KARACHI, May 6: Share values on Tuesday remained under pressure and further fell across the board as investors continued to unload long positions to clear their leveraged positions amid panic created by the falling value of the rupee against the dollar. The KSE 100-share index was off 264.29 points at 14,408.84.

But unlike the previous session there were buyers at the dips on selected counters under the lead of oil shares, which allowed a good number of shares to finish well above their initial lows. Some brokers said the current correction may now be over and a strong rebound could follow it even tomorrow.

Although ended well above the session’s low of 14,319, at 14,408.84 on active short-covering in the oil shares and some other pivotals, the KSE 100-share index shed another 264.29 points or two per cent.

The total loss during the last two sessions was over 500 points or four per cent, which eroded another Rs80 billion from the market capital at Rs4,420 billion. Its junior partner also fell by 383.16 points at 17,267.15.

The market has already underwent a needed technical correction during the last six sessions, said a leading broker and indications are that the bulls may be back by tomorrow and put it back on the rails despite no encouraging news from the political front.

The currency market is in a virtual turmoil for the last couple of days as the demand for the dollar on various counts had pushed the rupee to a new low, analysts said.

“As the share and the currency business are co-related in more than one way as an investment tool, it does affect the other at the weak financial moments,” they said, adding: “When too many a rupee is chasing a too few dollar, the outcome is logical.”

But what seems to have aggravated the situation and hastened the market decline was heavy selling by the foreign investors for the last four consecutive sessions eroding about $7 billion from the market capital at $68.401 billion from the recent peak of $75.500 billion, said a leading analyst adding it is a massive erosion in a couple of sessions.

Analysts view the current creeping market crash in various ways. Some say the correction was long overdue in a massively overbought market but it was delayed owing to higher corporate announcements.

Some other claims the weak rupee did affect stock trading but not to that extent it has been affecting now, it appears to be the political uncertainty, which seems to be triggering panic selling.

Minus signs again dominated the list under the lead of EFU Life Assurance and Siemens Pakistan, off by Rs30.23 and Rs34, JS Gold, JS & Co, MCB Bank, Adamjee Insurance, EFU Life, Lakson Tobacco, Pakistan Refinery, PECO, HinoPak, Atlas Honda, Dawood Hercules, Ferozsons Lab, AKD Capital, Colgate Pakistan and Shezan International, off by Rs10.35 to Rs29.47.

Unilever Pakistan and Fazal Textiles managed to finish higher by Rs23 and Rs28.99. They were followed by PSO, Sapphire Textiles, Sapphire Fibres, Attock Petroleum, Indus Motors, and Engro Chemical, which posted gains ranging from Rs4.25 to Rs10.15.

Trading volume showed a modest rise at 198m shares from the previous 181m shares but losers held a strong lead over the gainers at 241 to 86, with 21 holding on to the last levels.

The most active list was again topped by Bank of Punjab, off Rs2.69 at Rs52.41 on 8m shares followed by OGDC, lower by Rs1.95 at Rs130.95 on 7m shares, Bank Alfalah, up 63 paisa at Rs54.90 also on 7m shares, D.G. Khan Cement, sharply lower by Rs4.55 at Rs97.95 on 7m shares, Engro Chemical, up Rs6 at Rs325.50 on 6m shares, Arif Habib Securities, lower 99 paisa at Rs180 also on 6m shares, and WorldCall Telecom, lower by 93 paisa at Rs14.77 also on 6m shares.

Other actives were led by NIB Bank, easy by 55 paisa at Rs15.40 on 6m shares, Pak PTA, lower 24 paisa at Rs5.50 also on 6m shares and JS Investment off Rs1.39 at Rs103.40 on 6m shares.

FORWARD COUNTER: MCB Bank came in for active selling and was marked down by Rs18.05 at Rs400 on 6m shares followed by Engro Chemical, up Rs5.49 at Rs328 on 4m shares.

Nishat Mills followed them, off Rs6.39 at Rs119.69 and Attock Refinery lower by Rs5.53 at Rs272 on 4m shares.

DEFAULTER COS: Norrie Textiles again led the list of actives, up four paisa at Rs1.91 on 2.473m shares followed by Zeal Pak Cement, lower by eight paisa at Rs3.12 on 0.712m shares and Crescent Standard Bank, higher by 20 paisa at Rs2.50 on 0.449m shares.

Japan Power followed them, easy by 15 paisa at Rs6.15 on 0.238m shares and Mukhtar Textiles, lower 28 paisa at Rs1.35 on 0.141m shares.

Market at a glance

May 6,2008

TONE:bearish,total listed 654,actives 348,inactives 306,plus 86,minus 241,unc 21

KSE 30-SHARE INDEX:previous 17,650.31,Tuesday’s 17,267.15,minus 383.16 points

KSE 100-SHARE INDEX:previous 14,673.13,Tuesday’s 14,408.84,minus 264.29 points

TOTAL VOLUME:197.920m shares

VOLUME LEADERS: Bank of Punjab 8.324m,OGDC 7.034m,Bank AlFalah 6.949m,D.G.K.Cement 6.669m,NIB Bank 6.298m shares.