KARACHI, March 16: The KSE 100-share index on Wednesday received massive battering followed by heavy selling in the leading base shares under the lead of OGDC and PTCL but managed to finish well above the day’s lows at 10,077.89, off 225.24 points and eroding Rs65 billion from market capital. It was a day of wide either-way price movement as bulls and bears fought pitched battle to tilt the balance in their respective favour but the latter managed to have a field day in the final analysis in a highly overbought market. But the total rout of the bulls was averted.
A massive volatility of 547 points during the session, as the index touched the highest earlier at 10,509.13 and the lowest at 9,962.27, analysts said reflects the long overdue technical correction has set in, of course, after crossing the crucial level of 10,000.
There was a panic for a while in the corridors of KSE as bad news followed in quick succession and smaller groups of investors were out to get out of the market but the situation was saved by the re-entry of leading institutional traders who made active covering purchases at the falling prices.
But bulls were not inclined to be witness to a silent surrender and fought back, pushing it back above the barrier at 10,077.89, recovering in part some of the initial losses. “The reaction was long overdue but it was delayed apparently under a verbal agreement between the major market players not to send bearish signals among the foreign investors before having touched the major level of 10,000 points”, some analysts said.
The market has risen by 60 per cent during the last about 12 weeks and if it sheds a few hundred points to meet its technical demands what is the harm in it as the rise and the fall is an essential part of the share business, says a leading broker.
“I don’t think bears have the guts and sound financial footing to put the market back on the bearish route sans the shaky bulls”, he said and added “bulls are talking of further gains beyond the 10,000 index level and they could perform miracles if they opt for it”.
The market could shed another few hundred points on technical grounds but each correction adds to the general health of the market in more than one ways, while those who believe in quick and easy gains leave the market, he said.
The market decline was led by the energy sector followed by overvalued shares on the counters, notably foreign shares and fertilizer sector. The largest fall of Rs15.05, Rs15.70, Rs17.20, Rs19.05, Rs20.15, Rs20.50, and Rs34 was recorded in National Refinery, Pakistan Petroleum, Pakistan Oilfields, PSO, Shell Pakistan, Treet Corporation and Parke-Davis respectively.
Among the leading foreign shares, Clariant Pakistan, ICI Pakistan, Abbott, Aventis, Glaxo-SKF and some others suffered fall ranging from Rs5 to Rs8.75.
Some of the shares, however, did not follow the market’s general trend and rose under the lead of Wyeth Pakistan, Unilever Pakistan, AKD Securities and Valika Fabrics, up by Rs25 to Rs83 followed by Tariq Glass, United Sugar, Bank Alfalah, Associated Industries, Jahangir Siddiqui Capital Fund, Jahangir Siddiqui C0, which posted gains ranging from Rs2.25 to Rs6.50.
Trading volume rose to 667m shares from the previous 632m shares as losers forced a strong lead over the gainers at 245 to 102, with 40 shares holding on the last levels.
The bulk of the profit-selling remained confined to leading base shares under the lead of OGDC, off Rs3.75 at Rs186 on 180m shares, it has recently assumed the role of trend setter owing to its massive weightage in the index, followed by Pak PTA, higher by Rs1.20 at Rs15.75 on 176m shares, National Bank, lower 75 paisa at Rs161 on 48m shares, Fauji Fertilizer Bin Qasim, lower Rs1.25 at Rs38.75 on 42m shares, PTCL, off Rs1.30 at Rs86.60 on 35m shares.
Other actives were led by PIAC, lower 15 paisa on 23m shares, D.G.Khan Cement, off Rs4 on 16m shares, Bank of Punjab, lower Rs5.30 on 15m shares, Pakistan Oilfieds, off Rs17.20 on 10m shares and Bank Alfalah, up by Rs4 on 8m shares.
FORWARD COUNTER: OGDC also followed the list of actives on this counter and fell by Rs5.90 at Rs187.70 on 196m shares followed by Pakistan Tobacco, lower Rs1.25 at Rs27.80 on 195m shares, PPL, sharply lower by Rs16.15 at Rs306.85 on 51m shares, Fauji Fertilizer Bin Qasim, lower Rs2.10 at Rs40 on 28m shares and National Bank, off Re1 at Rs162.50 on 26m shares.
DEFAULTER COS: Crescent-Standard Bank came in for active support and rose Rs1.50 on a large volume 1.215m shares followed by Dandot Cement, lower 35 paisa at Rs11.65 on 0.103m shares.
BOARD MEETINGS: Saif Textiles, on March 21, Highnoon Labs, Pakistan Reinsurance Company, on March 22 and Pak-Suzuki Motors, on March 25.
