KARACHI, July 6: Stocks on Tuesday failed to extend previous gains as investors took profits at the higher levels but only extreme gains were clipped as there were buyers at the dips. The KSE 100-share index suffered a mild reaction of 9.07 points at 5,390.72.
The interesting feature was that the index reacted from the recent highs owing to the weakness of OGDC and Hub-Power, which ran into profit-selling at the inflated levels.
The market took a breather on technical grounds as a section of leading brokers rolled positions from the overvalued counters to the low-priced ones as a new year buying strategy, some brokers said.
After having touched the day's highest level at 5,422.31 on the strength of PTCL and OGDC, the KSE 100-share index finally finished with a modest decline of 9.07 points at 5,390.72 as compared to 5,399.72 a day earlier.
But there was nothing wrong in the background news to which the pause could be attributed except for the technical factors and the market could resume its upward drive even tomorrow.
Reports of further delay in the repair work of the fourth generator of the Hub-Power from August to September took its toll in its share value for the second session in a row, having a negative impact on the performance of the broader market.
Floor brokers said the market had risen sharply higher during the last couple of sessions aided by nomination of finance minister Shaukat Aziz as the future prime minister and investor perception of further boost to the economy after he takes over.
"Progressive fall in the trading volume do worry investors but no one could precisely pinpoint the real cause behind the falling demand," they said. The daily turnover figure has fallen to 213m shares from well over 365m shares at the last weekend session, which reflects some rethinking on the investor perceptions about the future stock market outlook.
"There is nothing to worry about," analyst said adding "leading institutional traders are busy with the paperwork of new year portfolio building and will be back during the next couple of sessions."
Although minus signs dominated the list, some of the leading shares managed to finish with an extended gain under the lead of Pakistan Papersack, Pak-Suzuki Motors, National Refinery, Jahangir Siddiqui Bank and Company, Unilever Pakistan and Grays of Cambridge, which posted gains ranging from Rs3.35 to Rs10.
Other good gainers included Pakistan Refinery, Millat Tractors, Pakistan Cables, Abbott Lab and Janana Demalucho Textiles and Pak-Suzuki Motors, up Rs3 to Rs3.45. The losers were led by Al-Ghazi Tractors, Dawood Hercules, Noon Sugar, EFU Life Insurance, Javed Omer, Nestle MilkPak, off by Rs3.10 to Rs15, the largest decline of Rs61.75 again being in Wyeth Pakistan, which fell by Rs65 a day earlier.
Other prominent losers included Pakistan Oilfields, Babri Cotton, Ferozsons Lab and Pakistan Papersack, off Rs2 to Rs3. Trading volume rose to 267m shares from the previous 263m shares but losers maintained a fair lead over the gainers at 189 to 121, with 42 shares holding on to the last levels.
Lucky Cement topped the list of most actives, up 85 paisa at Rs42.50 on 33m shares followed by PTCL, higher by 35 paisa at Rs42.90 on 32m shares, OGDC, off 50 paisa at Rs66.95 on 24m shares and Bank of Punjab, firm by 20 paisa at Rs57.10 on 20m shares and Maple Leaf Cement, steady by five paisa at Rs40.40 on 16m shares.
Other actives were led by DG Khan Cement, easy 30 paisa at Rs58.35 on 15m shares, National Bank, lower 45 paisa at Rs68 on 12m shares, Saadi Cement up 55 paisa on 8m shares and Pak Premier Fund, higher by 95 paisa on 7m shares.
FORWARD COUNTER: Provisionally listed Pakistan Petroleum came in for active selling at the overnight higher levels and fell by Rs1.95 at Rs144.55 on 16m shares followed by OGDC, lower 55 paisa at Rs67.25 on 4m shares, PTCL, up 25 paisa at Rs43.10 also on 4m shares, Hub-Power lower 45 paisa at Rs31.80 on 2m shares and DG Khan Cement, off 50 paisa at Rs58.70 also on 2m shares.
DEFAULTER COS: For the second session in a row, trading in this section remained light as investors indulged in alternate bouts of buying and selling rather than making fresh commitments at the lower rates. Standard Investment Bank was the only active share, which fell by 15 paisa at Rs9.35 on 0.218m shares, while all others were modestly traded.