KARACHI, May 30: Stocks on Thursday failed to extend the overnight rally followed by profit-selling triggered by reports of a mortar attack on an Indian police camp in occupied Kashmir, killing a couple of soldiers and fears of Indian retaliation. The KSE index shed 30.32 points at 1.669.62.
The trading activity was literally guided by the reports from the LoC as investors were not inclined to cross certain self-imposed price limits in a bid to avert undue financial risks.
However, the satisfying feature was that bulk of the selling originated from the weakholders, while the leading investors held on to their positions as was reflected by mostly fractional price changes.
Overvalued energy shares including PSO and Shell Pakistan were, however, exceptions, which attracted strong selling and so did Hub-Power and some other pivotals, falling by Rs.3.35 to 3.85 for PSO and Shell Pakistan.
“Conflicting rumours followed in quick succession keeping investors at their toes all the time and never allowing them to even decide how to behave in tense situations like the current one,” stock analysts said.
What seems to have derailed the market from a path of recovery was the rumour of general evacuation of the US citizens from Pakistan followed by rumours of withdrawal of its armed forces stationed here in various locations.
The general perception was that India may not attack Pakistan in the presence of US soldiers here but the rumours apparently coined by the vested interests worked well, and bears ruled supreme.
“The chances of war are there as the developing scenario tells,” one broker says basing his assessment on some technical factors. “But it may not be that close.”
Essentially being highly sensitive to war-like situations, stocks seldom attain consistency and mostly thrive on galore of both positive and negative rumours. Currently, the market is facing the same dilemma, moving one step forward and two steps backward, floor brokers said.
“Leading stocks are manoeuvring around their downward circuit breakers owing to a volatile border situation,” says a leading stock analyst adding “the institutional or general support lacks the will to suck the floating stock.”
Most of the price changes on the higher side were rational barring Pak Reinsurance, Nafees Cotton on higher sales, Noon Sugar, Siemens Pakistan, Dawood Hercules and Aventis Pharma, which posted gains ranging from one rupee to Rs.5.
Losers were led by Sapphire Fibre, Lakson Tobacco, Pakistan Oilfields, Ferozsons Lab, BOC Pakistan, Lever Brothers and Wyeth Pakistan, off Rs.1.25 to Rs.8.
It was perhaps in this background that the fall was widespread and covered the entire blue chip sector and the overvalued shares. Losers forced a strong lead over the gainers at 157 to 82, with 52 shares holding on to the last levels. Traded volume fell to 114m shares from the previous 156m shares.
Hub-Power came in for active selling at the overnight rise and fell by 55 paisa at Rs.22.80 on 43m shares, followed by PTCL, easy by 50 paisa at Rs.15.55 on 27m shares, FFC-Jordan Fertilizer, lower five paisa at Rs.6.55 on 9m shares, PSO, sharply down by Rs.3.35 at Rs.130.75 on 6m shares and Sui Northern, up 50 paisa at Rs.13.10 on 6m shares.
Engro Chemical was also actively traded, off 65 paisa on 5m shares, ICI Pakistan, easy 15 paisa also on 5m shares, Pak PTA, unchanged on 4m shares, KESC, lower 25 paisa on 2m shares and National Bank, off 50 paisa on 0.837m shares.
FUTURE CONTRACTS: PSO came in for active selling on the forward counter and fell by Rs.3.36 for both the matured May and the forward June settlements at Rs.131.19 and 131.34 on about 2m shares. Others also fell but modestly.
Hub-Power was again actively traded, off 55 and 58 paisa at Rs.22.82 and 23 on 8m shares followed by PTCL, easy 45 and 50 paisa for both the contracts at Rs.15.75 and 15.60 on 3.8m shares.
DEFAULTER COMPANIES: Shares of a dozen companies came in for two-way trading but ended on an easy note under the lead of Suzuki Motorcycle, easy five paisa at Rs.4.85 on 27,500 shares followed by Crescent Board, firm at the same amount of Rs.2.95 on 26,500 shares.
Mehran Jute was marked down by 10 paisa at Rs.0.90 on 18,000 shares, while Ravi Rayon was traded unchanged at Rs.5 on 16,700 shares.
DIVIDEND: Pakistan International Airlines, nil for the year ended Dec 31, 2001, on an after-tax loss of Rs.2.205bn.