KARACHI, April 13: Stocks on Thursday averted a major post-carnage shakeout as some of the leading institutional traders moved in and made active covering purchases on oil and bank counters but the underlying sentiment was terribly nervous. The KSE 100-share index consolidated well above the crucial level at 12,061, up 68.50 points.
But the near-term outlook appears to be a bit uncertain in the wake of prevailing tension and investors would think twice before opting for fresh portfolio buying.
After initial massive fall of 175 points in the backdrop of Tuesday’s carnage, the KSE 100-share index managed to post fresh rise of 68.50 at 12,060.73 points on late support on the leading base shares.
The underlying sentiment was, however, terribly nervous on the perception that the current support could leave the market any time, leaving behind a large list of causalities even on Friday, some brokers fear.
“I think the Tuesday’s suicide attack, wiping out all the leading members of a religious party along with four dozen others that too on an Eid Milad-un-Nabi’s congregation, is not that a simple matter. It could have some serious political implications in the sessions to come,” says a leading stock analyst.
But some others predict higher quarterly payouts due during the next couple of weeks could keep investors in a positive mood and ruled out the possibility of any major shakeout.
Although the broader market stayed weak, some of the index heavyweights on the oil counter, notably OGDC, Pakistan Oilfields and Pakistan Petroleum came in for active local support at falling prices after some foreign investors unloaded in part their long positions in them.
“There is a scare among the foreign investors on the developing law and order situation, but leading among them awaited the outcome of the inquiry initiated by the government 1to pinpoint the suicide bombers,” analysts said.
But some others said they had a big stake in the market though on selected counters and think twice before hasty unloading and that could save the market from an impending crash.
However, negative fallout of city killings was partly eased by the KSE closure on Wednesday and partly due to some improvement in the law and order situation. Some of the major market and shopping centres, however, remained closed in response to a three-day mourning call by the religious parties.
PTCL responded positively to reports of taking over of the administrative control by Dubai-based Etisalat but finished well below the day’s peak of Rs68.35.
Prominent gainers were led by Treet Corporate and Siemens Pakistan, up Rs16.10 and Rs62.50, respectively, followed by Attock Cement, Artistic Denim, Gatron Industries, Indus Motors, Packages, Bata Pakistan, EFU Life, EFU Insurance General, Pakistan Oilfields and Suzuki Motors, which posted gains ranging from Rs6.20 to Rs15.15.
Leading losers were led by Shell Gas and Wyeth Pakistan, off Rs14.35 and Rs45, respectively. Others included Dawood Hercules, Rafhan Best Foods, Nationl Refinery, Clariant Pakistan, Arif Habib Securities, and Shell Pakistan, which suffered fall of Rs5.10 to Rs12.
Trading volume fell to 350m shares from the previous 380m shares as losers held at modest lead over gainers at 179 to 166, with 26 shares holding on to the last levels.
The most active list was topped by OGDC, up one rupee at Rs161.25 on 36m shares, Fauji Cement, firm by 45 paisa at Rs27.30 also on 35m shares, MCB, lower Rs1.15 at Rs258.80 on 33m shares, PTCL, steady by 15 paisa at Rs68 on 29m shares, Pakistan Oilfields, higher by Rs15.15 on rumours of interim stock dividend at Rs670.15 on 22m shares, Askari Bank, up Rs5.45 at Rs114.60 on 12m shares and Pakistan Petroleum, up Rs1.85 at Rs273.90 on 8m shares.
Other actives included Lucky Cement, up 90 paisa on 22m shares, Pakistan Cement, firm by 30 paisa on 15m shares, and Nimir Chemicals, up 35 paisa on 13m shares.
FORWARD COUNTER: OGDC also led the list of actives on the cleared list, up 75 paisa at Rs161.80 on 23m shares, followed by National Bank, lower one rupee at Rs259 on 13m shares, MCB, easy 80 paisa at Rs260.10 on 12m shares.
Other actives were led by Pakistan Oilfields, sharply higher by Rs14.30 at Rs674.55 on 11m shares and Lucky Cement, easy 15 paisa at Rs130.20 on 10m shares. Others were modestly traded but on the higher side.
DEFAULTER COS: Service Industries and Dandot Cement came in for active support and rose by one rupee each at Rs3.80 and Rs13.50 on 0.142m and 0.511m shares, respectively.
BOARD MEETINGS: Fauji Cement, Attock Cement, National Equities, Metropolitan Bank, Pakistan Papers Products, Universal Leasing, Gillette Pakistan on April 17; Equity Modaraba, Imrooz Modaraba, Alas Fund, Atlas Income Fund, Atlas Stock Market Fund on April 18; Pakistan Oilfields, Lakson Tobacco on April 19; Kota Addu Power Co, Attock Refinery on April 20; Orix Leasing on April 21; Shell
