KARACHI, June 14: Stocks on Tuesday failed to extend the overnight recovery as leading shares attracted selling at the inflated levels under the lead of PTCL, which led the market decline amid conflicting reports about the functioning of the telecom system and union’s threat to jam it on Wednesday.
Investors hastened to shed extra load in PTCL until the situation in regard to its sell-off on the fixed date of June 18 gets clear during the next couple of sessions.
The KSE 100-share index reacted from the overnight highs on active selling in PTCL and leading base shares in the oil sector, off 72.82 points at 7,368.95 as compared to 7,441.77 a day earlier, reflecting the weakness of leading base shares.
A massive activity of 115m shares in PTCL shows that a section of leading investors including some institutional traders have also two opinions about its sell-off and have started to unload their long positions at the current higher levels.
“Rigid positions taken by both the government and the PTCL workers union on the disinvestment of 26 per cent state-owned shares followed by arrest of top union leaders has made its sell-off more difficult”, analysts said.
How the prospective bidders view the developing situation on the PTCL front and their post-privatize perceptions about the unfolding episode will certainly affect the entire sale process, they said.
There is a loud whispering in the market that in the prevailing situation and confrontation it is not advisable to press through the sale of a nation’s profitable entity by using state power.
A sharp decline in its share value after a handsome rise in response to new sell-off date reflects that local brokers and investors have already started to unload their long positions taken at the higher levels fearing that the impending showdown could well mean anything to the entire market, some others fear.
“All eyes are now focused on the PTCL union’s threat to jam the entire system by June 15, if their demands are not fully met including release of their leaders”, says a broker “the state seems to have accepted the workers challenge and vowed to meet the threat and go through the sale process on the new date”.
Although minus signs forced a strong lead over the plus ones, some of the leading shares managed to finish with fresh gains under the lead of BOC Pakistan on reports of higher interim sales, Pakistan Petroleum, Zulfiqar Industries, Mari Gas and Grays of Cambridge, which posted gains ranging from Rs4.10 to Rs14.65. They were followed by Blessed Textiles, Noon Sugar, Pakistan Engineering, Clover Pakistan and some others, up by Rs3 to Rs3.85.
Losers were led by Valika Fabrics, off Rs209 on management selling followed by IGI Insurance, Gatron Industries, and Javed Omer, off Rs14.15. Other prominent losers included Arif Habib Securities, Central Insurance, Gadoon Industries, Sapphire Fibre, Artistic Denim, National Refinery, Dawood Hercules, International Industries, Shell Pakistan, Pakistan Oilfields, National and Pakistan Refinery, which suffered decline ranging from Rs4 to Rs6.35.
Losers, therefore, forced a strong lead over the gainers at 205 to 84, with 35 shares holding on to the last levels. Trading volume was slightly above the overnight level at 196m shares.
PTCL topped the list of actives, off Rs1.95 at Rs69.05 on 115m shares, followed by Pakistan Petroleum, higher by Rs6.10 at Rs208.85 on 20m shares, National Bank, lower by Rs1.65 at Rs99.85 on 17m shares, PSO, off Rs3.45 at Rs374 on 7m shares, Pakistan Oilfields, off Rs5.60 at Rs261.70 on 5m shares and OGDC, lower by Rs1.05 at Rs104.20 on 2m shares.
Other actives were led by D.G.Khan Cement, off Rs2.55 on 4m shares, Sui Southern Gas, up by 20 paisa on 3m shares, Fauji Fertilizer Bin Qasim, lower 70 paisa also on 3m shares and MCB, off Rs1.25 on 2m shares.
FORWARD COUNTER: Speculative issues on the forward counter also fell under the lead of PTCL, off Rs2.10 at Rs69.55 on 26m shares followed by Pakistan Petroleum, higher by Rs2.75 at Rs207.50 on 25m shares and OGDC, lower by Rs1.50 at Rs103 on 10m shares.
United Bank on the other hand maintained its upward drive and was quoted further higher by Rs3.25 at Rs68.25 on 5m shares but PSO fell by Rs3.95 at Rs376 also on 5m shares. Others showed modest fall.
DEFAULTER COS: Trading activity on this counter was relatively slow in the absence of strong demand from any quarter. Ready off-take was light and there was no large turnover in any of the shares.
KARACHI, June 14: Stocks on Tuesday failed to extend the overnight recovery as leading shares attracted selling at the inflated levels under the lead of PTCL, which led the market decline amid conflicting reports about the functioning of the telecom system and union’s threat to jam it on Wednesday.
Losers were led by Valika Fabrics, off Rs209 on management selling followed by IGI Insurance, Gatron Industries, and Javed Omer, off Rs14.15. Other prominent losers included Arif Habib Securities, Central Insurance, Gadoon Industries, Sapphire Fibre, Artistic Denim, National Refinery, Dawood Hercules, International Industries, Shell Pakistan, Pakistan Oilfields, National and Pakistan Refinery, which suffered decline ranging from Rs4 to Rs6.35.
