KARACHI, Nov 8: Stock market on Wednesday failed to extend the overnight recovery as follow-up support turned shy owing to some negative news including killing of three dozen army men in a terrorist attack and some CFS-related technical factors.
Leading analysts said that the Democrats’ victory in the US mid-term elections could have far-reaching negative impact on the existing Pakistan-US relations which was also considered a bearish factor fuelling fresh selling in some of the MNCs by the foreign investors.
Although the market managed to finish well above the session’s lows despite the relative weakness of leading base shares, the mid-session rally remained inconclusive on renewed selling in some of the pivotals.
A good part of selling was also attributed to Thursday’s closure on account of Iqbal Day holiday as some of the leading market players were not inclined to hold long positions owing to deteriorating law and order situation in the tribal areas, brokers said.
The KSE 100-share index, which has shown signs of recovery late on Wednesday evening on strong institutional support, suffered modest fall of 44.43 points at 10,973.08 as compared to 11,017.51 a day earlier.
Among the leading base shares, PTCL came in for strong support and led the list of actives, but on the other hand other pivotals, including OGDC, National Bank, MCB and Pakistan Petroleum remained under pressure and finished with fresh fall.
The KSE 30-share index also fell by 53.95 points at 13,454.45, reflecting the weakness of leading base shares.
“Investors are awaiting the deadline of Nov 15 when the conversion of in-house financing into CFS will be allowed,” says a leading stock analyst Faisal A. Rajabali, adding “the amount of Rs55 billion may not be sufficient to finance the rising stock market but it will certainly give the needed boost to trading”.
But some others were worried over the developing law and order situation in the tribal areas in the backdrop of attack on army men, and that was why they were playing safe.
Unlike the previous sessions, broader market remained depressed on sympathetic selling on the blue chip counters under the lead of some leading cement shares.Among the prominent gainers, Clover Pakistan and IGI Insurance were leading, up by Rs6.50 and Rs6.75, followed by Premium Textiles, Blessed Textiles, Pakistan Refinery, Mitchell’s Fruits, National Foods and Shezan International, which posted gains ranging from Rs2.10 to Rs5.
Prominent Losers were led by Jahangir Siddiqui & Co and Dawood Hercules, off by Rs7.50 and Rs14. They were followed by MCB, Union Bank, Artistic Denim, Pakistan Oilfields, Pakistan, Petroleum, Atlas Honda, Bata Pakistan, Gillette Pakistan Shell Gas, Shaheen Insurance and AKD Securities, off by Rs4.50 to Rs7.10.
Trading volume fell to 182m shares from the previous 192m shares as losers held a fair lead over the gainers at 169 to 124, with 46 shares holding on to the last levels.
PTCL topped the list of most actives on foreign support and was quoted higher by Rs1.20 at Rs46.85 on 45m shares followed by OGDC, lower 95 paisa at Rs138.80 on 20m shares and National Bank, off Rs2 at Rs269 on 14m shares.
Pakistan Petroleum, off Rs5.75 at Rs249 on 10m shares, Lucky Cement, up by Rs1.75 at Rs85.25 on 7m shares, D.G. Khan Cement, higher by Rs1.55 at Rs78.70 also on 7m shares and MCB, off Rs4.65 at Rs267.85 on 5m shares.
Other actives were led by Bank of Punjab, easy 15 paisa on 10m shares, Bank Alfalah, off 85 paisa on 9m shares and Fauji Fertiliser Bin Qasim, up by 45 paisa on 6m shares.
FORWARD COUNTER: National Bank came in for active selling on this counter and fell further by Rs3.60 at Rs269.30 on 13m shares followed by OGDC, lower 95 paisa at Rs139.30 on 11m shares and PTCL, up by Rs2.25 at Rs47.05 on 10m shares.
Pakistan Petroleum followed them, off Rs5.95 at Rs250 on 7m shares and D.G. Khan Cement, up by 80 paisa at Rs78.80 on 5m shares.
DEFAULTER COS: Activity on this counter was relatively slow owing perhaps to Thursday’s closure. Crescent Standard Bank was an exception, which came in for modest support at the previous rate of Rs4.60 on 0.460m shares followed by Norrie Textiles, off 45 paisa at Rs3.80 on 0.180m shares.