Stocks stay flat

KARACHI, March 14: The share market on Monday resumed trading on a dull note as the post-launching session of the Margin Trading System (MTS) failed to generate a widely expected positive investor response as was reflected by either-way fractional price changes even on the blue chip counters.

“Political uncertainty in the backdrop of warring postures adopted by the major contenders of power overshadowed the MTS launching,” said analyst Samar Iqbal, adding investors are more worried over the fate of future ties between the PPP and the MQM.

But in any case the broad reaction to the much-delayed leverage facility for the ready section was not that enthusiastic as was expected by the most analysts.The market’s terrible sluggishness was also well-reflected in the benchmark KSE 100-index, which remained dormant around the previous level closing with a fractional gain of 0.13 points at 12,045.38.

National Bank, Engro Corporation, Dawood Hercules and some leading oil shares, notably Pakistan Oilfields did not allow it to fall below the recently attained resistant level of 12,000 points.

But analyst Ahsan Mehanti hopes the sailing will be pretty smooth after the brokerage houses have re-fixed their post-MTS investment priorities to give it befitting welcome in due course.

He said conflicting signals from the political and economic front continued to have their toll on the blue chip counters keeping a large section of investors awaiting go ahead signals from their brokerage houses.

“Foreign selling kept the locals on the back-foot,” analyst Hasnain Asghar Ali said and added rising judicial-political and law order situation added to the prevailing uncertainty.

But the availability of leverage facility, however, kept the momentum positive and stocks having the capacity of trading at improved multiples did attract support, he added.

It was perhaps in this background that advancing shares have slight edge over the losers at 144 to 136, with 87 remaining unchanged at the last level of 271. But the turnover figure showed a modest rise at 77.050m shares from the previous 68m shares.

Leading gainers were led by Unilever Pakistan, Dawood Hercules, ICI Pakistan, Shezan International, Bata Pakistan, Indus Dyeing, Island Textiles and some others, which posted gains ranging from Rs5.13 to Rs90.91.

Prominent losers were led by Rafhan Maize and Nestle Pakistan, off by Rs22.99 and Rs15.94 followed by Shell Pakistan, Al-Ghazi Tractors, Attock Petroleum and Bhanero Textiles, off by Rs2.06 to Rs12.90.

The active list was led by Nimir Chemicals, firm by 31 paisa at Rs3.01 on 13m shares followed by Descon Oxychem, up 98 paisa at Rs8.96 on 10m shares, Nishat Chunian, up Rs1.31 at Rs29.03 on 6m shares, National Bank, firm by 36 paisa at Rs79.26 on 5m shares, Fatima Fertiliser, steady by 24 paisa at Rs12.57 on 4m shares, Arif Habib Corpn, up 60 paisa at Rs24.03 on 4m shares and Lotte Pakistan, steady by seven paisa at Rs15.93 also on 4m shares.

Fauji Fertiliser Bin Qasim, steady by five paisa at Rs39.86 on 3m shares, Descon Chemicals, up 44 paisa at Rs3.07 on 2m shares and Engro Corporation, higher by Rs1.14 at Rs236.64 also on 2m shares.

FUTURE CONTRACTS: National Bank-B came in for modest support and was marked by 16 paisa at Rsl58.28 on 0.810m shares followed by Engro Corpn, up 88 paisa at Rs196.59 on 0.447m shares, Fauji Fertiliser Bin Qasim, easy by 13 paisa at Rs40.03 on 0.412m shares and Pakistan Oilfields, firm by 22 paisa at Rs320.29 on 0.222m shares.

DEAFAULTER COMPANIES: Trading activity on this counter was relatively slow in the absence of active support from the investors. Japan Power led the list of active, lower four paisa at Rs4 on 82,617 shares followed by Quice Foods, up 20 paisa at Rs3.10 on 26,000 shares and S.S. Oils, easy 14 paisa at Rs4 on 7,500 shares. Others were fractionally traded.