KARACHI, Oct 10: Stocks on Wednesday remained in the tight grip of rumour-mongers after opening on a firm note but finished mixed on subsequent alternate bouts of buying and selling amid wide either-way swings. The KSE 100-share index shed 4.55 points at 1,168.98 as turnover figure swelled to 196 million shares.
The opening was in line with the general market perceptions about the revival of economy and its technically oversold position and initial run-up thanks to active follow-up support demonstrated that the tempo of recovery could be sustained at least during the current week.
But those who are not inclined to lose their grip on the trading pattern coined a number of rumours to halt the market’s upward journey. The rumours, which also included house arrests and some fresh top changes in the ruling elite created panic-like conditions as was reflected by violent either-way price movements.
An idea of the market’s volatility may well be had from the fact that the KSE 100-share index opened with an extended gain of four points and steadily rose further to breach through the barrier of 1,200 points. Later rumour-mongers took control of the market and tilted the balance in their favour after circulating negative rumours from Islamabad.
The index ended with a net fall of 4.55 points at 1,168.98 as compared to 1,173.53 a day earlier as leading base shares reacted in unison under the lead of PTCL, Hubco, PSO and Fauji Fertilizer.
As the spate of rumours kept pouring in different modes, the market failed to maintain its overnight firm posture as bargain-hunters and speculative trader tried to get out of the market after cashing in on the available margin of profits.
“It is all rubbish and appears to be the work of anti-market forces to keep control on the price lines”, says an analyst commenting on the retreat of the market from the overnight highs. “Rumour-mongers do play such game but the important thing is the investor confidence in the bullish fundamentals”.
“I don’t think there is a truth in any of the rumours,” another analyst said, adding “the later events indicate all were inspired”.
The day’s highlight was provided by a massive activity in the PTCL, which finally ended lower by 10 paisa on 105 million shares.
Price changes were mostly fractional but selling on the blue chip counters pushed their prices sharply lower. Prominent losers among them being PSO, Pakistan Oilfields, ICI Pakistan, Engro Chemical, Wah Noble Chemicals and Knoll Pharma, which suffered fall ranging from Rs.1.40 to Rs.2.35.
Some of the leading shares, however, did not follow the market’s general trend and finished with fresh gains under the lead of Shell Pakistan, Lever Brothers, Pak Resource Insurance, Central Insurance and Nestle MilkPak, rising by Rs.3.00 to Rs.13.00.
Orix Leasing came in for renewed support owing to a good payout, 25 per cent cash and 20 per cent bonus and Bhanero Textiles were others among the leading gainers, up one rupee to Rs.1.25.
Trading volume rose further to 196 million shares from the previous 167 million shares as gainers held a modest lead over the losers at 74 to 56, out of 169 actives. The increase in turnover was because of hectic two-way activity amid alternate bouts of buying and selling.
The most active list was again topped by PTCL, lower 10 paisa at Rs.14.80 on 105 million shares followed by Hub-Power, easy five paisa at Rs.14.20 on 52 million shares, PSO, off Rs.1.40 at Rs.104.40 on 14 million shares, Engro Chemical, down Rs.1.95 at Rs.46.75 on 4 million shares and Sui Northern Gas, lower 25 paisa at 7.90 also on 4 million shares.
Other actives were led by Fauji Fertilizer, lower 30 paisa on 3.321 million shares, Dewan Salman, off 60 paisa on 1.659 million shares, Adamjee Insurance, lower one rupee on 1.581 million shares, MCB, easy 30 paisa on 1.553 million shares and WorldCall Payphones, up 15 paisa on 1.280 million shares.
FUTURE CONTRACTS: Speculative issues on the forward counters showed firm trend as out of 12 shares, which came in for trading nine rose, while only three fell.
The biggest rise was noted in PTCL, up Rs.105 at 15.50 on 0.925 million shares followed by Hub-Power, higher one rupee at Rs.15.00 on 0.732 million shares. Sui Northern was traded lower by 15 paisa at Rs.8.05 on 0.476 million shares. Others were modestly traded.
DEFAULTER COMPANIES: Gammon Pakistan and Hydery Construction came in for active support at the previous rates and ended unchanged at Rs.11.50 and 0.85 on 3,000 and 2,000 shares each.
DIVIDEND: Merit Packaging cash 20 per cent for the year ended June 30, 2001.
BOARD MEETINGS: PNSC on Oct 11, Shell Gas LPG Pakistan Oct 17, and Crescent Leasing on Oct 22.