KARACHI, March 25: Stocks on Tuesday again turned in a mixed performance as leading investors were not inclined to make fresh commitments apparently following reports from the Gulf war and mostly played safe and did not move out of the safe havens.
Corporate announcements from some of the leading shares were on the higher side of the market and were well-received by the investors. A cash dividend of 60 per cent plus bonus shares of 15 per cent by the directors of International General Insurance (IGI) and 50 per cent bonus shares by the Dawood Hercules were greeted with a price flare-up in their shares.
The KSE 100-share index posted a fractional fall of 0.82 points after being down 30 points at one stage at 2,605, but late covering purchases allowed it finish around 2,633.44.
The fading buying euphoria was also well-reflected in the shrinking daily trading volume as both leading brokers and bargain-hunters are playing safe owing to the war uncertainties. Trading volume shrank further to 127m shares from the last weekend’s 285m shares.
“The investor’s optimism about a swift end of the war appears to be fading each day as reports of stiff resistance to the invading US forces by the Iraqis has changed the scenario,” one broker said, adding “everyone is now redefining his investment priorities basing on the possibilities of a long war.”
Most analysts predict the market could fall from the current inflated levels despite progress as retailers may not like to have a stake even on the blue chip counters because of high financial risks.
“Institutional traders, who took the market by storm after the US attack on Iraq are in the process of revising their investment strategies as the perception of a quick war is losing its relevance to the ground realities each day,” analysts said.
The market may not react with a bang as most of the leading financial institutions have a big stake in it, but it may not be that easy for them to stem the wrought after the bears decide to fight back.
Bulk of the selling was confined to the overvalued shares, notably in the energy sector despite predictions of higher oil prices followed by some other pivotals, but mostly those ruling five to 10-time higher than their face values.
Despite steep rise in local lint prices and expensive imports to make up the local shortfall, textile shares are not influenced by the war euphoria and performed credibly on reports of higher dividend yields from leading among them.
For the second time plus signs managed to maintain a comfortable edge over the losers at 133 to 120, with 55 shares holding on to the last levels, the notably gainers among them being; IGI Insurance after the announcement of 60 per cent cash dividend and 15 per cent bonus shares, up Rs6.80 at Rs97.80.
Other good gainers were led by Bhanero Textiles, Treet Corporation, Rafhan, Parke-Davis and Dawood Hercules, up by Rs7 to Rs11.25. The rise is attributed to lack of floating stock. Javed Omer, Faisal Spinning, Ferozsons and Rafhan Bestfood and several others also showed good gains.
Losers were led by Pakistan Reinsurance Co, Sapphire Textiles, Al-Abid Silk, Nestle MilkPak and Wyeth Pakistan, off Rs1.95 to Rs26, the largest fall being in the last two shares. EFU Life, Pakistan Refinery, Honda Atlas, Siemens Pakistan and Clariant Pakistan also fell by one rupee to Rs1.50.
PTCL again led the list of actives, unchanged at Rs23.60 on 40m shares followed by Sui Northern gas, lower 25 paisa at Rs23.95 on 25m shares, PSO, off Rs1.20 at Rs201.80 on 20m shares, FFC-Jordan Fertiliser lower 10 paisa at Rs11 on 8m shares and Dewan Salman, steady five paisa at Rs14.10 on 4m shares.
Other actives were led by ICI Pakistan, up 85 paisa on 3m shares, Hub-Power, lower 15 paisa also on 3m shares, Pak PTA, easy five paisa on 2.672m shares, MCB, lower five paisa 2m shares and Fauji Fertiliser, higher 50 paisa also on 2m shares.
FORWARD COUNTER: Barring fresh fall of Rs1.50 to Rs1.85 in PSO, all other speculative shares showed fractional either-way price changes amid slow activity. PSO fell by Rs1.85 at Rs202.15 on 7m shares, while PTCL was traded unchanged at Rs23.50 on 4m shares. Sui Northern fell 40 paisa on 1.199m shares and so did Engro Chemical and FFC-Jordan, off modestly.
DEFAULTER COMPANIES: Active trading was witnessed on this counter as shares of over a dozen companies came in for alternate bouts of buying and selling under the lead of Kausar Paints, lower 20 paisa at Rs1.05 on 15,000 shares.
Medi Glass and Allied Motors followed it, up 10 and 90 paisa at Rs0.70 and Rs11, respectively, on 12,000 and 8,000 shares. Ghandhara Industries also came in for active buying and rose 50 paisa at Rs4.50 on 7,000 shares and so did Metropolitan Steel and Quice Foods.
DIVIDEND: International General Insurance (IGI) cash 60 per cent plus bonus shares at the rate of 15 per cent; Dawood Hercules bonus shares at the rate of 50 per cent; Century Insurance bonus shares 20 per cent, cash at the rate of 10 per cent already paid; HinoPak Motors cash 10 per cent; and Singer Pakistan cash 7.5 per cent for the year ended Dec 31, 2002.
BOARD MEETINGS: Reliance Insurance, Highnoon Labs on March 27; Saudi Pak Commercial Bank, Premier Insurance, Ittefaq General Insurance on March 29; EFU Life Assurance, EFU General, Security Investment Bank on March 31; and Kashmir Edible Oil on April 15.