KARACHi, July 10: Stocks on Tuesday fell across a broad front on mid-session hasty selling triggered by reports of military operation to end the Lal Masjid standoff, but larger fall was averted. The KSE-100 share index shed 101.62 points at 13,917.43 points.
Mid-session plunge was fairly alarming as the reports of casualties reached the market heralding the exit of some of the foreign investors but institutional traders stepped in to avert a major decline after absorbing selling from the weak-holders.
The KSE 100-share index shed 101.62 points at 13,917.43 as compared to 14,019.05 a day earlier. It hit the session’s high at 14,123.34 points soon after the opening and low at 13,892.55 after the news of operation reached the market.
The opening was, however, fairly promising owing to optimism created by the overnight’s breakthrough above the index level of 14,000 but the panic gripped investors after the reports of operation reached the market followed by panic selling by all and sundry.
Analysts said the market could shed an extra weight in the coming sessions also after the full details of the operation and casualties are officially available by Wednesday.
However, one thing appears certain that the market could take sometime to be back on the rails as fears of backlash and protest will continue to haunt investors, particularly foreign ones, they said.
Some others said the market had not yet reached the saturation point beyond the index level of 14,000 points and was capable of absorbing negative news on the strength of its positive basic fundamentals.
Renewed covering purchases in the undervalued shares reflected that leading investors did not left the market and purchased low-priced issues after selling the overvalued ones to minimise possible losses. “Essentially sensitive to adverse developments both on the political and law and order front, foreign investors generally withdrew to the sidelines initially and then indulge in selling if the situation does not improve,” analyst Ahsan Mehanti said.
But analyst Hasnain Asghar Ali was of the view foreign investors have a big stake in the market and may not opt for panic selling without having an overview of the post-operation developments.
Colgate Pakistan, Treet Corporation and Unilever Pakistan were leading among the gainers, up by Rs15 and Rs100, followed by JS & Co, Arif Habib Ltd, Central Insurance, Pakistan Resource Company, Mirpurkhas Sugar, PSO, Mari Gas, AKD Securities and Dawood Hercules, up by Rs7.20 to Rs13.95.
Lakson Tobacco and Shell Pakistan were among the top losers, off by Rs29.90 and Rs16 respectively. They were followed by Gatron Industries, Adamjee Insurance, Thal Jute, Attock Petroleum, HinoPak and Sanofi-Aventis, off Rs7.70 to 11Rs.10. There were several other prominent losers also.
Owing to panic selling the turnover figure soared to 428m shares from the previous 358m shares as losers forced a strong lead over the gainers at 230 to 147, with 27 shares holding on to the last levels.
Pak PTA led the list of actives, up by 65 paisa at Rs6.55 on 35m shares followed by TRG Pakistan, steady by 30 paisa at Rs16.80 on 31m shares, Arif Habib Securities, up by Rs2.50 at Rs143 on 29m shares, Bosicor Pakistan, lower 30 paisa at Rs20.10 on 19m shares, Bank Alfalah, firm by 30 paisa at Rs57.60 on 13m shares and BankIslami Pak, up by 40 paisa at Rs16.20 on 12m shares.
Other actives were led by Javed Omer & Co, off Rs3.85 on 15m shares, JS Bank, up by Re1 on 12m shares and Fauji Fertiliser Bin Qasim, lower 35 paisa also 12m shares.
FORWARD COUNTER: Speculative scrips on the forward counter also fell where changed on profit-taking. Lucky Cement came in for active selling, off Rs2.75 at Rs131 on 5m shares, Bank Alfalah, up by 30 paisa at Rs58 on 5m shares and Bank of Punjab, easy by 65 paisa at Rs109.60 on 4m shares.
Fauji Fertiliser Bin Qasim followed them, easy 30 paisa at Rs41 on 4m shares and Pakistan Petroleum, easy by 25 paisa at Rs273.75 on 3m shares.
DEFAULTER COS: Japan Power again came in for active support and rose by 65 paisa at Rs9.40 on 9.901m shares followed by Nimir Chemicals, off 45 paisa at Rs4.95 on 1.595m shares and Zeal-Pak Cement, lower 20 paisa at Rs6.75 on 1.248m shares.
Unity Modaraba followed them, easy by five paisa at 75 paisa on 0.832m shares and Norrie Textiles, up by 15 paisa at Rs2.75 on 0.702m shares.
BONUS SHARES: AMZ Plus Income Fund, 11.60 per cent, Faysal Savings Growth Fund, 1.25 per cent, Faysal Income and Growth Fund, 12.75 per cent, Faysal Balanced Growth Fund, 18 per cent.