KARACHI, May 26: The KSE 100-share index again crashed on Thursday from the recent highs and plunged by 278 points or four per cent on panic-selling in most of the pivotals, which finished well below their lower circuit breakers. Major losers were PSO, Shell Pakistan, Pakistan Oilfields and PPL, being massively capitalized eroded Rs74 billion from the market capital at Rs1,871.00bn. The index was last quoted at 6,664.86 points, well below its resistance level of 7,000 points.
An idea of developing crisis of confidence in the share business may well be had from the fact sharp decline in leading shares’ prices failed to lure investors back in the arena. “The market is in a serious crisis as unresolved issues, notably increase in broker exposure limit in forward trading, margin financing and rising interest rates have taken steam out of it”, says a leading analyst commenting on the prevailing uncertainty in the share market.
The investors may not re-enter the market until some official word on the unresolved issues or their settlement is announced by the SECP, he added. No one could deny the fact about the positive basic facts but the current investor worries are linked to negative fallout of the SECP actions, which are following each other in quick succession apparently to keep investors at their toes all the time.
The investor mood was also well-reflected in the movements of the KSE 100-share index, which after early rising modestly higher finally fell to close with an extended fall. All the heavy weights in it including PTCL, OGDC, PPL and PSO received fresh battering as a section of investors continued to liquidate long positions in them apparently for replacement buying on the other counters.
The selling in part was also attributed to lining up of funds by some investors for the upcoming IPO of United Bank, whose 200 shares lot will open for public subscription on June 2.
But some others said that the SECP team has selected 10 brokerage houses to inspect their accounts for the last five years to find out the names of their clients. Quick gains irrespective of the amount appears to be the hallmark of the day’s trading but some analysts said the current uneven performance of the market reflects that it is passing through a consolidation phase and could rebound any time.
“The market appears to be in search of a sustainable level but it failed to find any”, analysts said “whether it should be below 7,000 or slightly above this level is an answered question”.
But no one could say that the market has lost relevance to a robust rally it could manifest itself any day after its irritants are removed by the SECP, some of which have taken steam out of the market.
Oil shares again led the market decline, major losers among them being Attock Refinery, National Refinery, Pakistan Refinery, Pakistan Petroleum, PSO, Pakistan Oilfields and Shell Pakistan, off Rs12.55 to Rs18.40.
Other prominent losers included Clariant Pakistan, Noon Pakistan, Ferozsons Lab, Dawood Hercules, Lakson Tobacco and Javed Omer, off Rs7.95 to Rs13.10.
Barring Diamond Industries, Premier Sugar, Central Insurance, WorldCall and Zulfiqar Industries, which rose by Re1 to Rs5, other gains were fractional. Trading volume fell to 185m shares from the previous 289m shares in the absence of leading buyers, while losers led gainers by 258 to 52, with 24 shares holding on to the last levels.
PTCL came in for strong selling despite pre-bid meeting and confirmation of final bidding date on June 10, off Rs3.40 at Rs65.45 on 78m shares followed by OGDC, lower Rs4.70 at Rs89.55 on 24m shares, D.G.Khan Cement, easy Rs2.55 at Rs48.75 on 12m shares, Pakistan Petroleum, off Rs7.35 at Rs163.35 on 11m shares and PSO, down Rs18.05 at Rs343.40 on 9m shares.
Other actives were led by Pakistan Oilfields, off Rs12.55 on 5m shares, National Bank, lower Rs4.55 also on 5m shares, Hub-Power, easy five paisa on 4m shares, Fauji Fertilizer Bin Qasim, lower Rs1.25 on 3m shares and Sui Northern Gas, off Rs1.30 also on 3m shares.
FORWARD COUNTER: Speculative issue on the forward counter came in for massive battering on worries of free float and fell by Rs4.70, Rs8.58 and Rs18.06 for OGDC, PPL and Pakistan Oilfields respectively on heavy selling.
PTCL May settlement fell by Rs3.44 at Rs65.41 on 7m shares its June delivery was off Rs3.48 at Rs66.12 on 4m shares. Others were modestly traded.
