KARACHI, April 28: Stocks on Thursday failed to extend overnight run-up as follow-up support turned shy despite reports of higher corporate earnings and bonus shares by some of the leading companies, notably Fauji Fertilizer and Siemens Pakistan.
There could be several reasons behind the market’s snap reversal leading among them appears to be lack of investor confidence in its ability to hold on to technical gains and fresh heavy selling in the leading oil shares.
An interim cash dividend of 300 per cent by Siemens Pakistan failed to enthuse investors as its own share fell by Rs15.
A late burst of profit-taking by a section of investors, therefore, halted its upward drive but selling was well absorbed on some counters at the dips, signalling that the best is still to come.
After having steadily crossed the barrier of 7,300 in the morning session, the KSE 100-share index finally finished reacted owing to late selling in the leading base shares, off 131.26 points at 7,144.48 as compared 7,275.74 a day earlier.
Bulk of the selling remained confined to leading energy shares, notably OGDC, PPL, PSO, PTCL and some others, as the same set of investors who covered positions in them indulged in profit-selling at the higher levels, pushing the market again in the minus column.
There was a near-consensus among leading brokerage houses and analysts that the market should behave properly after the settlement of COT-related issues, but what seems to be lacking is investor confidence and reluctance to hold long positions even on the blue chip counters.
“We don’t see any reason behind the snap sell-off,” some others said. ”The market has more than one reason to stay on the higher side at least for the near-term.”
Reports of corporate earnings from some of the leading companies, notably Fauji Fertilizer, DG Khan Cement and some others were in line with market perceptions and should have played a role of consolidation forces, they said.
“But unusual market forces crept in mid-way and played their role in diverse directions, creating imbalance in its statistical position temporarily,” brokers said. “They should have undergone a technical correction but at the weekend session.”
Energy shares led to the market retreat under the lead of Shell Pakistan, PSO, Pakistan Oilfields, PPL, which fell by Rs5.65 to Rs9.35 followed by Fauji Fertilizer, Clover Pakistan, Pakistan Services, Pakistan Refinery, Haroon Oils, Indus Dyeing, Jahangir Siddiqui Bank and Millat Tractors, which suffered fall ranging from Rs4 to Rs11.
Although minus signs dominated the list, some of the leading shares managed to finish higher, leading among them being Zulfiqar Industries, Berger Paints, PNSC, Crescent Steel, Al-Ghazi Tractors, Dawood Hercules, BOC Pakistan, Artistic Denim and National Refinery, up Rs4 to Rs17.
Trading volume was on the lower side as a section of investors kept to the sidelines, falling to 224m shares from the previous 319m shares as losers again forced a strong lead over gainers at 219 to 92, with 40 shares holding on to the last levels.
PTCL led the list of actives, off Rs1.15 at Rs61.90 on 46m shares followed by OGDC, lower Rs3.25 at Rs96.75 on 38m shares, National Bank, lower 25 paisa at Rs97.75 on 29m shares, MCB, up Rs2 at Rs76 on 21m shares, PSO, off Rs9 at Rs366.50 on 12m shares.
Other actives were led by DG Khan Cement, easy 20 paisa on 11m shares, Sui Northern Gas, off 45 paisa on 8m shares, Fauji Fertilizer Bin Qasim, easy 35 paisa on 7m shares, Pakistan Petroleum, lower Rs8.10 on 6m shares and Pakistan Oilfields, off Rs9.35 on 5m shares.
FORWARD COUNTER: PPL came in for active selling and fell Rs2.62 at Rs164 on 5m shares followed by PTCL, easy Rs1.15 at Rs62 on 3m shares, OGDC, lower Rs3.50 at Rs97 on 3m shares, PSO, off Rs10 at Rs366 also on 3m shares and MCB, higher by Rs1.93 at Rs77 on 2m shares.
DEFAULTER COS: Share values on this counter showed fresh fractional decline on stray selling amid light trading. There was no big share deal in any of the counters.
