KARACHI, May 12: Stocks on Thursday fell across-the-board on heavy selling in the oil giants triggered by reports of three per cent fall in world oil prices and its likely negative fallout on their profit margins. It was a long-term perception and in between oil prices could fluctuate either way but bears made it look an immediate destabilizing factor and indulged in hasty selling in the overvalued energy shares.

After early rising to 7,563.12, the KSE 100-share index also received a massive battering as leading base shares came in for active profit-selling at the inflated levels under the lead of PTCL on rumours of delay in its bidding.

It ended the day with loss of 213.67 points at 7,284.05 as compared to 7,497.62 a day earlier as all leading base shares fell sharply. The market capital also suffered a fall of Rs55 billion at Rs2,043 billion from the previous Rs2,097 billion.

Fresh modest increase in T-bill cut-off yield may have some relevance to the snap reversal but it appears to be an inspired move to halt the market rise but could hardly be sustainable bearish factor, some brokers said adding “fall in world oil prices also triggered selling in the local oil giants including PSO, OGDC, Pakistan Petroleum and some others”.

There was no disturbing news from the corporate or SECP fronts, however conflicting statements about the changing political scenario may have some negative fallout on the investor enthusiasm, analysts said.

But some others said investors seem to be working on the recently designed operational strategy of playing safe in an uncertain market, which is still entangled between the issue of badla or margin financing and the consequent pressure on liquid funds.

The crash from the day’s peak level of 7,563.12 to 7,284.05, a fall of 213.67 points reflects index’s high volatility as well as potential to rise to any high on the strength of leading base shares.

However, the last three sessions’ gains were not fully wiped out and in a way it maintained a steady posture amid hopes that the week would closed on a higher note.

The sell-off was led by PTCL, which was massively traded on the lower side as it did on the higher side during the last three sessions on news of bidding to sell its controlling shares to one of the short-listed companies before June. Earlier rising to day’s high of Rs72.50 on active follow-up support, it fell to finish slightly above the lowest for the day at Rs68.20 on 224m shares.

The rest was a repeat story as investors sold hastily in other pivotals without ascertaining the reasons behind the snap sell-off, reinforcing the idea of intra-day trading.

Minus signs dominated the list under the lead of Atlas Petroleum, Shell Pakistan, PPL, OGDC, Mari Gas, Pakistan Refinery and PSO, off Rs4.25 to Rs19, the largest fall of Rs19 being in PSO.

Gainers were led by Parke-Davis, up by Rs68 followed by Murree Brewery, Suzuki Motors, Al-Abbas Sugar, and National Refinery, which rose by Rs3 to Rs4.50. Other prominent losers included Millat Tractors, Siemens Pakistan, Nestle MilkPak, and Artistic Denim, off Rs5 to Rs11.

Trading volume soared to 515m shares from the previous 466m shares. OGDC was another actively traded share, off Rs4.35 at Rs97.95 on 127m shares, Pakistan Oilfields, lower Rs3.25 at Rs274.25 on 28m shares, National Bank, off Rs3.35 at Rs95.25 on 23m shares, PSO, sharply lower by Rs19 at Rs373.90 on 21m shares, Pakistan Petroleum, easy by Rs9.50 at Rs181.10 on 8m shares and PICIC Growth Fund, up by Rs2.45 at Rs55.50 on 10m shares.

Other actives were led by D.G.Khan Cement, off Rs2.20 on 17m shares, Sui Northern Gas, easy 95 paisa on 14m shares, and MCB, off Rs3.90 on 8m shares.

FORWARD COUNTER: PTCL also came in for strong selling on this counter and fell by Rs2.60 at Rs68.80 on 24m shares followed by OGDC, lower Rs4 at Rs98.75 on 12m shares and PSO, fell by Rs19.20 at Rs374.75 on 5m shares.