Heavy selling in PTCL, Hubco: index down 43 points
By Our Staff Reporter
KARACHI, March 15: Stocks on Friday beat a hasty retreat as bears were back in the market and indulged in heavy selling in PTCL and Hub-Power, pushing the KSE 100-share index well below the chart point of 1,900 at 1,887.04 or off 2.25 per cent.
There was no negative news from the external front, but punters seem to have took advantage of the higher badla rate and large outstanding business and tilted the balance in their favour after making hasty selling.
But floor brokers say the jolt is temporary and is generally caused at the weekend sessions on weakholders and jobbers selling, and as far as the performance of the broader market is concerned it is fairly encouraging.
The opening was, however, on the higher side owing to active follow-up support extended in the backdrop of reports that Expressions of Interest (EoI) for sell-off of 51 per cent controlling shares of the oil giant PSO has been invited by the Privatisation Commission, with a commitment that PTCL will also be sold out during the next six months.
The KSE 100-share index early was, therefore, up by 10 points but late selling pushed it down to finish sharply lower at 1,887.04, off 43.43 points. The weekend selling also took its toll on selected counters, which eroded about Rs14 billion from the market capitalization at Rs422.299 billion from the previous Rs436.130 billion.
The breach of the barrier of 1,900 did not worry investors as it was not real and was the manipulation of punters and that may well prove good for the health of the market, dealers said.
But energy shares did not follow the market’s general line of action and remained in strong demand under the lead of PSO, Shell Pakistan and Hub-Power and imparted strength to the underlying sentiment.
“We don’t think bears have the will and urge to reverse the current run-up as it also goes in their favour too,” stock analysts at the Moosani Securities predict, adding “in the recent past the market has undergone some basic changes, which will not allow a major retreat, corrections here and there notwithstanding.”
Minus signs dominated list, major losers being MCB, Babri Textiles, Murree Brewery and Shell Pakistan, which suffered fall ranging from Rs2 to Rs7.05, the largest being in Shell Pakistan.
Other blue chips, which also fell included Habib Insurance, Cherat Cement, PSO, Fauji Fertiliser, BOC Pakistan and Lever Brothers and National Bank, falling by Rs1.35 to Rs5.
Leading gainers were led by Bata Pakistan, Bannu Woollen, Dawood Hercules, Treet Corporation, Universal Leather, and some others, rising by Rs2.15 to Rs3.
But the largest rise ranging from Rs5.35 to Rs10 were recorded in Pakistan Oilfields, Bhanero Textiles and Siemens Pakistan, which rose on active support in the backdrop of pressure on the floating stock.
Owing to heavy selling in the pivotals, turnover figure was maintained on the higher side at 236 million shares, bulk of which went to the credit of PTCL and Hub-Power, which traded on regular basis instead of spot. Losers forced a strong lead over the gainers at 141 to 60, with 58 shares holding on the last levels.
PTCL again topped the list of most actives, off one rupee at Rs20.25 on 77m shares followed by Hub-Power, easy 80 paisa at Rs25.50 on 68m shares, PSO, off Rs1.60 at Rs169 on 17m shares, ICI Pakistan, easy 20 paisa at Rs54.40 on 12m shares and Sui Southern, off 65 paisa at Rs14.85 on 7m shares.
Other actives were led by Japan Power, easy five paisa on 7m shares, Engro Chemical, up Rs1.20 on 6m shares, Pakistan PTA, off 65 paisa also on 6m shares, National Bank, easy Rs1.35 on 5.597m shares and Dewan Salman, off 75 paisa on 5.408 shares.
FUTURE CONTRACTS: Leading shares on the forward counter also followed the lead of their counterparts in the ready section and fell by 90 paisa to Rs1.55 for PTCL, Hub-Power and PSO, at Rs20.40, 25.55 and Rs170 on 6.745m, 20.819m and 2.485m shares, respectively. Other also suffered fall on selling.
But Engro Chemical was the only exception, which rose by Rs1.60 at Rs76.40 on 0.495m shares followed by active renewed support.
DEFAULTING COMPANIES: Trading on this was relatively slow as shares of only two companies came in for active bouts of buying and selling. While Allied Motors fell by 55 paisa at Rs4.60 on 1,500 shares, Automotive Battery rose by 10 paisa at Rs6 on 1,000 shares.
