Dullness prevails on stock market on eve of LB polls
By Our Staff Reporter
KARACHI, Aug 17: Trading volume on the stock market on Wednesday fell to a three-year low at 36m shares as investors kept to the sidelines most of the time fearing law and order situation in Thursday’s Local Bodies polls.
Low volume reflects investor perceptions about the developing situation on the market crash of last March and its negative impact on future stock trading. Apart from Local Bodies polls, the market sentiment was also influenced bearishly by a loud whispering from the National Assembly probe committee blaming both the SECP and some leading brokers for the March market crash.
The National Assembly Standing Committee on Finance has already started scrutiny of the SECP probe report on the market crash and has in its initial findings blamed both the SECP and a number of brokers behind the market plunge.
“A perfectly sound market aided by economic takeoff and higher corporate earnings has been turned into gambling den as nobody is sure what is next in store”, analysts said.
Low single-session volume reflects that leading brokerage houses are awaiting some positive developments on COT front before resuming their normal market operations, they added.
Although the government has taken steps to avert any ugly situation on the law and order front, a section of leading investors including institutional traders decided to play safe and did not take bigger stake even on the blue chip counters at the lower levels.
After initial modest rise on active short-covering in PTCL and OGDC and some other leading base shares, the KSE 100-share index finished with a modest decline of 39.87 points at 7,099.22 as compared to 7,139.09 a day earlier.
Brokers say although the index is steadily holding above the barrier of 7,000 points but developing situation on the March crash is expected to give further shocks in the form of financial losses in the coming weeks.
Meanwhile, the KSE is planning to introduce sensitive index based on 30 most liquid scrips on the free float basis. The step is in line with the global trend where major indices have switched over to free float mechanism.
Minus signs, therefore, again dominated the list under the lead of Lakson Tobacco and Island Textiles, off Rs9 and Rs11.10. Other prominent losers included Arif Habib Securities, Premier Sugar, Clover Pakistan, Shell Pakistan and Berger Paints, which suffered fall ranging from Rs4.20 to Rs6.
Some of the leading shares notably Allied Bank and Parke-Davis rose by Rs32.40 and Rs140 owing to pressure on floating stock. They were followed by Artistic Denim, Atlas Battery, HinoPak Motors, Thal Jute, National Foods and Unilever Pakistan, up by Rs3.05 to Rs17.
Trading volume fell to 36m shares as losers maintained a strong lead over the gainers at 157 to 98, with 36 shares holding on to the last levels.
PTCL was again actively traded, lower 45 paisa at Rs61.15 on 6m shares followed by OGDC, off Rs1.10 at Rs101.55 on 5m shares, National Bank, up by 30 paisa at Rs99.65 on 3m shares, Bank of Punjab, easy by 10 paisa at Rs82.10 also on 2m shares and Pakistan Petroleum, lower 60 paisa at Rs159.55 on 2m shares and MCB, higher by 40 paisa at Rs87.40 also on 2m shares.
Other actives included Union Leasing, lower 60 paisa on over 1m shares, PICIC, off 80 paisa on 1m shares, Pakistan Oilfields, lower Rs2.40 also on 1m shares and Fauji Fertilizer Bin Qasim, unchanged also on 1m shares.
FORWARD COUNTER: OGDC led the list of actives on this counter, off Rs1.10 at Rs101.75 on 5m shares, Pakistan Oilfields, lower Rs1.30 at Rs159.65 also on 5m shares and PTCL, off 50 paisa at Rs61.30 on 3m shares.
Other actives included National Bank, up by 20 paisa at Rs99.90 on 2m shares, MCB, higher by 60 paisa at Rs87.85 on 1m shares and some others were fractionally traded lower.
DEFAULTER COS: Trading on this counter remained dull in the absence of leading investors. Price changes were fractional amid low volumes. Taxila Engineering and Hala Enterprises were higher by 90 paisa and Re1 at Rs4.40 and Rs6.10, while Suzuki Motorcycles fell by Re1 at Rs13.10 on 7,000 shares.
BOARD MEETINGS: International General Insurance, Singer Pakistan on Aug 23, KSB Pumps on Aug 24, Pakistan Refinery on Aug 25, New Jubilee Life Insurance on 26 and National Bank on Aug 27.
KARACHI, Aug 17: Trading volume on the stock market on Wednesday fell to a three-year low at 36m shares as investors kept to the sidelines most of the time fearing law and order situation in Thursday’s Local Bodies polls.
Meanwhile, the KSE is planning to introduce sensitive index based on 30 most liquid scrips on the free float basis. The step is in line with the global trend where major indices have switched over to free float mechanism.
