KARACHI, June 3: Stocks on Friday failed to extend the run-up as a section of leading investors indulged in weekend profit-selling at the inflated levels but analysts are not inclined to entertain bearish ideas at this stage. The KSE 100-share index fell by 109 points or 1.5 per cent at 7,213.17.
In pre-budget sessions, both leading brokerages houses and financial institutions shed their extra load in an apparent effort to absorb negative fallout of the fiscal measures if any, the current correction points to this phenomenon.
After having risen sharply higher during the last four sessions, stocks ran into weekend profit-taking at the inflated levels but it was well absorbed at the dips. The national budget is due to be announced on Monday and in market parlance investors hate to take fresh positions in the absence of “fiscal leaks” and amid conflicting reports about the taxes and the incentives for the corporate sector.
The market’s volatile performance with the start of opening session was also well-reflected in the KSE 100-share index, which early rose by 47 points on support from the overnight rally but later fell by 58 points towards the close of morning session.
At close, the index fell by 109.20 points at 7,213.17 as compared to 7,322.38 a day earlier as leading base shares came in for active selling under the lead of PSO, PTCL, OGDC, Pakistan Oilfields and some others. The highest for the day was 7,369.54 and the lowest 71,82.68.
Unlike the previous sessions when investors were out to grab the floating stock of some leading shares, they were net sellers at the weekend session and in part liquidated their long positions in an apparent effort to face budget uncertainties.
However, it is widely speculated the budget makers might not disturb the status quo as they have fair idea of how investors react to any negative regulatory step. The talk of increase in CVT, or tax on broker share income appears to be speculative and the general thinking is that if there is no incentives for the investors in Monday’s budget, there may not be new tax as well.
“After the amicable settlement of all the regulatory issues including increase in free float to three per cent and 50 per cent cut in cash margin requirements, the index demonstrated that it has the potential to rise from any lows in normal working conditions,” analysts said.
Pakistan Petroleum, and Javed Omer were leading among the gainers, up Rs7.60 and 10.75, followed by Faisal Spinning, AKD Securities, Sitara Chemicals, and Artistic Denim, which posted gains ranging from Rs3.20 to Rs5.50.
National Refinery and Shell Pakistan were prominent among the losers, off Rs13.70 and Rs14.70 respectively. Other prominent losers included Millat Tractors, HinoPak Motors, Al-Ghazi Tractors, Pakistan Oilfields, Attock Petroleum, Pakistan Refinery, Attock Refinery, PSO, Clariant Pakistan, and Arif Habib Securities, off Rs5 to Rs9.65.
Trading volume suffered a modest fall at 319m shares as compared to previous 369m shares as losers forced a comfortable lead over the gainers at 158 to 78, with 23 shares holding on to the last levels.
PTCL topped the list of actives, off Rs3.50 at Rs67.35 on 98m shares followed by OGDC, lower by 20 paisa at Rs101.20 on 97m shares, Pakistan Petroleum, up Rs7.60 at Rs196.10 on 25m shares, National Bank, off Rs3.35 at Rs96.50 on 21m shares, DG Khan Cement, up Rs1.10 at Rs56.85 on 21m shares, Pakistan Oilfields, off Rs6.60 at Rs265 on 10m shares and PICIC Growth Fund, lower Rs1.85 at Rs52.25 on 5m shares.
Other actives included Fauji Fertilizer Bin Qasim, higher by Rs2.50 on 5m shares, Fauji Cement, off 75 paisa on 4m shares and Pak PTA, off 70 paisa also on 4m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives on this counter, sharply higher by Rs7.55 at Rs197.25 on 18m shares, PTCL, lower Rs3.55 at Rs67.85 on 12m shares, PSO, off Rs17.65 at Rs366.10, OGDC, up 60 paisa at Rs100.50 on 7m shares and Pakistan Oilfields, off Rs7.70 at Rs267.30 on 3m shares. Others also fell modestly amid slow dealings.
DEFAULTER COS: Trading on this counter remained slow in the absence of strong demand from any quarter. Stray two-way business was reported in some of the textile shares, while others were neglected.
KARACHI, June 3: Stocks on Friday failed to extend the run-up as a section of leading investors indulged in weekend profit-selling at the inflated levels but analysts are not inclined to entertain bearish ideas at this stage. The KSE 100-share index fell by 109 points or 1.5 per cent at 7,213.17.
Pakistan Petroleum, and Javed Omer were leading among the gainers, up Rs7.60 and 10.75, followed by Faisal Spinning, AKD Securities, Sitara Chemicals, and Artistic Denim, which posted gains ranging from Rs3.20 to Rs5.50.
