KARACHI, June 22: Stocks on Wednesday suffered fresh decline under the lead of PTCL and oil shares as investors were not inclined to take fresh positions for no apparent bearish reason.
There were, therefore, no signs of PTCL-driven rally as the telecom company itself attracted a lot of post-privatization selling and dragged other blue chips along with it in the minus column.
The shrinkage of the turnover figure to a meagre total of 170m shares reflects some rethinking on the market’s future direction. What was more disturbing was the absence of institutional traders, which in sluggish period revive investors’ interest at the dips.
The KSE 100-share index shed another 80.64 points at 7,409.07 as compared to 7,489.71 a day earlier, as leading base shares, notably PTCL, OGDC, Pakistan Petroleum and National Bank remained under pressure and fell further.
Selective buying, however, emerged strong aided by heavy buying in Pakistan State Oil (PSO), followed by reports that its sell-off date will be announced shortly after having consultation with seven short-listed bidders.
But settlement worries were there as in the absence of rollover facility because of margin financing instead of badla, brokers have to clear their outstanding positions in the expiring June contracts and that factor has attracted a lot of selling for the second day in a row to line up funds.
After the smooth transaction of PTCL late last week at the highest rate of $1.96 per share, the Privatization Commission appears to be in a bit hurry to complete its disinvestment programme during the current year, brokers said.
The privatization-driven market should have responded to the objective conditions, one analyst said. “But today’s (Wednesday) T-bills auction and fears of an increase in yield rates was said to be another inhibiting factor.”
Apart from PSO, the other state-owned mega units on the list are OGDC, Pakistan Petroleum and National Investment Trust, which will give a needed depth to the market.
Minus signs again dominated the list under the lead of Mari Gas and Artistic Denim, off Rs9.85 and Rs9.75, respectively. Gatron Industries, Berger Paints, PNSC, Shell Pakistan, Pakistan Cables, National Refinery, Pakistan Petroleum and Mehmood Textiles followed them, off Rs3 to Rs6.
Prominent gainers were led by Jahangir Siddiqui & Co, Gillette Pakistan, Crescent Steel, Dawood Hercules, EFU General, Zulfiqar Industries and Unilever Pakistan, which posted gains ranging from Rs2.55 to Rs17.
Losers outpaced gainers by a big margin of 168 to 94, with 40 shares holding on to the last levels.
The trading volume fell to 170m shares, out of which PTCL, off Rs1.60 at Rs66.95, alone accounted for 47m shares.
Other actives were led by OGDC, off Rs1.15 at Rs103.60 on 24m shares, DG Khan Cement, lower Rs1.70 at Rs56.40 on 15m shares, PSO, up 50 paisa after early rising to Rs391.80 at Rs384.75 on 14m shares, Pakistan Petroleum, off Rs5.25 at Rs214.50 also on 14m shares, and National Bank, easy Rs1.50 at Rs103 on 11m shares.
Other volume leaders included Attock Petroleum, off Rs1.50 on 7m shares, PICIC Growth Fund lower 45 paisa on 6m shares, Lucky Cement, up 80 paisa on 4m shares and Fauji Cement, easy 30 paisa on 3m shares.
FORWARD COUNTER: Settlement worries dominated trading on this counter as June contracts will be rung off the board during the next couple of sessions and investors would have to square positions in the absence of rollover facility. And that triggered selling.
Both the June and July contracts of PTCL fell by Rs1.80 and Rs2 at Rs67.10 and Rs68.25, respectively, on 13m and 10m shares, followed by Pakistan Petroleum, off Rs6.15 at Rs214.85 on 10m shares, OGDC, lower Rs1.70 at Rs103.55 on 8m shares and PSO, off Rs2.50 at Rs384.00 on 6m shares.
DEFAULTER COS: Stray business was recorded on a number of counters but prices mostly fell fractionally on renewed selling. There were no big deals as investors indulged in alternate bouts of buying and selling.
KARACHI, June 22: Stocks on Wednesday suffered fresh decline under the lead of PTCL and oil shares as investors were not inclined to take fresh positions for no apparent bearish reason.
The privatization-driven market should have responded to the objective conditions, one analyst said. “But today’s (Wednesday) T-bills auction and fears of an increase in yield rates was said to be another inhibiting factor.”
