KARACHI, Nov 24: Stocks on Saturday shrugged off the previous hesitancy as reports of approval of the Hubco’s 22 per cent final dividend by its foreign lenders triggered active short-covering in the pivotals at the lower levels.
Although the KSE 100-share index managed to show a modest recovery and the trading volume almost doubled from the previous meagre total, price movements were extremely narrow, reflecting the absence of leading buyers including the institutional traders.
The KSE 100-share managed to recover 5.24 points at 1,358.82 as compared to 1,353.58 on Thursday as all the leading base shares ended modestly higher on modest support.
The Hubco lenders approval followed by an earlier controversy about the fake fax message to the KSE on last Tuesday, indicating that they have already given their consent. The KSE probe on the issue to name the guilty is being conducted by an officially set up committee as it has jolted the market during the last two days.
Whatever the outcome of probe, one thing appears certain that the rules of the game from now onward will be strictly adhered to as the chairman of the Securities & Exchange Commission of Pakistan, the apex regulatory of country’s bourses has taken a serious notice of this forged message to manipulate share value of Hubco. It did rise to Rs.20.25 after the news of dividend approval reached the market.
The Hubco share, trading in which was suspended on Thursday to forestall panic selling, resumed at Rs19.80, well above the pre-suspension rate but this level could not be sustained as a section of investors was still doubted the dividend approval news.
But those who were convinced that the approval of the lenders was not fake made active covering purchases at the lower levels, although there was no change in its share value.
Stock analysts said the long-term outlook appears bullish as much has changed on the economic front, specially in the backdrop of steep rise in forex reserves to well over $4 billion and steady inflow of foreign aid.
They expect the market will resume normal trading activity when it reopens on next Monday as one of its major irritant in the shape of Hubco episode has been removed.
Price movements were again fractional, reflecting the absence of aggressive buying from any quarter. However, some leading shares managed to finish with good gains under the lead of New Jubilee Insurance, Shell Pakistan, Fazal Cloth, Shadman Cotton, PSO and Lever Brothers, which rose by one rupee to Rs8. But the largest gain of Rs16 was noted in Rafhan Maize Products at Rs325 on 500 shares but for no apparent bullish factor.
Losing shares were again led by Colgate Pakistan, which came in for renewed selling and shed another Rs4. Over the last couple of sessions it has lost about Rs18 on selling for no apparent bearish reasons, dealers said.
Other prominent losers were led by Pakistan Oilfields, Glaxo-Wellcome Pakistan and Millat Tractors, falling by one rupee to Rs2.
Trading volume rose from the previous low level of 24 million shares to 44 million shares as gainers forced a modest edge over the losers at 75 to 57, out of 172 actives, with 40 holding on to the last levels.
Hubco led the list of actives, unchanged at Rs19.45 on 16m shares, followed by PTCL, up five paisa at Rs17.70 on 9m shares, D.G. Khan Cement, higher 35 paisa at Rs6.95 on 5m shares, ICI Pakistan, up 25 paisa at Rs44.85 on 3m shares and Engro Chemical, higher 40 paisa at Rs54.80 on 2m shares.
PSO led the list of other actives, up Rs1.35 on 1.927m shares, WorldCall Payphones, off 55 paisa on 1.094m shares, MCB, up 20 paisa on 0.907m shares, Japan Power, unchanged on 0.859m shares and Sui Northern, unchanged on 0.799m shares.
FUTURE CONTRACTS: Forward shares also followed the lead of the ready counter and rose by five 55 paisa for all, leading gainer among them being PSO, which rose by Rs1.25 at Rs95 on 89,500 shares.
Hub-Power proved to be the most active scrip, firm by five paisa at Rs19.55 on 0.781m shares, followed by PTCL, steady also by the same amount at Rs17.70 on 0.262m shares.
DEFAULTER COMPANIES: Allied Motors came in for strong buying at the previous rate of Rs3 on 32,000 shares, followed Suzuki Motorcycles, lower five paisa at Rs1.25 on 11,500 shares and Crescent Spinning, up 25 paisa at Rs3 on 1,000 shares.
DIVIDEND: Rupali Polyester cash 40 per cent, United Distributors 10 per cent, Dyno Pakistan 15 per cent, Pakistan Industrial Leasing Corporation 10 per cent, Searle Pakistan 10 per cent, Modaraba al-Mali 11 per cent, Modaraba al-Tjarah and Pak Fibre Industries, both nil for the year ended June 30, 2001.
BOARD MEETINGS: First Providence Modaraba on Nov 27, Zulfiqar Industries, First Fidelity Leasing Modaraba and Fidelity Investment Bank on Nov 28, and D.G. Khan Cement on Nov 29.