KARACHI, March 26: Shares on the Karachi stock market underwent technical correction on Tuesday, which saw KSE-100 index slide by 28.37 points or 1.5 per cent to close at 1865.63 points.

There was nothing negative in the news that could have held back the bulls, and equity traders said that neither institutions nor foreign funds were seen to be on the selling side. The day was carried by punters and day traders who took profit at current levels.

The three holidays passed off peacefully, which should have encouraged bulls to push forward when the market opened on Tuesday. But most investors seemed to think that discretion was the better part of valour. Volumes were again low, which analysts said was in part due to new trading system, which was put into operation by the KSE from Tuesday. Analysts observed that the new system had been designed to accommodate higher volume and to facilitate traders to carry out transactions with greater speed. “The traders are just getting used to the new system and a few problems that they encounter currently could be sorted out within a couple of days as is naturally the case with any new system,” an analyst at InvestCap said.

Most traders and analysts were expecting the market to rebound and the index to cross 1900 points to the immediate barrier at 1950. Moosani Securities observed that the undercurrents were bullish and the brokerage recommended accumulation of pivotals. First Capital Research also reiterated that downward correction should be taken as an opportunity for long-term investment in PTCL, Hubco, PSO, Askari, MCB and SNGPL. But Mohammad Zubair Ellahi at Kausar Abbas Bhayani argued: “Sustainability of inflated levels in the absence of fresh liquidity is difficult and the adjustment process may continue.” He pointed out that the overall badla volumes were still running high and the market was yet to test the capacity of weak holders. “The broader term outlook is positive, with immediate softness,” he agreed.

For the day, however, most key stocks finished lower. Some 314 shares came up for trading on Tuesday, which was down from the record 402 stocks that were traded last Friday.

Total of 154 shares ended in the minus columns against 102 pluses; 58 equities finished unchanged.

Lever Brothers led the losers, down by Rs15, followed by Pakistan Reinsurance Corporation, which slipped by Rs9. Major gainers included, Treet Corporation, which rose by Rs4.20 and Sana Industries, up by Rs3.45.

Trading volume stood at 139 million shares, which though higher than last Friday’s 117 million, was significantly lower than the usual average daily volumes.

Hub-Power led the list of actives, easy 50 paisa to Rs24.90 on 33.5 million shares; followed by PTCL, down 45 paisa to Rs19.35 on 27.9 million shares.

National Bank shed 25 paisa to Rs22.70 on 11.5 million shares. The share in the bank oscillated between high and low of Rs23.05 and Rs22, during the day. PSO declined by Rs4 to Rs159.50 on 11 million shares. ICI easy by 90 paisa to Rs55.25 on 6.8 million shares. KESC was one of the rare big volume gainers; the stock in the utility rose 35 paisa to Rs7.35 on 5.9 million shares.

Other actives were Ibrahim Fibre, down 50 paisa on 5.5 million shares; Sui Northern down 40 paisa on 5.4 million shares; Dewan Salman Fibre easy by 60 paisa on 4.2 million shares and FFC Jordan lower by 35 paisa on 3.4 million shares.

FUTURE CONTRACTS: Hub-Power led the list of actives, easy 45 paisa to Rs24.95 on 5.2 million shares followed by PTCL down 50 paisa to Rs19.40 on 2.4 million shares. PSO was off Rs3.40 to Rs160.80 on 1.4 million shares; Sui Northern slid by 45 paisa to Rs14.20 on 3.2 million shares and Engro Chemicals declined by Rs1.95 to Rs73.15 on 2.9 million shares.