KARACHI, April 5: Stocks remained under pressure on Friday but managed to finish well above the day’s lowest levels thanks to active short-covering in FFC-Jordan Fertilizer and some other low-priced shares having potential of capital appreciation. The KSE index was off 2.72 points at 1,850.18.

There could be more than one reasons behind the market’s current erratic movements but non-absorption of a big floating stock appears to be most pressing followed by uncertainty associated with the presidential referendum.

Stock analysts at the Ali Husain Rajabali Securities claim a massive floating stock of about 8 billion shares is in the hands of weakholders and in the absence of matching support from the institutional traders they play on both sides of the market keeping it unsettled.

There was no trace of the overnight selling in the low-priced FFC-Jordan Fertilizer, which fell after the news of an accumulated loss of Rs3.219bn as investors covered positions at the lower levels.

“Unconfirmed reports claim a big rescue financial package is on the card for the FFC-Jordan Fertilizer, which seems to be main supporting factor behind its current run-up despite huge losses”, says a stock analyst at Moosani Securities adding “talk of its merger with the Fauji Fertilizer also generated a good bit of short-covering in it”.

The KSE 100-share index early was off 15 points on early weekend selling but managed to wipe out most of the losses thanks to active short-covering in pivotals as well some second-liners. It finally ended lower by 2.72 points at 1,850.18 as compared to 1,852.90 a day earlier amid reduced turnover of 115m shares.

Floor brokers said investors are certainly worried over the post-referendum political scenario and weaker links among them have already curtailed the daily operations.

The relative sluggishness in part was also attributed to President’s speech later in the evening apparently on the issue of referendum and weekend considerations being another inhibiting factor.

However, both the bank of Punjab and FFC-Jordan Fertilizer came in for active short-covering at the overnight levels and ended with good rallies, generating stray sympathetic support on other counters.

Some of the leading shares also came in for active buying at the lower levels indicating that the bulls will be back in the market possibly by the next week.

Textile shares led the market resistance to larger declines on support aided by rising export prospects owing to some concessions by the US and EU. Ayesha Textiles, Bhanero Textiles, Blessed Textiles, Farooq Habib Textiles and Faisal Spinning were leading among them, risingby Rs1.50 to Rs3.

Other good gainers were led by Kohat Cement, Pakistan Tobacco, Syed Match, Lever Brothers, Jahangir Siddiqui & Co, and Javed Omer, which posted gains ranging from Rs1.20 to Rs2.75.

Losses on the other hand were mostly fractional and reflected lack of support rather than selling. Singer Pakistan, Al-Ghazi Tractors, Alico, Mari Gas, Indus Jute and Adamjee Insurance were leading among them falling by one rupee to Rs2.10, but the largest decline of Rs20.60 was noted in Fateh Textiles, which has, during the last three weeks, fallen by Rs150 without matching ready business.

Trading volume fell to 115m shares from the previous 158m shares as losers maintained a fair lead over the gainers at 127 to 100, with 50 holding on to the last levels.

FFC-Jordan Fertilizer led the list of most actives, up 50 paisa at Rs7.60 on 22m shares, Hub-Power, lower 15 paisa at Rs23.85 on 20m shares, PTCL easy also by the same amount at Rs18.85 on 18m shares, Bank of Punjab up 85 paisa at Rs13.40 on 11m shares and PSO, lower 40 paisa at Rs155.60 on 9m shares.

Other actives included Sui Northern, easy 10 paisa on 6m shares, Dewan Salman, off 25 paisa on 5m, ICI Pakistan, lower 30 paisa on 4m shares, Engro Chemical, up 50 paisa on 3m shares and Pakistan PTA, lower 10 paisa also on 3m shares.

FUTURE CONTRACTS: Most of the leading shares on this counter fell under the lead of Hub-Power, off 20 paisa at Rs24.05 on 4.554m shares followed PSO, easy 45 paisa at Rs157 on 2.628m shares, PTCL, easy 15 paisa at Rs19 on 1.632m shares and FFC-Jordan Fertilizer, up 45 paisa at Rs7.05 on 1.110m shares.