KARACHI, Dec 1: Stocks on Saturday finished with an extended losses on the blue chip counters, as investors were not inclined to take new positions awaiting some fresh positive news. The KSE 100-share index shed another 3.10 points at 1,355.06 amid light trading.
The chief factor behind the sluggishness was said to be the absence of leading institutional traders who apparently took a technical breather to resume new account buying during the next week.
Trading activity, therefore, remained dull and lacklustre as leading investors kept to the sidelines partly because of weekend considerations and partly to lack of fresh supporting factors.
The KSE 100-share index suffered a fresh modest fall of 3.10 points at 1,355.06 as compared to 1,358.16 on Thursday as leading base shares came in for stray selling under the lead of Hub-Power and ICI Pakistan.
The entire activity appears to be a jobbing affair as investors just covered in part their oversold positions on selected counters as is evident from a light traded volume.
Energy shares, however, performed relatively well under the lead of PSO despite three per cent fortnightly cut in petroleum prices in response to lower world prices.
Stock analysts said the shares of leading oil marketing giant, notably PSO and Shell Pakistan has been under pressure well before the price cut indicating they have the pre-revision information.
“The negative impact of the cut was, therefore, non-event for the oil giants as was reflected by active short-covering in their shares,” they say.
Floor brokers said the current pause is temporary and in a way reflects the absence of strong support from the institutional traders and in their absence day traders and jobbers were not inclined to hold long positions and tried to get out.
However, there is no two opinions about the positive basic fundamentals but when they play their role to pull the market out of the current hesitancy is not clear, they add.
But those including some genuine investors who are working under a long-term investment strategy are not sitting silent and are taking positions on a number of counters, their main choice being low-priced second-liners.
Although most of the declines were fractional but dominated the list under the lead of Wyeth Lab, which remained under pressure and shed another Rs.13.25, making total loss for the week about Rs.35 for no apparent bearish reason.
Other prominent losers were led by Janana De Malucho Textiles, Jahangir Siddiqi & Co, Aventis Pharma, Lever Brothers and BOC Pakistan, which suffered fall ranging from 90 paisa to Rs.3.85.
Arif Habib Securities was top gainer, up Rs.9 on 1,000 shares followed by Pak Reinsurance, higher by Rs.15 and Blessed Textiles, up Rs.2.10. Others to follow were Adamjee Insurance, Faisal Spinning, PSO, Ferozsons Lab, Knoll Pharma and Elite Publishers, rising one rupee to Rs.1.75.
Trading volume fell to 36m shares from the previous 47m shares as losers maintained a fair lead over the gainers at 77 to 55, out of 171 actives.
Hub-Power was actively traded, lower 15 paisa at Rs.19.40 on 14m shares, followed by PTCL, unchanged at Rs.17.75 on 7m shares, PSO, up Rs.1.05 at Rs.99.85 on 3m shares, ICI Pakistan, off 50 paisa at Rs.43.50 on 2m shares and Dewan Salman, easy 15 paisa at Rs.12.90 on 1.335m shares. The selling was attributed to below market expectations bonus shares of 15 per cent by the management of Dewan Salman.
Other actives were led by Adamjee Insurance, higher Rs.1.10 on 1.059m shares, Lucky Cement, off 35 paisa on 0.973m shares, Engro Chemical, steady by five paisa on 0.863m shares, FFC-Jordan Fertiliser, up 15 paisa on 0.781m shares and Japan Power, easy five paisa on 0.710m shares.
FUTURE CONTRACTS: Mixed trend was witnessed on the forward counter where PSO was leading among the gainers, up 75 paisa at Rs.101.00 on 98,000 shares and Dewan Salman, off 30 paisa at Rs.13 on 16,000 shares. Other price changes were fractional either-way. December settlements are now the ruling contracts after the expiry of November contracts.
Bulk of the activity was confined to Hub-Power, off 26 paisa at Rs.17.50 on 1.969m shares followed by PTCL, easy nominally only one paisa at Rs.15.88 on 1.280m shares.
DIVIDEND: Treet Corporation cash 50 per cent, Lucky Cement 7.5 per cent,Pak Leather Crafts 7.5 per cent, Dewan Salman bonus shares 15 per cent, Pakistan House International, five per cent, Dreamworld and Indus Jute both nil.
BOARD MEETINGS: Murree Brewery Company, Second Prudential Modaraba, Third Prudential Modraba on Dec 6, Metropolitan Steel, Bestway Cement on Dec 7, and First Punjab Modaraba on Dec 8.