KARACHI, July 27: Stocks on Tuesday fell on a wide front as weak holders continued to unload their long positions fearing a badla-related sell-off but unlike the previous sessions there were buyers at the dips.
The KSE 100-share index shed another 32 points at 5,314.40 wiping out Rs10bn from the market capital.
Massive battering received by some of the leading shares, notably by the energy sector under the lead of PSO, Pakistan Refinery and Shell Pakistan dragged down the entire market, brokers said adding the "KSE has to apply circuit breakers in some of them to forestall further fall."
The opening was on the higher side as investors covered positions at the lower levels ahead of the board meetings of some of the leading companies before the end of the current month and market talk of higher dividend.
But the mid-session witnessed the return of the bears who took profit at the early rise and push the market again into the minus territory. After an initial rise of 20 points, the KSE 100-share index finally ended with a fresh fall of 31.75 points at 5,314.40 owing to massive battering of some leading base shares including the PSO.
The board meetings of Engro Chemical, PSO, Fauji Fertilizer, Rafhan Maize, Packages and ICI Pakistan and some other mega companies are due on July 28, 29 and 30 and analysts predict higher interim dividend and in some cases bonus shares also.
The investor reaction will essentially depend on the size of the interim payouts, working results for the half year and the future profit outlook, brokers said. However, buying support was not that aggressive as to suggest that bulls have made deeper inroads into the domain of bears at least for the near-term, they said.
"Higher carryover rates and volume continue to be the main inhibiting factors behind the market's current sluggishness," says a leading broker and "until the situation on the carryover market is eased the market may not significantly react to its technical demands."
But some others said apart from the absence of leading financial traders, the market is also facing some liquidity problems because huge amounts will remain tied to the Pakistan Petroleum IPO until balloting is held.
Meanwhile, another cement unit, having daily production capacity of 4,000 tons has started commercial production. Sponsored by a leading group well-known for paper products, it is sure to get its share in a protected market held hostage by a cartel. But its entry may have a negative impact on the earnings of the existing companies.
Although losers again dominated the list under the lead of Javed Omer and Shell Pakistan followed by reports of lower interim profits, falling by Rs20 and Rs17 in that order.
They were followed by Noon Sugar, Gatron Industries, Century Papers, National Food, Dream world, PSO and Lakson Tobacco, off Rs4.45 to Rs10. But on the other hand Clariant Pakistan, and Packages rose by Rs5 to Rs7.55. Other good gainers were led by Bannu Woollen, Unilever Pakistan, Askari Bank, EFU General Insurance, up Rs2.50 to Rs5.
Trading volume rose to 178.314m shares from the previous 126m shares as losers maintained a strong lead over the gainers at 234 to 83, with 37 shares holding on to the last levels.
National Bank led the list of actives, up Rs1.25 at Rs71.50 on 23m shares followed by Bank of Punjab, easy 70 paisa at Rs65.20 on 19m shares, PTCL, up 40 paisa at Rs44.30 on 18m shares, DG Khan Cement, lower Rs1.50 at Rs44.30 on 18m shares, Askari Bank, sharply higher by Rs3.10 at Rs70.60 on 11m shares and the PSO, off Rs5.70 at Rs263.05 on 9m shares.
Other actives were led by OGDC, easy 25 paisa on 9m shares, FF Bin Qasim, up 15 paisa on 7m shares, Lucky Cement, lower 75 paisa on 6m shares and Maple Leaf Cement, off 55 paisa on 5m shares.
FORWARD COUNTER: PSO led the list of leading losers, off Rs5.60 at Rs265.49 after some brokers tried to push its share value lower and to buy apparently ahead of its board meeting rumours of bonus shares.
Pakistan Petroleum also fell by 95 paisa at Rs109.80 on 15m shares followed by OGDC, easy 25 paisa at Rs65.80 on 3m shares, PTCL, up 25 paisa at Rs44.65 on 2m shares and FF Bin Qasim, unchanged at Rs19.20 also on 2m shares.
DEFAULTER COS: After several lean sessions, Crescent Standard Bank came in for stray support and rose by 40 paisa at Rs9.10 on 0.114m shares, while all others were modestly traded mostly on the lower side.
