KARACHI, May 20: Stocks on Friday fell across a broad front as investors indulged in profit-selling in energy shares at higher levels, while institutional traders remained conspicuous by their absence. The market lacked follow-up support and profit-selling at the same time and the both could keep it in a low key until the pre-budget speculative buying makes its presence felt, though on selected counters.
Leading base shares remained under selling pressure at the overnight rise under the lead of PTCL, PSO, OGDC, Pakistan Petroleum, Pakistan Oilfields and some leading bank shares.
The KSE 100-share index, therefore, suffered a fall of 113.61 points at 7,300.09 points as compared to 7,413.70 a day earlier, eroding a good part of the overnight gains. The market capital also fell by Rs30 billion at Rs.2,036bn.
“The last week of the current month and the first week of June are crucial for the future direction of the share business,” analysts said. “Both the months have in their fold sell-off of some mega state-owned units and the national budget.”
The steep increase in the US dollar and Gulf currencies in kerb tells a different story, they say. “But it is pretty difficult to ascertain whether or not money out flowed from the share market.”
Brokers said it could be pre-budget moping operations of the US currency on the perception of some policy changes in regard to dollar-based accounts. It touched the recent high of Rs60.95, up from the average previous rate of Rs60.55 or slightly above.
While the budget is on June 6, the disinvestment of United Bank and PTCL will be on partial sales on June 2 and 10, respectively. Investors are lining up funds after unloading in part their positions on the overvalued counters to have them.
But all eyes are focused on the budget in the backdrop of a loud whispering about the fiscal incentives and a cut in corporate taxes. Some of the leading investors who have links in the corridors of power are also buying those shares, which could be the beneficiary of incentives.
However, there are no “budgetary leaks” so far on which speculative buying could be based by the bargain-hunters, but the next week could witness conflicting rumours and the investors will dance to their tune, brokers said.
Minus signs again held a strong lead over plus ones, leading losers being BOC Pakistan, Ferozsons Lab, Nestle MilkPak, Arif Habib Securities and Siemens Pakistan, which suffered fall ranging from Rs7 to Rs28.95.
Energy shares were led by Attock Petroleum, Pakistan Refinery, PSO, Shell Pakistan, Pakistan Oilfields and PPL, off Rs4.75 to Rs6.75, followed by Crescent Steel, Suzuki Motors, Exide Pakistan and Packages, which suffered fall ranging from Rs4.10 to Rs5.10.
Advancing shares were led by Gadoon Textiles, Pakistan Cables, National Refinery, Artistic Denim, Gatron Industries and Atlas Honda, up Rs2.50 to Rs9.30, but the largest gain of Rs22 was noted in Rafhan Maize.
The trading volume fell further to 205m shares from the previous 232m shares as losers maintained a strong lead over gainers at 171 to 78, with 30 shares holding on to the last levels.
Actively traded shares included PTCL, off Rs1.70 at Rs72.60 on 76m shares, followed by OGDC, easy Rs1.75 at Rs101.75 on 52m shares, PSO, sharply lower by Rs6.75 at Rs380.25 on 16m shares, National Bank, easy Rs2.10 at Rs94.95 on 11m shares, and Sui Northern Gas, up 60 paisa at Rs62.60 on 8m shares.
Other actives included Fauji Fertilizer Bin Qasim, firm by 20 paisa on 8m shares, Pakistan Petroleum, off Rs6.30 on 6m shares, DG Khan Cement, firm by 10 paisa on 5m shares, MCB, lower Rs1.80 on 2m shares and Fauji Fertilizer, off Rs1.80 on 2m shares.
FORWARD COUNTER: PTCL also led the list of actives on this counter, off Rs1.75 at Rs72.70 on 12m shares, followed by OGDC, lower Rs1.65 at Rs101.95 on 5m shares, PSO, easy by Rs6.95 at Rs380.65 on 4m shares, PPL, off Rs5.75 at Rs177.25 also on 4m shares, and Fauji Fertilizer Bin Qasim, up 20 paisa at Rs27.10 on 2m shares. Others were also marked down modestly.
DEAFAULTER COS: For the second session in a row, some of the low-priced shares came in for active support on this counter, leading among them being Unity Modaraba, up five paisa at Rs0.65 (face value Rs10) on 0.288m shares, followed by Asset Investment Bank, higher by 60 paisa at Rs3.95 on 0.223m shares. Some others were also actively traded on the higher side.