KARACHI, Jan 12: Stocks on Wednesday came in for strong selling as some of the punters unloaded long positions on some of the pivotals at the inflated levels amid a briskly traded session.
The KSE 100-share index shed 53 points at 6,657.40. But speculative forces stayed on the market and picked up a new fighting arena with bears, which at last fought back and halted the sustained run-up. Hereto inactive Hub-Power was the new battle ground.
After having broken all the previous records on Tuesday, the KSE 100-share index took a technical pause apparently to launch a fresh drive to its next chart point of 7,000.00.
It was up 75 points in the morning session and then fell sharply lower eroding most of the initial gains but managed to finish well above the day's lows in a highly volatile performance. The net fall over the day was 52.63 points at 6,657.40 and Rs17.456bn in the market capital at Rs1,841.497bn.
The early run-up was attributed to strong spilled over demand, while later reaction was caused followed by reports of partial disruption in gas supplies from Sui to the industrial sector due to attack on gas facilities.
While a section of investors opted for a terrible squeeze on the floating stock of Hub-Power purely on speculative grounds, others took profits in PTCL and OGDC, the two market leaders, which pushed the index to a new all-time level well over 6,700 points after rising by 226 points on Tuesday. Hub-Power was massively traded, up by Rs2.20 on 197m shares.
Both Sui Southern Gas and Sui Northern Gas and Pakistan Petroleum being leading among the market leaders came in for active selling, having negative impact on the other energy and industrial shares, notably Fauji Fertilizer and Fauji Fertilizer Bin Qasim, brokers said.
"Tuesday's performance after it breached through three consecutive barriers to close well above the 6,700 index level, may not be repeated again as the current fight between the leading punters is heading towards its logical end", analysts said. But opinions are still divided over the long overdue correction. Some say it would certainly manifest itself in a bigger way but after the Rubicon of 7,000 points index level is crossed.
Some others claim it has already around, although the market may not shed an extra weight of 300 to 400 points as it would mean a massive retreat not warranted at this time.
Although losers dominated the list, some of the leading shares managed to finish with an extended gain under the lead of EFU Life, Ayesha Textiles, Faisal Spinning, Pakistan Services, and International Industries, up by Rs5 to Rs12. But the largest speculative rise of Rs32.70 was noted in AKD Securities.
Prominent losers included Artistic Denim, Shell Pakistan, Treet Corporation and Wyeth Pakistan, which suffered fall ranging from Rs11.75 to Rs42.70. Other prominent losers were led by Arif Habib Securities, Babari Cotton, Sana Industries, Noon Sugar, Pakistan Petroleum, Atlas Honda, Pakistan Cables, and Sapphire Textiles, off Rs4 to Rs6.
Trading volume was maintained on the higher side thanks to massive alternate bouts of buying and selling in the pivotals, totalling 954m shares but losers forced a strong lead over the gainers at 280 to 122, with 36 shares holding on to the previous levels.
Apart from Hub-Power, the most active list was topped by PTCL, lower 25 paisa at Rs53.05 on 143m shares followed by OGDC, off Rs1.35 at Rs77.65 on 126m shares, Fauji Fertilizer Bin Qasim, up by Re1 at Rs31.80 on 108m shares and D.G.Khan Cement, off 85 paisa at Rs59.15 on 44m shares.
They were followed by Pakistan Oilfields, off Rs2.95 on 34m shares, Lucky Cement, up by 55 paisa on 32m shares, PICIC Growth Fund, higher by 45 paisa on 31m shares, PSO, off Rs3.85 on 29m shares and Fauji Cement, steady five paisa on 27m shares.
FORWARD COUNTER: PTCL led the list of actives, lower 35 paisa at Rs53.05 on 40m shares followed by Hub-Power, up by Rs1.85 at Rs34.75 on 27m shares and Fauji Fertilizer Bin Qasim, higher by 95 paisa at Rs32 on 18,00m shares.
PPL on the other hand came in for active selling followed by reports of its suspension of supplies of gas owing to attack on its facilities, off Rs4.50 at Rs140 on 18m shares, OGDC, lower Rs1.45 at Rs78.10 also on 18m shares. Fauji Fertilizer and PSO also fell by Rs2.40 and Rs3.10.
DEFAULTER COS: Crescent-Standard Bank remained under pressure on selling at the higher levels and fell by 85 paisa at Rs15.55 on 0.431m shares followed by Mukhtar Textiles, up by 45 paisa at Rs10.90 on 0.317m shares. Others were modestly traded mostly on the lower side.