KARACHI, April 8: Stocks on Friday turned in a highly volatile performance as investors played on both sides of the fence indulging alternate bouts of buying and selling. The KSE index was off 191 points. Analysts say the chief factor behind the market’s erratic movements is inconsistency in the buying support from the big players. The intriguing factor is that no one including the financial traders is inclined to hold long positions and just gets out of the market on small margin of profits.
However, there was no negative news on the corporate and economic front to which the reversal could be attributed excepting profit-selling by the day traders and weakholders.
The KSE 100-share index suffered a sharp fall of 191.04 points at 7,593.30 but managed to finish well above the day’s lowest levels, indicating that next week may witness some pleasant changes both in terms of volume and the extent of recovery.
The market capital also showed a decline of Rs34.841bn at Rs2,101.374bn as compared to Rs2,146.215bn a day earlier, reflecting the weakness of OGDC, PPL, PSO and some others.
The recovery at the weekend session at the fag-end of the session reflects that most of the blue chips could virtually race toward their pre-reaction levels possibly by the next week.
A buying tempo is building up in the energy sector under the lead of OGDC, PPL and PSO as investors have reasons to believe that the next week could witness some tangible changes in the trading pattern at least in the leading base shares.
The volatile performance of the market throughout the last week reflect no one is inclined to hold long positions and tries to cash in on the available margin of profits.
“It is a bad omen for the market, which is ripe for a strong technical rebound”, analysts said “in early trading energy shares, notably OGDC, Pakistan Oilfields tried to intensify covering operations but the absence of financial institutions and general buying halted the market’s upward drive”.
Although losing shares dominated the list of leading shares National Refinery and Clariant Pak managed to finish higher by Rs7 and Rs7.50 respectively. United Sugar, Pakistan Oilfields, Atlas Honda, and IGI, rose by Rs10 to Rs19.95.
Losers were led by Gadoon Textiles, Indus Dyeing, Nishat Mills, OGDC, Fauji Fertilizer, BOC Pakistan, Murree Brewery, Noon Pakistan and PSO, which suffered fall ranging from Rs4.10 to Rs12.80.
Trading volume suffered a modest fall at 225m shares from the previous 232m shares but losers forced a strong lead over the gainers at 204 to 87, with 31 shares holding on to the last levels.
All the leading base shares fell sharply under the lead of PTCL, off Rs3.35 at Rs64.35 on 39m shares followed by OGDC, off Rs4.70 on 36m shares, Pakistan Oilfields, higher by Rs15.30 on dividend news, D.G.Khan Cement, off Rs2.55 at Rs65.90 on 23m shares, Pakistan Petroleum, lower Rs3.75 at Rs210 on 12m shares and PSO, sharply lower by Rs12 at Rs415.80 on 9m shares.
Other actives were led by Fauji Fertilizer Bin Qasim, lower 30 paisa on 18m shares, Pak PTA, easy 25 paisa on 9m shares, PSO, sharply lower by Rs12 on 9m shares, Fauji Cement, easy 50 paisa on 7m shares and Hub-Power, lower 15 paisa on 4m shares.
FORWARD COUNTER: With the exception of Pakistan Oilfields which rose by Rs13, the three PTCL, OGDC and PPL fell by Rs3.40, Rs4.85 and Rs6 at Rs65.10, Rs107.05 and Rs212.50 respectively on 7m, 6m and 8m shares. Others also fell where changed amid active selling.
DEFULATER COS: Trading on this counter lacked normal trading interest as investors remained busy in the ready and forward counters. Price changes were fractional amid light trading.
