KARACHI, April 19: Stocks on Tuesday turned in a highly volatile performance amid positive and negative news over the extension or otherwise of the Carryover Trade (COT) but till late in the session there was no official word on the issue. The KSE 100-share fell below the resistance level of 7,000 at 6,952.72, off 3.89 per cent or 251.49 points eroding Rs75 billion from the market capital at Rs1,970 billion.
It touched the day’s highest and lowest at 7,321.12 and 6,942.07 respectively amid alternate bouts of buying and selling related to COT news.
Earlier, in the morning session, a private TV channel claimed that an agreement between the KSE and SECP high-ups had been reached under which COT would be extended from June 3 to Aug 3, 2005.
The market leaders, notably PTCL, PSO, OGDC, Hub-Power, National Bank are involved in the current standoff on the badla in them. That is why as “they are down so is the entire market”, analysts said. All the seven shares are market heavy weights and set the market trend and without them any inspired rally could falter half way, they added.
The COT reports halted the market’s plunge temporarily but as there was no official confirmation about the agreement from either side, it resumed its downturn on active liquidation.
Indications are that the KSE high-ups may clinch the deal at least for the next three months as no one is inclined to have even a faintest idea of continued bearish signals for those who have a stake in the local share business, brokers said.
“I think the market is expected to be back on the rail possibly by Wednesday as much water has flown under the bridge. There could be an official announcement by the KSE on the conditional COT extension and that could trigger a lot of covering purchases as it did during three sessions of the last week”, they said.
Minus signs again dominated the list under the lead of Arif Habib Securities and PSO, off Rs18 to Rs18.95. Javed Omer, IGI Insurance, Artistic Denim, Gatron Industries, Pakistan Refinery, National Refinery, Pakistan Oilfields and Shell Pakistan followed them, off Rs7 to Rs18, National Refinery being major losers among them. Other good gainers were Al-Abbas Sugar, Clover Pakistan, New Jubilee Insurance, Millat Tractors, Wyeth Pakistan and Ferozsons Lab, up by Rs2.74 to Rs10.10.
But on the other hand, Atlas Honda and Parke-Davis managed to finish with extended gains of Rs15 and Rs81.
The market decline was again led by the energy sector followed by banks and overvalued shares on the other counters, notably chemical, auto and textiles.
Trading volume fell to 179m shares from the previous 312m shares. Losers maintained a strong lead over the gainers at 258 to 56, with 23 shares holding on to the last levels.
PTCL again topped the list of actives, off Rs3 at Rs57.25 on 50m shares followed by OGDC, lower Rs4.85 at Rs92.70 on 14m shares, National Bank, off Rs5.30 at Rs95.55 on 10m shares, Sui Northern Gas, easy Rs2.80 at Rs53.20 also on 10m shares, Pakistan Oilfields, sharply lower by Rs4.70 at Rs273.55, MCB, lower Rs6.50 at Rs66.95 on 7m shares and D.G.Khan Cement, off Rs3.15 at Rs60.05 on 10m shares.
Other actives were led by Fauji Fertilizer Bin Qasim, lower Rs1.50 on 7m shares, Pak PTA, off 45 paisa on 7m shares, and Fauji Cement, easy by 75 paisa on 6m shares.
FORWARD COUNTER: PTCL again received massive battering on the forward counter and fell by Rs3 at Rs57.50 on 16m shares followed by OGDC, off Rs4.95 at Rs94.05 on 5m shares, and Pakistan Oilfields, sharply lower by Rs4.40 at Rs273.60 on 3m shares.
Others also fell under the lead of PSO, off Rs19.05 at Rs362.25 on 2m shares and Sui Northern Gas, lower Rs3.80 at Rs54.20 also on 2m shares.
DEFAULTER COS: Relative quieter conditions prevailed on this counter as investors stayed on the sidelines watching the proceeding in the ready section. Modest two-way transactions were noted in the selected sectors.