KARACHI, June 23: The KSE 100-share index on Friday breached through the psychological barrier of 10,000 points on panic selling originating from all the quarters followed by rumours that the apex court verdict on the sell-off of Pakistan Steel may go against the Privatisation Commission and some exposure problems. The KSE index plunged by 363.47 points or 3.57 per cent at 9,807.53 points wiping out Rs89bn from the market capital.
The investors’ confidence, which has been progressively building up in the share business after early June sell-off was again badly shaken as some of them indulged in hasty selling at a discount to avert further losses after leading shares above their lower locks amid turmoil caused by various rumours that followed in quick succession in the afternoon session.
After a bullish opening, stocks again received a massive battering at the inflated levels and finished the weekend session sharply lower wiping out a good part of the gains netted in the earlier sessions amid conflicting rumours.
What seems to have pushed an earlier bull market to new lows was rumours that Supreme Court verdict on the sell-off of the Pakistan Steel may go against the government, which analysts said would work against the entire privatisation programme followed by reports of some exposure problems and fears of permission of short-selling in the new comer forward July contracts.
The KSE 100-share index fell below the psychological barrier of 10,000 at 9,807.53, off 363.47 points or 3.57 per cent as leading base shares fell like nine pins under the lead of OGDC, National Bank, Pakistan Petroleum and some other, which earlier were trading around the upper locks on active follow-up support.
The opening was, however, fairly promising what the dealers called an extension of the overnight run-up and the KSE index rose by over 140 points but the afternoon session witnessed a lot of profit-selling in the leading base shares under the lead of OGDC and some others.In the morning session, National Bank, MCB, Pakistan Oilfields, Pakistan Petroleum were again hovering around their upper locks(five per cent up in intra-day trade),and evoked active sympathetic support on some other blue chip counters.
The short-covering, which was earlier very aggressive in patches, was essentially index-based. It appears a section of leading investors led by the financial institutions is inclined to push it around the 11,000 point level and sustain it as second landmark after the 12,236 points during the current fiscal, analysts said.
Although some of the leading analysts are not clear about the market’s behaviour at the closing stages of the current fiscal, leading among them are optimistic about the finish on a bullish note apparently on the strength of corporate background news and its oversold position.
Minus signs dominated the list as a good number of leading shares around their lower locks, under the lead of National Bank, MCB, Lakson Tobacco, PSO, OGDC, Pakistan Oilfields, Pakistan Petroleum, and many others, off Rs10.65 to 15.50. But the largest decline of Rs56.00 was noted in Wyeth Pakistan. Gatron Industires, Shell Pakistan, Dawood Hercules, Engro Chemical and Treet Corporation also fell by Rs8 to 12 on active selling.
Among the prominent gains, UTP Growth Fund, Jahangir Siddiqui Capital Market Fund, EFU Life, Shell Gas, Sitara Chemicals, Pakistan Engineering, HinoPak, and Mari Gas were leading, which posted gains ranging from Rs4 to 6.50. Nestle Pakistan, which rose by Rs54 was leading among them.
Trading volume fell to 248m shares from the previous 255m shares as losers forced a strong lead over the gainers at 211 to 60, with 21 shares holding on to the last levels.
OGDC topped the list of actives, sharply lower by Rs6.95 at Rs132.60 on 41m shares followed by National Bank, off Rs10.95 at Rs208.55 on 31m shares, Pakistan Petroleum, lower Rs10.65 at Rs202.75 on 23m shares, D.G.Khan Cement, off Rs4.70 at Rs90 on 21m shares, MCB, lower Rs10.55 at Rs201.35 on 15m shares, and Pakistan Oilfields, off Rs17.35 at Rs330.15 also on 15m shares.
Other actives were led by Lucky Cement, off Rs5.50 on 14m shares, Bank of Punjab, lower Rs4.25 on 8m shares, BSJS Balanced Fund, easy 10 paisa also on8m shares and Pakistan Cement, off 75 paisa on 6m shares.
FORWARD COUNTER: National Bank came in for strong selling at the current inflated levels and fell by Rs11 at Rs209 on 11m shares followed by OGDC, lower by Rs6.95 also on 11m shares, and Pakistan Petroleum, off Rs9.60 at Rs203.90 on 7m shares.
MCB also came in for active profit-selling at the higher levels and fell by Rs10.60 at Rs201.80 on 7m shares and Pakistan Oilfields, sharply lower by Rs17.45 at Rs332.45 on 6m shares.
DEFAULTER COS: Trading on this counter was relatively slow owing to heavy selling in the ready section. Prices fell fractionally but there was no large activity in any of the current actives, which were modestly traded under the lead of Crescent Fibre and Crescent Standard Bank. The former rose by another one rupee at Rs14.50 on 5,500 shares, the latter fell by 30 paisa at Rs4.25 on 92,500 shares.?