KARACHI, Aug 9: Stocks on Tuesday remained under pressure and fell across the board on renewed selling in the leading oil shares as negative rumours, which followed in quick succession, did not allow investors to take positions at the dips. The KSE 100-share index was off 131 points at 7,184.48 points.
The badla issue remains unresolved so far but seems to have been pushed into the secondary position. The major concern of the KSE now appears to be the verification of pre-trade transactions. As its implementation deadline of Aug 24 is coming near, the KSE is not ready owing to some technical problems in its IT system and seeks extension up to Sept 12, which in turn generated fresh selling by implication.
The KSE 100-share index shed another 130.99 points at 7,184.48 as compared to 7,315.47 a day earlier, reflecting a decline of 3.25 per cent on Tuesday wiping out another Rs35.002 billion from the market capital at Rs2,045.835 billion. Total capital loss during the last two sessions stood at Rs60 billion.
Bulk of the selling was again confined to PTCL, National Bank and oil shares including OGDC, Pakistan Petroleum and Pakistan Oilfields despite reports of a record rise in world oil prices. A one-rupee fall in OGDC share value means 16 points erosion from the index because of its 22 per cent weightage in it.
Analysts said the working relationship between the SECP high-ups and the KSE was not that ideal owing to difference of opinion on some regulatory steps but that didn’t mean an open war.
“Both the SECP and KSE want a robust stock market but with certain control to check undue speculation and to protect the interest of small investors”, they said “trouble-shooters are there to raise the dust as the prevailing one”.
The rumour-mongers now appeared to be in full control of stock trading and coin rumours, which suits them but keep bulls on the toes all the time.
Viewed in the backdrop of economic recovery, higher corporate dividend and fiscal incentives to boost productivity and export, the market has more than one reasons to be robust but the rumours which are following in quick succession did not allow the stabilizing forces to set a normal course for the market to follow.
Some of the inactive shares rose, while blue chips generally fell under the lead of Arif Habib Securities and AKD Securities, off Rs13.85 and Rs18 respectively. Other prominent losers were led by Ferozsons Lab, Atlas Honda, HinoPak Motors, Mari Gas, Artistic Denim, Javed Omer and IGI Insurance, off Rs5 to Rs13.
Gains were mostly fractional barring Pakistan Services, which rose by Rs8 followed by Dewan Khalid Textiles, Premier Sugar, Bestway Cement, and some others, up by Rs2.20 to Rs2.60.
Trading volume shrank further to 138m shares from the previous 194m shares as gainers trailed far behind the losers at 57 to 206, with 40 shares holding on to the last levels.
PTCL remained under pressure and shed another Rs1.55 at Rs60.65 on 53m shares followed by OGDC, off Rs2.75 at Rs101.30 on 26m shares, National Bank, easy 25 paisa at Rs106.85 on 11m shares, Pakistan Petroleum, off Rs5.80 at Rs165.20 on 7m shares, Pakistan Oilfields, lower Rs2.70 at Rs304.50 also on 7m shares, MCB, lower Rs1.10 at Rs89 on 3m shares, Fauji Fertilizer Bin Qasim, off 80 paisa at Rs30.10 on 6m shares.
Other actives were led by Pak PTA, lower 30 paisa on 4m shares, D.G.Khan Cement, off Rs1.70 on 3m shares and Hub-Power, easy five paisa also on 3m shares.
FORWARD COUNTER: PTCL remained under pressure and fell by Rs1.55 at Rs61.05 on 28m shares followed by OGDC, off Rs2.80 at Rs102.10 on 24m shares, and Pakistan Petroleum, lower Rs6.10 at Rs166.15 on 20m shares.
Pakistan Oilfields followed them, off Rs2 at Rs307 on 4m shares and Fauji Fertilizer Bin Qasim, lower 80 paisa at Rs30.45 also on 4m shares. Others were modestly traded on the lower side.
DEFAULTER COS: Trading on this counter was light in the absence of demand from the leading investors and as a result prices showed either-way minor changes.
DIVIDEND: Pakistan Tobacco, interim cash at the rate of 25 per cent.
BOARD MEETINGS: United Insurance, Crescent Commercial Bank, on Aug 13, Soneri Bank, Aug 16, Clover Pakistan, Aug 18, Union Bank on Aug 24, Crescent Leasing on Aug 25, and Pakistan Petroleum on Aug 27.
KARACHI, Aug 9: Stocks on Tuesday remained under pressure and fell across the board on renewed selling in the leading oil shares as negative rumours, which followed in quick succession, did not allow investors to take positions at the dips. The KSE 100-share index was off 131 points at 7,184.48 points.
Some of the inactive shares rose, while blue chips generally fell under the lead of Arif Habib Securities and AKD Securities, off Rs13.85 and Rs18 respectively. Other prominent losers were led by Ferozsons Lab, Atlas Honda, HinoPak Motors, Mari Gas, Artistic Denim, Javed Omer and IGI Insurance, off Rs5 to Rs13.
