KARACHI, May 18: Active profit-selling on Wednesday in PTCL and some leading energy shares again pushed the market in the minus column, but unlike the previous sessions there were buyers at dips, pointing to a technical rebound on Thursday (today). However, it was a relative weakness of PTCL after a sustained run-up during the last couple of sessions, which weighed heavily against the underlying sentiment, brokers said.
The KSE 100-share index suffered a fall of 89.89 points at 7,348.60 as compared to 7,437.95 a day earlier, reflecting the profit-selling in PSO, PPL and some others. PTCL has assumed the role of trend setter after the announcement of its final bidding date on June 10, and soared to Rs76.05 amid heavy daily volumes during the last couple of sessions.
“It has risen from Rs58 some two weeks ago to Rs76 and needs a technical correction to resume its upward journey,” some analysts said. “There is nothing wrong with its basic financial fundamentals as far as its potential price level prior to the disinvestment is concerned.”
But prior to it, the Privatization Commission has announced the date of disinvestment of five per cent shares (with green-shoe option of an identical amount) of United Bank in the lot of 200 shares costing Rs10,000. The smaller lot has been fixed to net as many small investors as it could.
Some floor brokers said partial selling in PTCL might have been caused by a section of investors to line up funds for the United Bank shares, which at Rs50 per share could be a good future investment for small investors.
Although market apparently ignored an 8.35 per cent increase in GDP growth, 16 per cent increase in the large scale industrial production for the time being are positive signals from the recovering economy and could manifest themselves in the share business subsequently, they said.
“No one is inclined to think that the current run-up is overdone,” the analysts said. “The market is in a grand rebound, which may manifest itself after the market has met its technical demands.”
Much of the activity again remained confined to PTCL, followed by energy shares, and some current actives in bank and cement sectors amid either-way price movements.
Minus signs again dominated the list under the lead of energy shares, notably PSO, Mari Gas, Pakistan Oilfields, and National Refinery, off Rs4.50 to Rs13.50, followed by Faisal Spinning, Indus Motors, Abbott Lab, BOC Pakistan, Murree Brewery, Attock Cement and Artistic Denim, which suffered fall ranging from Rs3.25 to Rs10.20.
Some of the leading shares managed to finish higher, major gainers among them being Noon Pakistan, AKD Securities, Nestle MilkPak, Arif Habib Securities and Siemens Pakistan, which rose by Rs9.40 to Rs31.95. Clover Pakistan, Millat Tractors and Gatron Industries, also posted gains ranging from Rs3 to Rs6.25.
Trading volume fell to 342m shares from the previous 397m shares as losers forced a strong lead over gainers at 202 to 85, with 37 shares holding on to the last levels.
PTCL again topped the list of actives, off Rs2.75 at Rs73.30 on 147m shares followed by OGDC, up 10 paisa at Rs101.55 on 74m shares, PSO, off Rs5.10 at Rs378.25 on 17m shares, Sui Northern Gas, lower Rs2.05 at Rs60.20 on 14m shares and Pakistan Petroleum, off Rs1.90 at Rs179 on 11m shares.
Other actives were led by National Bank, lower 70 paisa on 10m shares, DG Khan Cement, off Rs1.40 on 8m shares, MCB, up 60 paisa on 7m shares, PICIC Growth Fund, off 75 paisa on 6m shares and Pakistan Oilfields, off Rs4.45 on 4m shares.
FORWARD COUNTER: All the leading and most active shares followed the lead of their counterparts in the ready and fell sharply under the lead of PTCL, off Rs2.35 at Rs73.85 on 26m shares followed by PPL, lower Rs1.15 at Rs180.85 on 7m shares and OGDC, firm by five paisa at Rs101.85 on 6m shares.
PSO came in for active selling was marked down by Rs3.20 at Rs379.80 on 5m shares followed by Sui Northern Gas, easy by Rs2.15 at Rs60.30 on 3m shares. Others also fell fractionally on stray selling.
DEFAULTER COS: Barring Unity Modaraba, which came in for modest support and was quoted unchanged at Rs0.60 on 0.101m shares, all others shares were modestly traded amid alternate bouts of buying and selling.
DIVIDEN: Exide Pakistan, cash 10 per cent, previous 30 per cent.
BOARD MEETINGS: Arif Habib Securities on May 20; Prosperity Weaving, Ellcot Spinning, Nagina Cotton, Crescent Boards, and Faran Sugar on May 23; Ansari Sugar, Sakrand Sugar, Baig Spinning, Shaheen Cotton, Shahzad Textiles and Dar-es-Slaam Textiles on May 2; Babri Cotton, Shakargang Mills, Nishat (Chunian), and Ibrahim Fibre on May 25.