Stock index resists fresh fall amid slow trading

KARACHI — Karachi share market yesterday resisted larger fall as leading base shares came in for active short-covering at the lower levels and finished higher but the broader market remained weak.

By Our Correspondent

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Published: Fri 16 Feb 2007, 9:54 AM

Last updated: Sat 4 Apr 2015, 9:55 PM

The KSE 100-share index showed a modest recovery of 13.20 points at 11,467.96 as compared to 11,454.76 a day earlier as leading base shares,notably National Bank, OGDC, Pakistan Petroleum and PTCL finished recovered from the overnight levels.

An interim dividend of 80 per cent by Shell Pakistan was in line with the analyst predictions but loss in quarterly sales has a negative impact on the entire market, analysts said. Its share value reacted to close lower by Rs12.75 at Rs376.25.

However, unlike the United Bank, Askari Bank, which came out with higher cash dividend and bonus shares at 30 per cent and 25 per cent and 10 per cent and 50 per cent respectively but failed to lift the market from the early lows, Shell Pakistan interim triggered a lot of short-covering on the oil sector.

An Interim dividend of 12.5 per cent by Hub-Power was also failed to boost stock trading as bears dominated the market in the absence of leading buyers.

Apart from the absence of leading investors on technical grounds including implementations deadlines set for some of the measures taken in KSE board's February 14, meeting and their likely impact on stock trading also their toll in the form of low volume, they said.

"The market is still passing through a consolidation phase being in overbought position," analyst Ahsan Mehanti Said adding "and take some more days to resume its upturn."

But Asharf Zakria, an other leading analyst predicts the market is in the process of meeting its demands and will rebound sharply after investors are back under the lead of financial institutions to cover their short positions at the lower levels.

Fateh Textiles and Nestle Pakistan led the list of gainers, up Rs23.15 and 49.90, while United Sugar and Shell Pakistan fell by Rs12.75 and 10.00.

Trading volume suffered sharp fall at 222 million shares from the previous 349 million shares as losers again held a fair lead over the gainers at 188 to 12, with 47 shares holding on to the last levels.

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