An idea of selling may well be had from the fact that lower locks have to be applied in bank and oil shares to forestall further decline in their share values. Leading bank shares including National Bank, MCB and Bank of Punjab, off Rs.5.80 to 8.05 followed by Pakistan Petroleum, PSO and Pakistan Oilfields.
The market appears to be in the tight grip of some leading rumour-mongers and speculators as only big ones have the resources and the guts to cause such massive either-way movements of the index creating panic-like conditions at such a time when the Islamabad is grappling with the post-quake problems.
“The SECP must be watching the situation and should intervene to restore sanity to stock trading before it is too late,” some leading investors said “the developing situation is reminiscent of the last March crash from the index level of 10,300 and now from 9,000”.
A section of leading analysts say the market has risen by 2,000 points during the last couple of months and needs correction and where the end will come is not clear as the big operators hold the key. Lower-locks in bank and oil shares reflect that the market retreat has just begun.
The KSE 100-share index lost overnight gains and was marked down by 314.96 points at 8,558.00 as compared to 8,872.96 a day earlier. All the leading base shares, notably PSO, Pakistan Oilfields, PTCL, OGDC and some others remained under pressure and finished around their lower limits.
“It is not difficult to push the index down by 2.5 per cent just in a session, says a leading analyst “Push half a dozen leading base shares down or up by a few rupees individually the index would dance to their tune”.
However, the massive either-way volatility of the index creates scare among the genuine and small investors who could not precisely decide how to react to the panic-like situation and are caught in between.
“The erratic movements of the index have triggered a straight fight between the bulls and the bears”, analysts said, adding “the former are out to see it beyond the 9,000 level, while the latter wants it keep within the sustainable level”.
Some of the prominent gainers included Wyeth Pakistan and Siemens Pakistan, up by Rs15 and Rs18.50 respectively. Other good gainers were led by EFU General, Mustehkam Cement, Shezan International Nestle Pakistan, United Sugar and National Refinery, up by Rs5.20 to Rs9.
Trading volume rose to 378m shares from the previous 302m shares as losers held a strong lead over the gainers at 192 to 88, with 29 shares holding on to the last levels.
PTCL again led the list of actives, off Rs3.35 at Rs64.35 on 64m shares followed by OGDC, down Rs6 at Rs114.65 on 46m shares, Fauji Fertilizer Bin Qasim, lower 95 paisa at Rs34.65 on 28m shares, Fauji Cement, easy 90 paisa at Rs18 on 25m shares, MCB, off Rs7.45 at Rs142 on 20m shares, National Bank, lower Rs8.05 at Rs153.75 on 18m shares and Bank of Punjab, off Rs5.80 at Rs110.75 on 17m shares.
Other actives were led by Pakistan Petroleum, off Rs10.50 on 17m shares followed by Lucky Cement, higher by Re1 on 16m shares and Pakistan Oilfields, off Rs21.25 on 11m shares. Others also fell on modest turnover.
FORWARD COUNTER: D.G.Khan Cement led the list of actives on this counter, off Rs3.30 at Rs88.95 on 27 million shares, OGDC, off Rs6.05 at Rs115.45 on 25m shares and Nishat Mills, off Rs5 at Rs95.25 on 19m shares.
PTCL shed more than what it recovered a day earlier, lower Rs3.40 at Rs64.70 on 19 million shares and Pakistan Petroleum, off Rs10.60 at Rs201.40 on 16 million shares. Turnover figure on the cleared list rose to 183 million shares from the previous 135 million shares, touching the danger zone.
DEFAULTER COS: Dandot Cement was actively traded at Rs8.55 and Rs9.10 but ended at the previous rates of Rs8.65 on 0.354 million shares. Crescent Board and Morafco Industries were among the prominent gainers, up Rs1 and Rs2.05 at Rs16.50 and Rs43.30, while Amazai Textiles fell by Re1 at Rs0.70.