KARACHI, Nov 5: The KSE 100-share index on Wednesday plunged 112 points on active selling in PTCL followed by reports of cut in its line rent and call rates and sympathetic unloading in other leading base shares notably PSO.

It not only shed the overnight smart rise of 74 points, but also lost further ground on heavy selling prompted by the perception of lower EPS and annual profits. PSO also a good part of the gains netted during the last two sessions and fell sharply lower and so did Hub-Power and PTCL.

The market’s nervousness may well be gauged by the massive plunge of 111.88 points at 3,755.67 in the KSE 100-share index, wiping out its overnight run-up and pushing it new lows for the last several months.

Market capital also suffered a decline of Rs21.062bn at Rs798.847bn as compared to Rs819.909bn a day earlier.

“Having a weightage of 33 per cent in the index, any bigger fall in PTCL for some negative profit outlook, its decline weighs heavily against the underlying sentiment as it evokes sympathetic selling in other leading base shares,” brokers said.

Because of its size and weightage, it is capable of taking the entire market along with it in the minus column followed by reports of any negative projections about its profit, they said, adding “fresh heavy liquidation in PSO, Hub-Power and some other pivotals accelerated the market decline.”

There was, therefore, no trace of the overnight robust rally as investors, including institutional traders, hastened to get out of the market awaiting next official moves on PTCL.

The total impact of the recent tariff reliefs to the general consumers on the PTCL annual profits will be to the tune of Rs5.5 billion, which in turn will lower the EPS by 60 to 70 paisa from the previous year’s Rs4.53 per share.

“PTCL’s recent tariff rebalancing exercise finally looks to be complete,” says a leading analyst commenting on its relief package for the year to its consumers. “The ruling elite may have some political and social motives behind these reliefs to win the public mandate.”

Analysts at a leading brokerage house has revised PTCL annual profit from the previous projections after incorporating the current tariff reliefs and put a safe figure of Rs23 to 24 billion as compared to the previous estimate of over Rs30 billion.

Reports from the Privatization Commission were encouraging as apart from expressions of interest by five companies to buy the controlling shares of KESC, much headway has been made on the sell-off of Habib Bank and further partial liquidation of National Bank shares.

The biggest fall of Rs12.85 was reported in PSO followed by PTCL, Hub-Power, and some other current favourites, notably energy and auto shares.

Unilever Pakistan followed it, off Rs65. Other leading losers were led by BOC Pakistan, Pak-Suzuki Motors, Indus Motors, Al- Ghazi Tractors, Shell Pakistan, Javed Omer, Lakson Tobacco, Island Textiles and Pakistan Oilfields, which suffered fall ranging from Rs4 to Rs9.20.

Gainers were led by Gillette Pakistan, Ghani Glass, Pakistan Gum Chemicals, Glaxo-SKF and National Refinery, up Rs2.25 to Rs8.45. General Tyre, Ahmed Hassan Textiles, Trust Leasing, Orix and Natover Leasing rose by Rs1.45 to Rs2.

Trading volume further rose to 179m shares from the previous 162m shares but losers again forced a strong lead over the gainers at 158 to 96, with 29 shares holding on to the last levels.

The most active list was topped by D.G. Khan Cement, off Rs1.95 at Rs37.40 on 32m shares followed by Hub-Power, lower by Rs1.15 at Rs33.70 on 25m shares, PTCL, off Rs1.65 at Rs32.10 on 20m shares, FFC-Jordan Fertilizer, easy one rupee at Rs16.90 on 17m shares and PSO, sharply lower by Rs12.85 at Rs245.05 on 10m shares.

Other actives were led by Bosicor Pakistan, steady 10 paisa on 8m shares, Fauji Cement, off 75 paisa on 7m shares, Maple Leaf Cement, lower Rs1.20 on 6m shares, Pakistan Oilfields, off Rs9.20 on 5m shares and T.R.G Pakistan, up 35 paisa also on 5m shares.

FORWARD COUNTER: Hub-Power led the list of actives, off Rs1.15 at Rs33.75 on 9m shares followed by PSO, sharply lower by Rs12.90 at Rs245.10 on 9m shares, PTCL, lower Rs1.70 at Rs32.30 on 8m shares, FFC-Jordan Fertilizer, easy one rupee at Rs17 on 5m shares and ICI Pakistan, lower 60 paisa at Rs71.60 on 0.813m shares.