points or six per cent on Monday, the market has already demonstrated its inherent strength and its response to peace move.”
Institutional support was evident on some of the blue chip counters, notably Engro Chemical and PTCL, renewed heavy selling in Hub-Power and some other pivotals did not allow the market to shed its current hesitancy.
What seems to have taken steam out of the market were comments from president Bush and his visiting defence secretary that there is “no change in the ground situation in the Indo-Pak standoff”.
“The talk of some easing in the high tension after reopening the Indian space to Pakistani civilian aircraft sans landing facilities failed to convince investors after initial positive reaction,” brokers said. The general perception is that the market will follow the line of peace talks as the prevailing military standoff is its major worry and until tension eases its performance may remain volatile, they said.
However, they predicted that the pre-budget speculative buying is just around, though on selected counters and is expected to generate a short-term optimism as the new budget is billed as investor-friendly despite being aired in a difficult time.
“But much will depend on the outcome of US defence secretary’s visit as a peace broker and if he succeeds in breaking the thaw, the market will immediately emit bullish sparks,” says a leading stock analyst.
Most of the either-way price changes were extremely narrow and reflected a near-status quo between the bulls and beers to maintain the current levels.
However, some of the shares managed to finish modestly higher, leading among them being KASB & Co, Gulistan Spinning, Nefees Cotton, Suraj Cotton, Engro Chemical and Lever Brothers, rising by Rs1.40 to Rs1.90. Losers were led by Treet Corporation, Nestle MilkPak, Pak Reinsurance and Fateh Textiles, which suffered fall ranging from Rs1.65 to Rs9.
Trading volume fell to 123m shares from the previous 162m shares as losers maintained a fair lead over the gainers at 126 to 107, with 68 shares holding on to the last levels.
The most active list was topped by Hub-Power, easy 20 paisa at Rs23.80 on 40m shares followed by PTCL, lower 15 paisa at Rs17.60 on 38m shares, Engro Chemical, higher Rs1.05 at Rs62.80 on 6m shares, PSO, lower 55 paisa at Rs142.35 on 6m shares, National Bank, up 25 paisa at Rs19.75 also on 6m shares.
Other actives were led by ICI Pakistan, up 75 paisa on 4m shares, Telecard, higher 70 paisa on 3m shares, Adamjee Insurance, lower 15 paisa also on 3m shares, FFC-Jordan Fertilizer, steady by five paisa on 2m shares and MCB, firm 15 paisa also on 2m shares.
FUTURE CONTRACTS: Forward counter showed mixed trend amid alternate bouts of buying and selling. While PTCL and Engro Chemical were quoted unchanged and higher by Rs1.20 at Rs17.80 and Rs63 on 4.270m and 0.743m shares, respectively, Hub-Power and PSO, other most actives, fell by one rupee and 15 paisa at Rs143.45 and Rs23.95 on 4.143m and 8.752m shares, respectively. Others ended mixed amid modest activity.
DEFAULTER COMPANIES: Shares of a dozen companies came in for modest activity under the lead of Allied Motors, up 10 paisa at Rs10.10 on 6,500 shares, followed by Suzuki Motorcycle, firm by five paisa at Rs4.85 on 6,000 shares and Mehran Jute, easy 10 paisa at Re1 on 5,000 shares.