KARACHI, Nov 30: Stocks on Tuesday ran into profit-selling as investors unloaded long positions on a number of counters fearing a fresh float from the carryover market but there were buyers at the dips , signalling that nothing is wrong with the basic fundamentals.
After early surpassing the coveted level of 5,600 points at 5,602.00, the KSE 100-share index finally finished reacted on late selling, off 4.09 points at 5,567.79 as compared to 5,571.88 a day earlier.
The breach of the psychological barrier of 5,600 is very significant in the prevailing political scenario, brokers said adding that "investors seem to have banked on, at this formative stage, what could well mean, the current reconciliation moves among the contenders of power for the future market outlook".
The early run-up was attributed to heavy renewed buying in the energy shares, notably PSO and Pakistan Oilfields on reports that the government intends to increase petroleum price after about four months' status quo and the subsequent fall was caused by a free float from the carryover market.
"Owing to a record investment (Rs28bn at the last weekend) and volume on the badla market worries about a massive sell-off are still there", fears a leading stock analyst "but much would depend on how the consolidation forces react to this phenomenon".
Some others said strong presence of foreign investors, notably from Dubai-based investors in the energy shares could neutralize the negative fallout of the float from the badla market.
Of late Gulf investors are keen to have a stake in most of the leading energy shares, notably PSO, Pakistan Oilfields, OGDC and Pakistan Petroleum followed by reports of finding of new oil and gas reserves and infrastructure development projects, they said. Hub-Power has also joined the race.
Minus signs dominated the list under the lead of EFU Life, Javed Omer and Nestle MilkPak, off Rs8 to Rs21 followed by Mehmood Textiles, Mitchell's Fruits, Lakson Tobacco and Abbott Lab, which suffered fall ranging from Rs3.50 to Rs7.50.
Leading gainers were led by Gammon Pakistan, Ferozsons Lab, Allwin Engineering (right), Quetta Textiles, Artistic Denim, Unilever Pakistan and Treet Corporation, which posted gains ranging from Rs3.65 to Rs14.
Trading volume showed a modest rise at 256m shares from the previous 251m shares but losers maintained a fair lead over the gainers at 213 to 158, with 50 shares holding on to the last levels.
Sui Northern Gas topped the list of actives on reports of increase in supply of gas by the OGDC, up by Rs1.30 at Rs56.65 on 28m shares followed by OGDC, firm by 15 paisa at Rs66.95 on 27m shares, PICIC Growth Fund, higher by Rs1.20 at Rs48.90 on 21m shares, PTCL, steady five paisa at Rs40.35 on 18m shares, Pakistan Oilfields, higher by 75 paisa at Rs212.15 on 14m shares, PSO, up Rs1.60 at Rs268.70 also on 14m shares and D.G.Khan Cement, up by 30 paisa at Rs51.95 on 17m shares.
Other actives were led by National Bank, up by 25 paisa on 15m shares, Lucky Cement, lower 10 paisa on 12m shares and Dewan Motors, up by Re1 on 8m shares.
FORWARD COUNTER: PPL came in for active selling and fell by 40 paisa at Rs122.60 on 6m shares followed by Fauji Fertilizer Bin Qasim, easy 30 paisa at Rs23.60 also on 6m shares and OGDC, steady by 10 paisa at Rs66.10 on 5m shares.
Pakistan Oilfields and Sui Northern Gas, remained in strong demand and rose further by Rs1.20 and Rs1.05 at Rs213.20 and Rs56.75 respectively on 4m shares each.
DEFAULTER COS: Brisk trading was witnessed on this counter as a section of investors opted for undervalued shares to realize quick gains. Most of the textile and jute shares again came in for strong support and generally ended further higher.
Lafayette and Qayyum Textiles, were leading among them, easy five paisa and higher by 65 paisa respectively at Rs3.70 and Rs2.75 on 0.303m and 0.339m shares. Progressive Insurance, Awan Textiles and Crescent Spinning were also actively traded on the higher side.
BOARD MEETINGS: Ishaq Textiles, and Shafiq Textiles on Dec 2, and Silver Star Insurance on Dec 4.