KARACHI, Nov 17: Stocks on Thursday remained under pressure and fell on a wider front followed by extended profit-selling on the overvalued counters under the lead of cement and oil shares.
Larger fall was, however, averted as selling was well-absorbed in the decline on the perception that the market could stage a grand rebound after having passed through a technical correction being in a highly overbought position.
After having hit the day’s lowest and the highest at 8,826.10 and 8,917.38 respectively, the KSE 100-share finally finished off 31.66 points at 8,864.02 as compared to 8,895.68 a day earlier.
PTCL shares did not react bullishly to reports of arrival of the Etisalat delegation here for final round of talks with officials of the Privatization Commission to end the prevailing impasse on the deal.
Heavy selling in its share reflects that investors are still in two minds about the completion of the transaction as contenders appear to be poles apart on the real issues, delaying the final settlement.
“There is a loud whispering in the market the bidder is pressing for the concession in the bid price of $1.96 per share to $1.066 per share,” analysts said, adding: “The government could offer a number of other concessions but may not go for a price cut as it will have a negative fallout on its future sell-off programme of the state-owned units.”
PTCL share is currently ruling at Rs63.75 and may attract a massive sell-off if the final round of talks fails and both adhere to their positions.
“I don’t think the market is in for a big shakeout in the backdrop of higher corporate earnings,” predicts a leading stock broker. ”The market has risen more than its near-term technical demands and needs a correction.”
Moreover, the bull-run will remain incomplete if it does not pass through a sell-off, which in technical terms significantly adds to its financial health after evoking a lot of covering purchases at the lower rates, he says.
Among the leading gainers, Lakson Tobacco and Rafhan Maize were prominent, up Rs13.10 and Rs30. They were followed by ICI Pakistan, Ghani Glass, Sitara Chemicals, Callmate Telips, Thal, New Jubilee Insurance, Adamjee Insurance, Jahangir Siddiqui Capital Fund, Mehmood Textiles, Atlas Honda, and Lakson Tobacco, which posted gains ranging from Rs3 to Rs13.10, the largest rise of Rs13.10 being in Lakson Tobacco.
Prominent losers were led by Unilever Pakistan and Wyeth Pakistan, off Rs13 and Rs50, followed by Island Textiles, Attock Cement, Pakistan Refinery, Ferozsons Lab, Berger Paints, Clariant Pakistan, Pakistan Services, Mustehkam Cement, Attock Petroleum and National Refinery, off Rs3 to Rs11.90.
Trading volume fell further to 323m shares from the previous 417m shares as losers maintained a strong lead over gainers at 206 to 142, with 50 shares holding on to the last levels.
Fauji Cement led the list of most actives, higher by Rs1.20 at Rs25.30 on 42m shares, followed by PTCL, off 25 paisa at Rs63.75 on 26m shares, DG Khan Cement, up Rs1.75 at Rs103.35 on 24m shares, PIAC, firm by 40 paisa at Rs11.20 on 23m shares, Telecard, higher by 95 paisa at Rs14.25 on 20m shares, National Bank, off Rs1.10 at Rs166.40 on 19m shares and MCB, lower Rs1.75 at Rs147.65 on 12m shares.
Other actives were led by Bosicor Pakistan, firm 10 paisa on 15m shares, Fauji Fertilizer Bin Qasim, lower 45 paisa on 10m shares and Bank of Punjab, easy by 35 paisa on 9m shares.
FORWARD COUNTER: National bank came in for renewed selling at the inflated levels and fell Rs1.35 at Rs167 on 10m shares followed by PTCL, lower 20 paisa at Rs63.95 on 9m shares, and DG Khan Cement, up Rs1.60 at Rs103.60 also on 9m shares.
Other actives were led by MCB, off Rs1.60 at Rs148.45 on 6m shares, Lucky Cement, up 25 paisa at Rs71.80 on 4m shares and PSO, off Rs2.35 at Rs410.65 on light turnover and so did other pivotals.
DEFAULTER COS: Unity Modaraba was modestly traded, but ended lower by five paisa at Rs0.70 on 0.124m shares, while others lacked normal trading interest.
Among the prominent losers, Standard Crescent Bank, Suzuki Motorcycles, Morafco and Ghandhara Industries were leading, which suffered fall ranging from one rupee to Rs3. Metropolitan Steel was an exception, which rose by one rupee at Rs14.30 on 48,000 shares.
