KARACHI, Oct 29: Stocks on Friday fell across a broad front as higher corporate announcements by some of the leading companies failed to lure investors back in the market in the absence of financial institutions.
A good part of the selling also originated from the institutional traders who are still in the process of shedding extra load to keep the holding in line with their exposure limits.
The KSE 100-share index suffered fresh sharp pruning at 5,332.24, off 35.44 points as compared to previous 5,367.42, reflecting the weakness of leading base shares. Although it breached through the barrier of 5,400 after having at one stage touched the crucial level of 5,500, the underlying sentiment in a way reflects distress signals but rather confidently absorb the fresh float both from the carryover market and financial institutions, brokers said.
For the last couple of sessions financial institutions and institutional traders have virtually stopped fresh buying but rather remained net sellers on selected counters, the brokers said.
"The operation aimed at restoring sanity to the exposure limits seems to have taken steam out of the market as massively overbought financial institutions are out to meet the central bank deadline of Oct 31," they said, adding "there is no question of fresh buying by them until they comply with the State Bank demand."
And that is perhaps why higher dividend and earning reports by most of the leading shares, including PTCL, interim profit of Rs6.00, Pakistan Petroleum and Adamjee Insurance and many others, failed to attract investors.
"Punters and general investors alone could not possibly assume the role of trend-setter in the absence of financial investors," analysts said. "The terribly light daily volumes reflect that most of them have already shed their extra load and may resume fresh covering operations within the specified exposure limits by the next week."
Unlike the previous sessions, the weakness of the broader market did worry some of the leading analysts who fear the expected technical rebound in an oversold market may be further delayed.
Minus signs again dominated the list, major losers being Pakistan Refinery, Atlas Battery, Clariant Pakistan, EFU General, Javed Omer, and Al-Ghazi Tractors, which suffered fall ranging from Rs4 to Rs8.10. Abbott Lab, Merit Packaging, National Foods, Nishat Chunnian and some others also came in for active selling and fell by Rs3.15 to Rs3.45.
Some of the leading shares on the other hand came in for active support at the lower levels and rose by Rs3.10 to Rs5 for Sana Industries, Artistic Denim, Shakarganj Sugar, Gatron Industries, Millat Tractors, Pakistan Gum Chemicals, Berger Paints and Noon Pakistan, but the largest gains of Rs.7.90 and Rs13 were recorded in Shezan International and Atlas Honda, respectively.
Trading volume showed a modest rise from the overnight low level of 100m shares at 105m shares as losers maintained a strong lead over the gainers at 179 to 80, with 35 shares holding on to the last levels.
PTCL, which announced its first quarter accounts showing a profit of over Rs6 billion (EPS Rs1.23, previous Rs1.24), failed to trigger an anticipatory rally ending 10 paisa lower at Rs38.25 on 14m shares.
Other actives, were led by OGDCL, up 40 paisa on the strength of first interim of 15 per cent, on 13m shares, National Bank, higher 30 paisa at Rs70.80 on 7m shares, D.G. Khan Cement, off Rs1.35 at Rs48.05 despite reports of higher interim profit, on 5m shares and Fauji Fertilizer Bin Qasim, easy 20 paisa at Rs20.65 also on 5m shares.
Other actives were led by PICI Growth Fund, off Rs3.45 on 4m shares, Fauji Fertilizer, up 70 paisa also on 4m shares, Nishat Mills, lower 40 paisa on4m shares, Bank of Punjab, off Rs1.10 on 3m shares and Pak PTA, lower 45 paisa also on 3m shares.
FORWARD COUNTER: PPL came in for fresh selling and fell by Rs1.73 and Rs1.50 for both the November and October settlements at Rs117.25 and Rs116, respectively, on 10m and 9m shares, while OGDCL was marked down by 35 paisa at Rs66.35 on 7m shares.
October and November contracts of PTCL fell by 10 and 23 paisa at Rs38.25 and 38.50 on 5m shares each. Others were traded either-way on active deals.
DEFAULTER COS: Crescent-Standard Bank was actively traded, off 15 paisa at Rs9.75 on 0.333m shares, while all other shares showed fractional price changes amid slow ready deals.
DIVIDEND: Meezan Bank, interim stock dividend at the rate of 15 per cent and right share of 30 per cent at par; TRG Pakistan, right share at the rate of 60 per cent also at par or six shares for every 10 shares held.
