KARACHI, Dec 1: The below market expectations ‘strike price’ of OGDC’s Global Depository Shares (GDSs) dragged down the entire blue chips sector along with it in the minus column on panic-selling and analysts feared the worst may still have to come. The KSE 100-share index lost 230 points or 2.17 per cent eroding Rs58bn from the market capital.

“It was a psychological sell-off and may not be extended further next week as fair value of the OGDC is much higher than the prevailing one,” stock analyst Ahsan Mehanti predicts, adding “the talk of Rs110 level before a rebound appears to be beyond its financial strength”.

Another analyst Faisal Abbas says at the current level after the Friday’s lower lock, which chipped away Rs6.35 from its share value at Rs120.85, OGDC could be attractive bait for any prospective investor eyeing capital gains.

Trading was at a standstill in its share to forestall further fall as it has fallen below its lower circuit breaker and was last quoted around Rs120.85 as compared to overnight close of Rs127.20.

The 100-share index, suffered a massive pruning of 150 points alone because of sell-off in OGDC, and finished the day with a net fall of 230.56 points or 2.17 per cent at 10,388.19 as compared to 10,618.75 a day earlier, reflecting the weakness of the other leading base shares. OGDC itself finish at its lower circuit breaker.

The Privatisation Commission on Thursday announced the strike price at Rs115 per share or $18.90 per GDS, consisting of 10 shares, and Rs110 per share for local retail investors. The prices allow 9.5 per cent discount of OGDC’s Thursday’s closing price. About 10 per cent or about 4m shares would be offered to both local and foreign investors.

The share value of the OGDC has been on the decline for the last couple of weeks and had fallen to Rs120 from Rs156 amid conflicting reports about its GGS price, analysts said, adding “the general perception was that it could be around $2.5 and $2.75 per share but below market fixation triggered panic selling in”.

The hasty selling spilled over to other blue chip counters, which fell in unison under the lead of oil and bank shares.

Callmate Telips, which has risen by Rs20 during the last couple of sessions was however an exception, which rose further by Rs4.60 at Rs97.20 in response to higher cash dividend of 20 per cent and bonus shares at the rate of 30 per cent.

Some of the leading shares managed to finish higher under the lead of Dawood Hercules and Fateh Textiles, up by Rs7.25 and Rs21, followed by Atlas Insurance, Lucky Cement, on reports of sales tax waiver and restoration of rebate on exports, Gillette and some others, up by Rs3.20 to Rs4.95.

Leading losers included Attock Petroleum and Shell Gas, off by Rs10.95 and Rs11.75 respectively. Jahangir Siddiqui & Co, National Refinery, EFU General, National Bank, Shell Pakistan, OGDC, Millat Tractors, Pak-Suzuki Motors and Sanofi Aventis followed them, off Rs6.35 to Rs8.15.

Owing to confusion created by the lower GDS price of OGDC, investors kept to the sidelines and did not make fresh commitments even at the falling prices.

The volume was light at 126m shares in the absence of support from any quarter and losers held a lead over the gainers at 157 to 97 with 43 shares holding on to the last levels.

National Bank, off Rs7.10 at Rs265 on 10m shares, D.G.Khan Cement, up by Rs2 at Rs72 on 8m shares, Pakistan Petroleum, sharply lower by Rs9.15 at Rs231.10 on 8m shares, PTCL, easy by Rs1.25 at Rs45.35 on 7m shares, PICIC, off Rs2.15 at Rs72.50 on 6m shares and Pakistan Oilfields, lower by Rs4 at Rs347.50 on 4m shares.

Other actives were led by Fauji Cement, up by 50 paisa on 5m shares, Faysal Bank, off Rs1.10 also on 5m shares and Lucky Cement, higher by Rs3.20 on 4m shares.

FORWARD COUNTER: National Bank came in for active selling and led the list of actives, off Rs7.70 a Rs266.40 on 11m shares followed by Pakistan Petroleum, lower Rs10.05 at Rs232.65 on 5m shares and Pakistan Oilfields, easy by Rs4.35 at Rs349.75 on 4m shares.

They were followed by D.G. Khan Cement, higher by Rs2.05 at Rs72.70 on 4m shares aided by reports of sales tax exemption and restoration of rebate on exports and Lucky Cement, up by Rs2.85 at Rs74.60 on 3m shares.

DEFAULTER COS: Norrie Textiles came in for active weekend selling at the higher level and was marked down by Re1 at Rs4 on 0.701m shares followed by Crescent Investment Bank, lower 25 paisa at Rs5.15 on 0.460m shares and Asset Investment Bank, higher by Re1 at Rs4 on 0.183m shares. Others were modestly traded.

DIVIDEND: Callmate Telips, final, cash 20 per cent, interim of 10 per cent already paid, bonus shares at the rate of 30 per cent, interim 17.5 per cent already paid.