Index sheds 96 points despite fresh buying in PTCL
By Our Staff Reporter
KARACHI, May 16: Fresh heavy buying in PTCL on Monday ahead of its bidding on June 10 featured the trading in otherwise terribly bearish market where prices fell across a broad front on active selling in the energy sector. The KSE 100-share index shed 96 points at 7,315.50. Brokers did not give any specific reason behind the snap reversal but some others said the selling came in the shape of technical correction on the overbought counters.
Investors are liquidating long positions on the other counters to have a big stake in PTCL at the current rates, which analysts predict, “ensure handsome gains”. According to them, although benchmark of its sell-off is still under considerations, there is a loud whispering in the market that it could be around $2 per share.
An interim dividend at the rate of 15 per cent by PICIC was in line with the investor perceptions but it came in a falling market and failed to stir fresh buying. After moving either-way earlier, the KSE 100-share index finally finished with a sharp fall of 95.83 points at 7,315.83 as compared to last weekend’s 7,411.33.
The market should have suffered a major fall followed by selling triggered by conflicting news from the political front but heavy fresh buying in PTCL saved the situation. But leading energy shares, OGDC, PSO, and PPL considered market leaders after the PTCL came in for active profit-selling at the weekend inflated levels and took the entire market along with them in the minus column, brokers said.
The current volatility of the market on the one hand reflects inconsistency in financial support and lack of investor confidence in the market’s future outlook on the other, they said.
All the leading shares fell like ninepins under the lead of oil, textiles and auto, prominent losers being Artistic Denim, Javed Omer, National Refinery, and Nestle MilkPak, off Rs11 to Rs27.
They were followed by Valika Fabrics, PSO, Mari Gas, PPL, Honda Atlas, Sitara Chemicals, Century Papers and Aventis, off Rs6 to Rs8.25. Barring Noon Pakistan, Mitchell’s Fruits, Clariant Pakistan, Pakistan Cables, AKD Securities and Siemens Pakistan, which tended higher by Rs2 to Rs32, being in Siemens Pakistan, other gains were fractional.
Trading volume showed a modest rise at 263m shares from the previous 255m shares but losers maintained a strong lead over the gainers at 261 to 67, with 32 holding on to the last levels.
The most active list was again topped by PTCL, up by Rs1.55 at Rs72.45 on 130m shares followed by OGDC, lower Rs1.85 at Rs99.45 on 35m shares, PSO, off Rs7.10 at Rs373.90 on 14m shares, National Bank, higher by 35 paisa at Rs96.25 also on 14m shares and PPL, sharply lower by Rs7.80 at Rs177.95 on 8m shares.
D.G.Kha Cement led the list of other actives, lower 85 paisa on 7m shares, PICIC Growth Fund, off Rs1.65 on 6m shares, Pak PTA, easy 20 paisa on 5m shares, Sui Northern Gas, off 90 paisa on 5m shares, and Fauji Fertilizer Bin Qasim, lower 55 paisa on 4m shares.
FORWARD COUNTER: Selling was more pronounced on this counter followed by reports of some fresh thinking on the new rules and their implementation.
PTCL, however, did not look back and rose by another 45 paisa at Rs72.65 on 18m shares followed by OGDC, lower Rs1.90 at Rs99.55 on 7m shares, and PPL, off Rs8.50 on 6m shares.
Other actives were led by PSO, off Rs7.70 at Rs374.40 on 5m shares and Fauji Fertilizer Bin Qasim, lower 55 paisa on 1m shares.
DEFAULTER COS: Stray business was witnessed on this counter but only jobbers participated in the proceedings, while prominent investors remained busy in the ready section owing to falling prices and active selling. Price changes were fractional either-way.
