KARACHI, Sept 23: Stocks on Monday staged a broad recovery as investors covered positions at the lower levels buoyed by reports of sell-off of the lot A of state-owned Mutual Funds and disinvestment of another 10 per cent shares of National Bank. The KSE 100-share index rose by 6.13 points at 1,987.21.
Although election uncertainties and the border situation allowed the market to finish with clipped gains, the current official drive to disinvest state owned units has given the needed boost to stock trading, brokers said.
A spate of good dividend news, notably 60, 125 and 133 per cent by Shezan International, Javed Omer Vohra and Treet Corporation was another supporting factor behind the recovery, they added. Shares of leading among them rose steadily.
The sell-off of the management rights of lot-A of ICP Mutual Funds to ABAMCO for Rs.175m and 30 per cent shares of Bank Al-Falah to a Dubai-based group for Rs.620m seem to have given the needed push to stock trading on the perception that the privatization of other mega issues such as PSO and PTCL may not be far off, analysts said.
The shares of expected beneficiaries came in for active support and evoked a good bit of short-covering on the other counters, pushing the KSE 100-share index to finish higher by 6.13 points at 1,987.21.
Reports that the National Bank of Pakistan has applied to the Karachi Stock Exchange to unload another 10 per cent shares to the general public at Rs.21 per shares (face value Rs.10) also aided the underlying sentiment, brokers said.
Annual meeting of the PTCL on Sept and market prediction of 27 per cent dividend on projected profit of Rs.19 also generated a good bit of short-covering in its share at the current lower level.
The developing financial scenario indicates that the market will maintain its upward drive during the next couple of sessions if all goes well with the election schedule, they added.
“Whether or not the current sell-off will neutralise the negative side of the election uncertainties and post-election fall-out is unclear,” some analysts commenting on pre-election financial scenario said adding “the general perception is that the index could settle well above 2,000 barrier.”
Plus signs dominated the list under the lead Artistic Denim, Gatron Industries, Shell Pakistan, HinoPak Motors, Pak-Suzuki Motors, Millat Tractors, Abbott Lab, Ferozsons Lab, Cherat paper, Sitara Chemical and Shezan International after the announcement of 60 per cent dividend, up Rs.2 to 4.20.
Energy shares led the losers, leading among them being Shell Gas, Wyeth Pakistan, International Industries, Pakistan Refinery, Attock Refinery, Uniliver Pakistan and Pakistan Oilfields, off by Rs.2 to 7.15.
Trading volume fell to 96m shares from the previous 109m shares but gainers held a strong lead over the losers at 171 to 106, with 53 shares holding on to the last levels.
PTCL topped the list of most actives ahead of its board meeting, up 15 paisa at Rs.20.10 on 37m shares followed by PSO, higher Rs.1.30 at Rs.190.80 on 15m shares, MCB, firm by 20 paisa at Rs.27.35 on 6m shares, Hub-Power lower 35 paisa at Rs.27.15 also on 6m shares, Sui Northern Gas, up 25 paisa at Rs.15.65 on 5m shares, ICP SEMF, higher 10 paisa at Rs.28.05 on 3m shares.
Other actives were led by Engro Chemical, steady by 15 paisa on 4m shares, Dewan Salman, up 15 paisa on 2m shares, Ibrahim Fibre, higher by 95 paisa also on 2m shares and PICIC Bank, up 65 paisa on 1.289m shares.
FORWARD COUNTER: Speculative issues on the forward counter also showed fractional gains on active support at the lower levels amid active trading. The notable feature was that trading also commenced in the October settlements, which followed the lead of their counterpart.
Hub-Power was actively traded, off 37 paisa at Rs.23.93 on 5.122m shares followed by PTCL, up 10 paisa at Rs.20.10 on 4.718m shares. October contracts were modestly quoted.
PSO rose by Rs.1.35 at Rs.191.25 for the ruling contract but its October delivery suffered a sharp setback of Rs.35.13 at Rs.154.75 on 0.601m shares.
DEFAULTER COMPANIES: Suzuki Motorcycle, which rose by 40 paisa at Rs.4.90 on 28,000 shares was leading among the actives, followed by Schon Modaraba, unchanged at Rs.0.50 on 10,000 shares and Quice Foods, also static at Rs.1.20 on 3,000 shares.
DIVIDENDS: Treet Corporation cash 133 per cent, Javed Omer Vohra 125 per cent, Shezan International 60 per cent, Equity Modaraba 14 per cent, Habib Modaraba 20 per cent, Gatron Industries 30 per cent, Buxly Paints 10 per cent Sitara Energy 30 per cent and Pak Gulf Leasing, right shares 21.43 per cent.