KARACHI, Sept 20: Share market on Wednesday staged a broad recovery on active covering purchases aided by a combination of positive news, notably one month’s extension in the facility of in-house Badla financing.
Although buying was strong on selected counters, sellers held on to their positions anticipating fresh rise in share values on follow-up support at the attractively lower levels.
The market’s buoyant mood was well-reflected in the KSE 100-share index, which breached through the barrier of 10,000 points on active support led by MCB amid rumours of foreign buying in it ahead of listing of its GDR on the London Stock Exchange.
The extension in in-house financing has, apparently, played the role of a major market rescuer which has been in search of an instant stimulant for the last couple of weeks in falling volumes and investor trading interest.
It was, however, not only positive news which lured investors back in the market but some other contributory factors notably higher dividends and optimism ahead of President Musharraf’s meeting with Bush.
The KSE 100-share index recovered another 123.72 points crossing the 10,000-level at 10,032.57 points as leading base shares finished with an extended gain. The 30-share index also rose by 174.26 points at 12,480.00 as compared to previous 12,305.74.
Bank and oil shares virtually raced toward their pre-reaction levels on strong short-covering at lower levels and evoked a lot of fresh buying on other counters.
Another positive factor was the KSE announcement that short-selling would not be allowed in the future October settlements. It has more than once caused the market crash as investors could not square their outstanding positions for various reasons, brokers said.
“It is a pre-Ramazan boost to normalise trading on the share market,” stock analyst Ashraf Zakria said, adding “positive outcome of the president’s meeting with his US counterpart could reinforce the investor perception of a political stability”.
Some said the next two sessions could be more rewarding both in terms of capital gains and normal volumes but leading analysts say there could be 30 per cent decline in the daily activity in the absence of speculative trading.
There may be bullish flutters here and there based on the incoming board meetings but the general trend is expected to remain sluggish.
Among the prominent gainers, Packages and Wyeth Pakistan were leading, up by Rs10.05 and Rs42. Other gainers included Union Bank, National Bank, Arif Habib Securities, Pakistan Oilfields, Ferozsons Lab, Clover Pakistan and Pakistan Engineering, which rose by Rs4 to Rs6.05.
Losers were led by Nestle
Pakistan and Unilever Pakistan, off Rs25 and Rs47 respectively followed by Atlas Honda, KSB Pumps, National Foods, Pak-Suzuki Motors and Millat Tractors, off Rs3.50 to Rs14.50.
Trading volume rose to 119m shares as compared to 76m shares a day earlier as gainers held at strong lead over the losers at 166 to 106, with 38 shares holding on to the last levels.
MCB led the list of actives, up by Rs9.10 at Rs239.90 on 22m shares, National Bank, higher Rs5.85 at Rs233.45 on 19m shares, PICIC, firm by Re1 at Rs69.15 on 10m shares and Pakistan Petroleum, higher by Rs3.70 at Rs225.70 on 9m shares.
D.G.Khan Cement, steady by 45 paisa at Rs95.55 on 7m shares, Callmate Telips, off Re1 at Rs43.05 on 4m shares and Pakistan Oilfields, higher by Rs4 at Rs323 also on 4m shares.
Other actives included Crescent Commercial Bank, up by Re1 on 4m shares, Bank Alfalah, firm by 50 paisa on 3m shares and Fauji Cement, up by 35 paisa also on 3m shares.
FORWARD COUNTER: MCB also led the list of actives on the cleared list, up by Rs9 at Rs240.50 on 5m shares followed by National Bank, higher by Rs5.45 at Rs233.95 on 4m shares and Pakistan Petroleum, up by Rs3.75 at Rs226.30 on 3m shares.
PICIC followed them, up by Rs1.10 at Rs69.40 on 3m shares and OGDC, higher by Rs2.15 at Rs123.35 also on 3m shares. Others were modestly traded but mostly on the higher side.
DEFAULTER COS: Unity Modaraba and Norrie Textiles came in for active selling and fell by 10 and 80 paisa at 55 paisa and Rs1.35 on 1.492m and 2.151m shares respectively.
Crescent Standard Modaraba fell by 15 paisa at Rs0.65 and Crescent Standard Bank unchanged at Rs2.50 on 0.117m and 0.292m shares respectively. Quice Foods on the other hand rose by 55 paisa at Rs3.50 on 0.236m shares.
DIVIDEND: Standard Chartered Modaraba, cash 10 per cent, 10 per cent bonus shares, Agriautos, cash 70 per cent, Allwin Engineering, 10 per cent, Imrooz Modaraba, cash 52 per cent, KASB Bank, right shares 32 per cent, Pak-Gulf Leasing, Al-Abbas Cement and First Tri-Star Modaraba, all nil.
