KARACHI, Oct 13: Stocks on Monday suffered widespread decline as investors sold their long positions in the overvalued shares apparently in an effort to raise funds to invest in the National Bank issue. The KSE 100-share index fell 57 points at 4,086.53.

But some others said the official’s silence over the final bidding date for the privatization of PSO was one of the chief reasons behind the dullness.

“The fresh price flare-up in cotton which could have a chain of negative impact on all the counters, including exports, owing to reports of a short crop also took its toll, notably on the textile counter,” they said. Cotton prices again rose to Rs3,200 per maund after having fallen to Rs2,800 on Saturday last.

Energy and auto shares also received massive battering as investors took profits at the inflated levels fearing further decline in prices.

The opening was, however, on the higher side as both the KSE 100-share index and the leading shares earlier tended higher on active short-covering but later selling pushed them into the minus column.

The third tranche of National Bank shares opened for public subscription from October 13 to 15 at Rs46.00 per share of Rs10, which is billed at a discount as compared to its market rate. The management has offered 3.2 per cent or 13.131m shares to general investors and financial institutions under the government’s privatization policy.

“The initial investor response to the offer appears to be a bit encouraging as its opening has taken steam out of the market at least for the near-term,” analysts said.

The partial sell-off of the state-owned units by the end of the current month may well remain a major bait for the investors, having a negative impact on physical trading on the stock market, they said.

The terrible sluggishness was also well-reflected in an erratic movements of the KSE 100-share index, which after earlier rising smartly breached through the crucial barrier of 4,000 at 4,086.53, off 56.81 points. The market capital also fell by Rs11.017bn at Rs893.101bn.

Traded volume fell to a modest proportions below the 200m share mark as both retailers and leading financial traders remained busy with the National Bank issue.

Floor brokers said no official word on the sell-off of the controlling shares of PSO despite reports of a meeting of official Kuwait Petroleum Company, one of the three short-listed bidders, with the privatization minister also worked against the sentiment. Its share value fell by Rs8.75 at Rs288.50.

“The market may remain victim of slack demand during the next couple of sessions also as leading investors will remain busy with the Oil and Gas Development Company’s offer of 215m shares at Rs32 after National Bank,” they added.

The sell-off was widespread and covered the entire list, overvalued shares being in the forefront of losers, notable among them being Nestle MilkPak and Javed Omer, off Rs10 and Rs14.05, respectively.

Other prominent losers were led by Island Textiles, Burewala Textiles, Fateh Textiles, Fazal Textiles, Pakistan Cables, Pak-Suzuki Motors, Shell Pakistan, Pakistan Refinery, Pakistan Oilfields and PSO, which suffered fall ranging from Rs4 to Rs9.50, the largest being in PSO and Fateh Textiles.

Reckitt and Benckiser were leading among the gainers, up Rs5.85 and Rs11 followed by 2nd ICP, Murree Brewery, Security Papers, National Refinery, Haroon Oils and Zeal-Pak Cement, up by Rs2.05 to Rs4.95, while others rose mostly fractionally in the absence of aggressive support.

Trading volume fell to 147.770m shares from the previous 207m shares as losers maintained a strong lead over the gainers at 226 to 79, with 31 shares holding on to the last levels.

Dewan Salman was actively traded, up 60 paisa at Rs19.40 on 26m shares, PSO, off Rs8.75 at Rs287.25 on 24m shares, Hub-Power, lower 95 paisa at Rs36.05 on 18m shares, Maple Leaf Cement, up Rs1.75 at Rs25.50 on 10m share, MCB, off Rs1.40 at Rs50.40 on 9m shares and PTCL, easy 50 paisa at Rs37.35 on 8m shares.

Other actives were led by Pakistan Oilfields, off Rs7.95 on 5m shares, Pak PTA, lower 70 paisa also on 5m shares, Lucky Cement, easy 40 paisa on 4.511m shares and PIAC, higher 30 paisa on reports that its share will not be delisted from the KSE, on 4m shares.

FORWARD COUNTER: Speculative issues also followed the lead of their counterparts in the ready section and fell sharply lower under the lead of PSO, off Rs8.35 on 13m shares followed by MCB, easy Rs1.70 at Rs50.25 on 3m shares.