KARACHI, April 1: Stocks on Friday resisted larger decline on stray support on most of the undervalued counters at the lower levels, enabling the market to finish well above the day’s lows. “It is a positive sign indicating change in investors’ perceptions,” one broker said, adding that the KSE index, which was about 300 points down at one stage, managed to cut a good portion of the initial losses on the strength of PSO, which recovered sharply from the early lows.
The KSE 100-share index remained under pressure and shed another 173.46 points at 7,596.87 as compared to 7,770.33 a day earlier, as leading base shares tended further lower in the absence of strong support from any quarter.
Meanwhile, the recomposed KSE index was introduced from Friday, adding Pakistan Petroleum to it with a weightage of 8.3 per cent. It is presumed that its addition would make the index more viable currently dependent on the either-way price movements of OGDC. It is also heavily capitalized shares, other being PSO, PTCL and OGDC.
Quick official meetings both at the KSE and the SECP levels amid talk of setting up of a task force to probe into the market’s current crash seem to have further compounded the situation as no one is inclined to make fresh covering purchases at the lower levels fearing some negative steps, analysts said.
“The market has demonstrated in more than one ways that it may not need official guidance,” they said. “Let the market forces allow to do needful without any intervention.”
The worst may be over as was reflected in the market’s mid-week strong rally but then followed quick news from official sources to put it back on the rails, but in the process it lost another about 400 points, they said.
“The market is still in a highly overbought position and needed further pruning that ultimately adds to its strength rather than fresh erosions,” says a leading broker, adding: “Amid scare of fresh official intervention investors try to bail themselves from the current impasse rather than making fresh commitments even at the attractively lower levels.”
The market witnessed a major shift as investors preferred to buy low-priced shares rather than opting for the blue chips in an apparent effort to take no undue risks.
Leading gainers were led by Artistic Denim, Askari Bank, Al-Ghazi Tractors, Murree Brewery, Century Papers, United Sugar, Arif Habib Securities, Gatron Industries and PSO, which recovered Rs5 to Rs24 amid stray buying.
Losers were led by IGI, Mehmood Textiles, National Refinery, OGDC, Shezan, Sitara Chemicals, EFU General, Abbott Lab, Glaxo-SKF, Dawood Hercules, Pakistan Oilfields and PPL, which suffered fresh fall ranging from Rs5 to Rs11.25.
Trading volume fell to 221m shares from the previous 401m shares as losers maintained a modest lead over gainers at 148 to 104, with 39 shares holding on to the last levels.
PTCL was again actively traded, off Rs3.50 at Rs66.75 on 41m shares, followed by PSO, sharply higher by Rs24 at Rs422 on 22m shares, OGDC, off Rs5.55 at Rs106 on 18m shares, Fauji Fertilizer, lower 20 paisa at Rs29.60 on 17m shares, Pak PTA, off 65 paisa at Rs12.75 on 16m shares and National Bank, easy Rs1.30 at Rs114.60 on 14m shares.
Other actives were led by DG Khan Cement, up Rs2.40 on 13m shares, Pakistan Oilfields, off Rs8.20 on 8m shares, TRG Pakistan, lower 75 paisa on 6m shares and Sui Northern Gas, off Rs2.75 also on 6m shares.
FORWARD COUNTER: PSO led the list of actives on this counter on heavy buying, up Rs20.45 on 19m shares followed by PTCL, off Rs3.60 at Rs68.40 on 13m shares, Kot Addu, up Rs3.75 at Rs54.15 on 7m shares, and DG Khan Cement, higher by Rs1.20 at Rs63.45 on 3m shares.
Fauji Fertilizer Bin Qasim and some others showed fresh fall amid slow trading and so did some others.
DEFAULTING COS: Trading on this counter remained relatively slow in the absence of fresh support. Price changes were fractional amid modest deals at the dips but there was no large volume in any of the shares.
