Although advancing shares managed to hold a fair lead over losing ones, a considerable decline in the traded volume reflects leading investors, notably financial institutions, did not fully participate in the proceedings apparently for weekend considerations or new turn taken by the badla issue after the KSE initiative.
The KSE 100-share index posted a fractional fall of 0.13 points at 7,588.94 points as compared to 7,589.07 a day earlier, reflecting the weakness of leading base shares. The opening was higher on spillover demand.
There were strong mid-week rumours that the official decision on the parallel badla market is expected any time. Investors were a bit surprised on reports that the KSE has just drafted a memo on the issue and demand of the brokerage houses, as most of them are not happy with bank margin financing at least for the near-term owing to allied procedural problems.
Investors, who have been expecting the SECP decision on the parallel badla market in the backdrop of weeklong rumours, were a bit disappointed on reports that the KSE high-ups have decided to request the regulatory chief to allow badla and margin financing go side by side until December to easy pressure on liquidity.
The perception whether or not the SECP obliges the bourse chiefs seems to have created uncertainty, slowing down the badla-related snap rally spread over the entire week, analysts said.
“The bourses’ request for the extension in badla financing could well lead to another long drawn tussle between the two, having a negative impact on stock trading,” they said.
A number of banks, including National Bank, United Bank and Union Bank, have already announced that they have started margin financing under the central bank’s allocation of Rs30 billion.
Pakistan Petroleum, Pakistan Oilfields, Attock Petroleum and National Bank were in the forefront of advancing issues on active short-covering, but PTCL and some other market leaders remained under pressure on late weekend selling.
Valika Art Fabrics topped the list of gainers, up Rs148. The price flare-up was caused owing to the shortage of floating stock. Attock Refinery, HinoPak Motors, Attock Petroleum, Nestle MilkPak, and Mari Gas followed it, up by Rs3.95 to Rs10.55.
Losers were led by Zulfiqar Industries, BOC Pakistan, Millat Tractors, Gatron Industries, Artistic Denim and Atlas Honda, off Rs3.50 to Rs14. Unilever Pakistan fell by Rs42 on selling at the higher levels.
Trading volume fell to 173m shares from the previous 213m shares as gainers held a strong lead over losers at 137 to 102, with 33 shares holding on to the last levels.
PTCL came in for active selling at the higher levels and fell by Rs1.10 at Rs64.20 on 28m shares followed by National Bank, up Rs1.10 at Rs109.30 on 26m shares, OGDC, lower 25 paisa at Rs108.75 also on 26m shares, Pakistan Oilfields, up Rs1.40 at Rs298.40 on 12m shares, Pakistan Petroleum, higher by Rs2.45 at Rs223 on 10m shares, DG Khan Cement, easy 25 paisa at Rs58.50 on 8m shares and PSO, higher by 70 paisa at Rs385.20 on 5m shares.
Other actives were led by Nishat Mills, steady 25 paisa on 8m shares, Nimir Chemicals, up one rupee on 7m shares, and Kot Addu Power, firm by 25 paisa on 6m shares.
FORWARD COUNTER: Pakistan Petroleum again came in for active support and rose by Rs2.90 at Rs225 on 18m shares, followed by PTCL, lower 90 paisa at Rs64.95 on 11m shares, and OGDC, easy 30 paisa at Rs109.70 on 9m shares.
Pakistan Oilfields led the list of other actives, up 75 paisa at Rs300.75 on 7m shares and National Bank, higher by Rs1.75 at Rs110.75 on 6m shares. Others showed mixed trend amid light trading.
DEFAULTER COS: Crescent Standard Bank again came in for active buying and rose by 25 paisa at Rs16.75 on 0.129m shares. Others showed fractional price changes amid slow trading. Pakistan Northern Insurance, Bela Automotive and Myfip Video were leading among the gainers, up one rupee each.