Index sheds 86 points: turnover falls to 48m shares
KARACHI, March 9 Trading volume on the share market on Monday fell to low ebb as investors kept to the sidelines awaiting the outcome of brewing storm on the political front after the reported failure of the reconciliation efforts.
The turnover figure fell below the 50m shares mark at 48m shares as fresh selling in the leading base shares pulled down the KSE 100-share index by another 86.08 points at 5,662.02 and so did its junior partner, off 93.56 points at 5,907.80.
The decline was total and covered the entire list as a record number of 415 shares came in for near-panic selling under the lead of leading MNCs, notably Siemens Pakistan, Colgate Pakistan, Lakson Tobacco and Bata Pakistan reminiscent of boom conditions of yesteryears.
A final cash dividend of 10 per cent (15 per cent interim already paid) plus bonus shares of an identical amount and EPS at Rs10.75, by Adamjee Insurance for the last year may be on the lower side considering the size of the company and its operational net work but the important thing is that it came in very bad market conditions.
However, its share value recovered Rs2.48 at 52.11, reflecting positive investor response amid
“The long march to Islamabad on March 16 seems to have, though a bit late, overtaken the capital market driving investor out,” said a leading analyst
Ahsan Mehanti. “Everyone is taking safe positions apparently foreseeing a massive political showdown between the contenders of power.”
Most investors feel the event may not pass without some bad news for the investing public, which could take along with it the current occasional steam out of the market, he added.
But another leading analyst Ashraf Zakaria says investors think twice before making fresh commitments as no one among them has now an appetite to suffer fresh financial losses.
“Withdrawal of fund support perhaps ahead of public holiday on account of Eid-e-Milad on Tuesday was indicative of the fact that even the big market players are not inclined to take even a calculated risk.
As the developing political situation is unfolding itself each session indicates that it may be pretty difficult to keep the current index level, another analyst Hasnain Asghar Ali fears.
Losers again dominated the list under the lead of Rafhan Maize and Wyeth Pakistan, off Rs69 and 100.59, respectively, followed by Fazal Textiles, Lakson Tobacco, KSB Pumps, on post-dividend and bonus shares selling, Shezan International, Atlas Honda, Grays of Cambridge and many others, falling by Rs7.65 to 47.05.
Some leading shares, notably Unilever Pakistan and Nestle Pakistan came in for stray support and were marked up by Rs15.01 and 25, respectively, followed by Gatron Industries, Attock Refinery, Dadex, National Foods, and Tri-Pack Films, up by Rs3.18 to 3.95.
Trading volume fell to a new low in the recent past at 48.058m shares as compared to 69.156m shares at the last weekend as losers held a strong lead over the gainers at 310 to 89, with 16 shares holding on to the last levels.NIB Bank led the list of actives, lower by 26 paisa at Rs4.09 on 4.281m shares, followed by Adamjee Insurance, up by Rs2.48 at 52.11 on 3.344m shares, J.S. & Co, off Rs1.25 at 23.84 on 3.183m shares, OGDC, easy by 97 paisa at 55.55 on 2.091m shares, Pak Start Fund, steady by three paisa at 2.08 on 2.003m shares, and Searle Pakistan, off Rs1.73 at 44.26 on 1.795m shares.
Bank AlFalah followed them, lower by 12 paisa at 10.92 on 1.521m shares, and Arif Habib Securities, off 47 paisa at 21.53 on 1.472m shares.
FORWARD COUNTER Speculative issues also followed the lead of their counterparts in the ready section and fell where changed but without any transaction.
Among them, Allied Bank, Azgard Nine, Bank of Punjab, Fauji Fertiliser and Habib Bank were leading, which suffered fall ranging from 23 paisa to 1.58.
DEFAULTER COS Active two-way trading was witnessed on this counter under the lead of Zeal Pak Cement, easy one paisa at Rs0.31 on 1.500m shares, as some investors took position on this counter to avoid major fall and to balance their position in the ready section as a hedge. Others were traded modestly.
Unlike the previous sessions, some big price changes on the lower side were witnessed in some of them under the lead of Mustehkam Cement, off Rs4.55 at Rs86.45, Metropolitan Steel, followed it, off Rs2.73 at 52.
But some others managed to finish higher under the lead of Automotive Battery, Khyber Tobacco, and Punjab Oils, which were quoted higher by one rupee to 1.92.