KARACHI, Jan 17: Stocks on Friday ran into weekend profit-selling as investors took profits at the inflated levels but larger fall was averted thanks to presence of strong support at the dips.
Bulls are holding to their positions despite strong bear onslaught prompted by higher carryover business and rates but how long is the question being debated by some analysts.
“We don’t say the price flare-up is unrealistic,” they say “what worries us the question of its sustainability in the coming weeks in the backdrop of badla episode”.
The KSE 100-share index showed a fractional fall of 0.89 points at 2,954.63 as compared to 2,955.52 after early showing of highly erratic movements amid alternate bouts of buying and selling.
However, the marginal decline reflects that bulls are not inclined to loosen their grip on the current price line and are expected to resume moping operations when the trading resumes next week.
“The index level of 3,000 points is now not that far”, says a leading bull “we will decide about the future line of action after hitting the target”.
All eyes are now, therefore, focused on the breach of this crucial level, which bulls have made their prestige point despite bears signals of reversing the trend.
Earlier, the badla rates soared to around 49 per cent but progressively fell to 30 per cent as small investors and some short-term dealers cleared their positions.
Apart from technical selling and stray weekend profit-taking on selected counters, the broader market did not show any signs of further correction owing to the presence of strong support at the dips, dealers said.
Some brokers believe that an improvement in the macroeconomic indicators and steady inflow of institutional buying will not allow the market to fall below the currently established level, technical corrections here and there notwithstanding.
“The most attractive bait of higher dividend and handsome capital gains is still there as most of the mega companies are yet to announce their payouts for the year ended Dec 31, 2002”, analysts said “together with other positive developments, there is a possibility of further increase in the share values of leading shares.”
The interesting feature is that the market has witnessed a major shift in new year portfolio building as a formidable section of investors is shifting them from the overvalued sectors to the undervalued ones, they said.
Leading gainers were led by Universal Leather, Treet Corporation, Pakistan Oilfields, Javed Omer and Pakistan Refinery, which posted fresh gains ranging from Rs5 to Rs10.75.
Losers were led by Attock Refinery, Dawood Hercules, Siemens Pakistan, Parke-Davis and Unilever Pakistan, off Rs5.50 to Rs50.
Traded volume was maintained on the higher side at 486m shares but losers held a modest lead over the gainers at 157 to 150, with 45 shares holding on to the last levels.
Hub-Power led the list of most actives, lower 60 paisa at Rs40.85 on 85m shares, FFC-Jordan Fertilizer, higher by Rs1.50 at Rs12.30 on 67m shares, PTCL, steady by five paisa at Rs25.65 on 66m shares, Sui Northern Gas, off 35 paisa at Rs27.35 on 49m shares and KESC, up by 35 paisa at Rs6.50 on 39m shares.
Other actives were led by Dewan Salman, firm by 10 paisa at Rs17.35 on 23m shares, PSO, higher by 60 paisa on 21m shares, Pakistan Oilfields, up by Rs7 on 20m shares, Pak PTA, up by 35 paisa on 16m shares and Japan Power, higher by 40 paisa on 11m shares.
FORWARD COUNTER: Hub-Power came in for strong selling and fell by 60 paisa at Rs41.25 on 26m shares followed by PTCL, easy 20 paisa at Rs25.75 on 11m shares and Sui Northern Gas, off 40 paisa at Rs27.60 on 8m shares.
PSO on the other hand came in modest support and rose by Rs1.10 at Rs241.10 on 7m shares but both Engro Chemical and Fauji Fertilizer remained under pressure and fell by Rs1.35 and Rs2 at Rs101.20 and Rs88.25 on 2.228m and 1.634m shares respectively.
DEFAULTER COMPANIES: Shares of 15 companies came in for modest two-way activity under the lead of Bela Automotive, up 35 paisa at Rs2.50 on 29,000 shares followed by Suzuki Motorcycles, lower 55 paisa at Rs8.40 on 6,000 shares and Medi Glass, easy 10 paisa at Re1 on 5,000 shares. Others were traded both ways.
BOARD MEETINGS: Trust Leasing, on Jan 18, Jahangir Siddiqui Investment Bank on Jan 20, Dawood Cotton and Dilon on Jan 22, N.P.Spinning, Pangrio Sugar, Mirza Sugar, D.M. Textiles, Pakistan State Oil, and Lawrencepur Woollen on Jan 23, and Resham Textiles, on Jan 24.