KARACHI, Dec 8: Stocks on Friday extended the overnight easiness as leading investors were again conspicuous by their absence apparently awaiting the advent of institutional and speculative support but short-term investors took profits at the available margins. The KSE 100-share index shed another 81 points at 10,561.97.
But analysts said the market is passing through a consolidation phase after a due technical correction and could stage a smart recovery early next week. Most of the current actives in bank and oil shares have reached the target level for the foreign investors and are expected to initiate the rally.
The fresh sharp contraction in the turnover figure indicates that punters are still in two minds and did not participate in the proceeding anticipating further decline in prices.
The KSE 100-share index was quoted further lower at 10,561.97, off 80.71 points as compared to 10,642.68 a day earlier as leading oil shares remained under pressure and so did leading banks.
The relative weakness of the leading market trend-setters did not allow the market to follow a set course despite the fact that the news from the corporate front were terribly encouraging.
The companies, including banks, whose financial years are ending on Dec 31 are said to have significantly improved upon their previous earning records and there is a loud whispering about higher payouts, brokers said.
Analysts said the market appears to be in a consolidation phase before the advent of year-end short-covering and portfolio adjustments to fill in gaps here and there and could bounce back any session during the next week as punters will be back to resume new account buying.
But some others said there were no chances of a big turnaround at this stage as a section of investors was not quite sure about the future political developments and their impact on the market.
“The major possible depressant linked to MMA resignation issue may have now no relevance to the basic market fundamentals after its postponement,” analyst Ahsan Mehanti predicts, adding “the market could follow its technical demands when trading resumes next week”.Leading gainers were led by Clariant Pakistan EFU Life Insurance, up by Rs10.25 and Rs9.80, followed by PSO, Millat Tractors, Bata Pakistan, Lakson Tobacco, BOC Pakistan, Premier Sugar, Abbott Lab, Ferozsons Lab and Gillette Pakistan, up by Rs4.35 to Rs6.45.
Prominent losers were led by Attock Petroleum and Arif Habib Securities, off by Rs10.05 and Rs9.50. Other leading losers were included IGI, Central Insurance, National Bank, ICI Pakistan, HinoPak Motors, Pak-Suzuki Motors, Pakistan Cables, United Bank and Arif Habib Securities, off Rs4.10 to Rs9.50.
Trading volume fell further to 130m shares from the previous 190m shares as losers held a fair lead over the gainers at 172 to 105, with 51 shares holding on to the last levels.
Bank of Punjab led the list of actives, off Rs2 at Rs104.90 on 10m shares followed by PTCL, up by 45 paisa at Rs47.50 on 9m shares, Bank Alfalah, easy 80 paisa at Rs49.10 also on 9m shares, National Bank, sharply lower by Rs5.75 at Rs258.50 on 8m shares, OGDC, lower by 50 paisa at Rs121.50 on 7m shares and MCB, off Rs2.25 at Rs256.75 on 5m shares.
Fauji Fertiliser Bin Qasim followed them, lower 70 paisa on 7m shares, D.G. Khan Cement, steady by 20 paisa on 7m shares, Bank of Khyber, higher by 70 paisa on 4m shares and Pakistan Oilfields, off Rs2.80 on 4m shares.
FORWARD COUNTER: National Bank led the list of actives on the cleared list, off Rs4.80 at Rs260.80 on 8m shares, followed by MCB, lower by Rs4.05 at Rs256.50 on 6m shares and D.G. Khan Cement, firm by 10 paisa at Rs70.10 on 6m shares.
OGDC, followed them, easy by Rs1.40 at Rs120.20 on 5m shares and Lucky Cement, up by 30 paisa at Rs74.20 on 3m shares.
DEFAULTER COS: Unity Modaraba led the list of actives, unchanged at 90 paisa on 2.439m shares followed by Crescent Investment Bank, lower 40 paisa at Rs5.50 on 0.572m shares and Redco Textiles, off Re1 at Rs2.55 on 0.323m shares.
Norrie Textiles followed them, unchanged at Rs4.25 on 0.231m shares and Asset Investment Bank, higher 55 paisa at Rs4.65 on 0.115m shares. Others were modestly traded.