KARACHI, April 5: Stocks on Tuesday failed to sustain the overnight rally as follow-up support turned shy after the withdrawal of institutional support for no apparent bearish reason followed by profit-selling at the higher levels. The selling in part was also attributed to reports of some fresh changes in the risk management rules to protect small investors’ interest and restore sanity to stock trading. The KSE 100-share index lost a good part of the previous session’s sharp gain, off 229.44 points at 7,820.81 as compared to 8,050.25 points a day earlier as all the leading base shares, notably OGDC, PSO and PTCL suffered sharp setback. The market capital also shed Rs60.6 billion at Rs2,156.423 billion.
The market appears to be a hostage to the performance of PTCL, OGDC, and PSO, if they are down they take the index along with them and if they are up they could add any number of points to it after rising by rupees rather than paisa, an insider said.
The weightage formula tells that big rise and fall is not reflective of the broader market’s relative health in relation to the economy but is the outcome of individual performance of the major constituents, he adds.
But what seems to have hastened the sell-off after follow-up support turned shy was a loud whispering in the market that an excise duty of 15 per cent may be imposed on broker commission income in addition to wealth and valued-added tax, analysts said.
“The market’s U-turn worried investors as most of them have been optimistic about the future outlook in the backdrop of its Monday’s spectacular performance when the KSE index posted a largest single-session rise of 453.38 points”, they said.
Some brokers said frequent changes in the trading rules in an effort to forestall any further market plunge are keeping investors in two minds and they think twice to make fresh commitments.
The market has already braved the bear onslaught but not without negative fall-out on the general investors and now it should be allowed to find its own viable levels, they said.
Although, minus signs dominated the list, some of the leading shares managed to finish with an extended gain under the lead of Unilever Pakistan and Wyeth Pakistan, higher by Rs13.60 to Rs70.
Other good gainers were led by Yousuf Textiles, Crescent Textiles, Kohinoor Textiles, Attock Petroleum, Millat Tractors, Pakistan Oilfields and United Sugar Mills, up by Rs3.80 to Rs8.90.
Prominent losers were led by Pakistan Refinery, Clariant Pakistan, Dawood Hercules, Engro Chemical, PPL, Atlas Honda, Bhanero Textiles, and AKD Securities, which suffered fall ranging from Rs6.20 to Rs17.35.
Trading volume rose to 345m shares from the previous 308m shares as losers forced a strong lead over the gainers at 220 to 104, with 24 shares holding on to the last levels. OGDC came in for active profit-selling and led the list of actives, off Rs2.95 at Rs111 on 89m shares followed by PTCL, lower Rs3.55 at Rs68.20 on 59m shares, Pakistan Oilfields, higher by Rs6 at Rs269 on 21m shares, D.G. Khan Cement, easy Rs3 at Rs64 on 21m shares and PSO, sharply lower by Rs22.65 at Rs431 on 18m shares.
Other actives were led by Pak PTA, off Re1 on 16m shares, Fauji Fertilizer Bin Qasim, easy Rs1.30 on 15m shares, National Bank, off Rs1.60 also on 15m shares, MCB, lower Rs1.30 on 11m shares and Pakistan Petroleum, off Rs11.45 on 10m shares.
FORWARD COUNTER: PTCL came in for active selling at the overnight inflated levels and fell by Rs3.65 at Rs69.85 on 18m shares, followed by OGDC, lower Rs5.70 at Rs112.10 on 15m shares, PPL, lower Rs11.85 at Rs225.15 on 13m shares, and PSO, off Rs23 at Rs437.10 on 10m shares.
Pakistan Oilfields on the other hand was traded higher by Rs4.70 at Rs273 on 7m shares and so did some others on active short-covering.
DEFAULTING COS: Dull trading was again witnessed
on this counter in the absence
of support from any quarter. Prices showed fractional
either-way changes amid slow trading.
DIVIDEND: Premier Sugar Mills, interim at the rate of 20 per cent, PIAC and Union Insurance, both nil.
BOARD MEETINGS: Babri Cotton, on April 6, Yousuf Textiles, Progressive Insurance, Indus Dyeing, on April 7, Golden Arrow Stocks, on April 8, United Money Market Fund, on April 12, Faysal Balanced Growth Fund, on April 14, Union Bank, on April 16, Packages on April 25 and Tri-Pack Films, on April 26.
