960411

Blue chips lead

modest recovery

RECORDER REPORT

KARACHI: Selective institutional support followed by short covering and the improvement in pivotals - PTC and Hub Power, Fauji Fertilizer and Lucky Cement - pushed the index up by 6.39 points on the week-end session of Karachi Stock Exchange on Thursday.

Ali Asghar, of Fortune Securities, said that there was selective buying from institutional investors in both speculative and blue chip stocks. The index found some support at this point and it was not likely to fall below the 1540 level. It seemed that the market is waiting anxiously for some good news or fresh inflow of funds before making a big leap upward. He expected the index to be slightly positive on Sunday.

There was a modest recovery in the share prices because of short covering at every dip. However, the interest was still confined to choice scrips, which could be gauged from the turnover recorded in PTC and Hub Power. Out of the total volume of 42 million shares, the two accounted for 35 million shares.

The feedback from the political or economic fronts was not encouraging and the statement of Minister of State for Finance made several investors jittery. He said that a number of foreign investors, who had made contacts with the government were not willing to invest in Karachi because of peculiar conditions. However, the government was encouraging them to come to the city for business.

The volume on Thursday amounted to 42.259 million shares as against 36.340 million shares of Wednesday. Local institutions struck deals in PTC, Hub Power, Fauji Fertilizer, Lucky Cement, ICI, Pak Synthetics, Nishat Mills, PEL Appliances, ICP SEMF, KESC, Trust Leasing, Sui Southern Gas and Fateh Textile.

According to an analyst, a snap rally ended as it had started and produced another lacklustre session. The market started strongly and the index attained the day's highest level, but towards the closing hour the market underwent a correction to land in negative column and before closing again inched up to gain nearly six points.

The index depicted a rise of 6.39 points and settled at 1555.30 as against 1548.91 of Wednesday. The major gainers were Shell Pak (Rs 2), Pak Synthetics, Gadoon Textile, Premier Tobacco, Abbott Laboratories and Orix Leasing (Re 1 each).

Although losses were mostly in fractions, they were spread to all counters. Selling was not very aggressive but the absence of leading investors held back the prices. At the end among the 356 changes, 159 landed in the minus territory as against 104 gainers, while 96 issued pegged at their last levels.

Throughout this week the market tried to find a direction but failed. It is expected to react favourably to the coming privatisation of Bankers Equity Limited. However, there was some concern among the investors about the UBL's privatisation. The technical close of UBL has been put off because of a last minute snag. Informally, the buyers have been told that the authorities would like a more experienced management team at the helm of UBL than that named by Saudi Basharahil.

According to a stock dealer, short-covering was largely responsible for Thursday's rise, otherwise there was little investment interest. The market would remain directionless so long as the dust on the political front did not settle, he added.

Hub Power on a volume of 18.875 million shares registered an increase of 60 paisa to Rs 29.45. Prominent among the losers on this counter was PSO (Rs 4), while Shell on a business of 500 shares recovered Rs 2 to close at Rs 127.

PTC on a business of 16.350 million shares was pushed up to Rs 32.65 from Rs 32.15. PNSC and Tri-Star shipping shed 25 paisa each, while Pak Datacom and PIAC remained glued to their overnight levels.

Fauji Fertilizer on a turnover of 1.350 million shares climbed from Rs 74 to Rs 74.50. Pak Gum lost Rs 4.75, BOC Pak declined by Rs 2 and Searle Pak eased by Rs 1.25.

Dhan Fibres on transaction of 793,500 shares ended with paltry rise of five paisa to finish at Rs 7.40.

BOND SECTION: The buying and selling rate of FEBC remained unchanged at Rs 106.50 and Rs 106.75 respectively.