KARACHI, Feb 9: Stocks on Wednesday took a technical breather as a section of investors took profits at the higher levels but larger fall was averted thanks to active short-covering at the dips in some of the blue chips including PSO.
Although index managed to finish fractionally higher despite heavy selling in PTCL and OGDC, broader market ruled terribly weak owing partly to widespread selling by jobbers and day-traders. Textile shares led the decline.
After having declined by about 18 points early in the session in line with highly erratic price movements in PTCL and OGDC, it finally managed to finish fractionally higher by 1.72 points at 7,156.55, although broader market received massive battering.
Bulk of the selling remained confined to PTCL which suffered sharp decline followed by OGDC, which also fell but well above the day's lows, allowing index to maintain its winning streak. Both are trend-setters for the index and could move it where they like. But it was literally a long-overdue technical breather in an overbought market which reflects that the current run-up has slowed down. Bears are out to push prices of some pivotals down and then to cover positions at the lower levels.
Corporate announcements from most of the leading banks, notably Askari Bank and some other mega issues are due during the next couple of weeks and there is no reason to believe that bears could tilt the price balance in their favour just by taking profits at the inflated levels.
"The best is yet to come", says a leading analyst "there could be some rethinking on the issue of future market trend after positive impact of higher dividend is digested".
"It is pretty difficult to pull the market down after general investor takes a stake in it," some others said "any amount of inspired selling or price manipulation could jolt the set price pattern but not too long as consolidation forces are always around to come to the aid of a falling market".
Although minus signs dominated the list some of the leading shares managed to finish with good gains under lead of PSO, AKD Securities, International Industries, and Siemens, up by Rs10.25 to Rs25.
They were followed by Dawood Lawrence, Shakarganj Sugar, Lakson Tobacco, PNCS, ahead of its board meeting and IGI, which posted gains ranging from Rs5 to Rs9.
Losses on the other hand were mostly fractional barring EFU Life, Noon Sugar, Crescent Steel, Berger Paints, Gillette Pakistan, Indus Dyeing, Pakistan Refinery, Sitara Chemicals, Atlas Honda and Nestle MilkPak, off Rs4 to Rs10.
Trading volume fell to 590m shares from the previous 684m shares as losers forced a strong lead over the gainers at 217 to 151, with 46 shares holding on to the last levels.
The most active list was topped by PTCL, off Rs1.70 at Rs63.85 on 89m shares followed by Hub-Power, lower 15 paisa at Rs34.35 on 81m shares, OGDC, easy 55 paisa at Rs87.55 on 57m shares, D.G.Khan Cement, higher by Rs1.55 at Rs62.60 on 54m shares and PSO, up by Rs10.25 at Rs342.50 on 41m shares.
Other actives were led by Fauji Fertilizer Bin Qasim, up 65 paisa on 37m shares, Lucky Cement, higher by 60 paisa on 34m shares, KESC, up by Rs1.50 on 29m shares, MCB, unchanged on 25m shares and Bank of Punjab, higher by 80 paisa on 24m shares.
FORWARD COUNTER: PTCL also attracted active selling in sympathy with its counterpart in the ready section, off Rs1.50 at Rs64.30 on 44m shares, OGDC, lower 25 paisa at Rs88.15 on 18m shares, and Hub-Power, firm by five paisa at Rs34.75 on 17m shares.
PSO also attracted strong support and rose by Rs9.45 at Rs344.30 on 11m shares, while PPL and Pakistan Oilfields, fell by 50 paisa and Rs3 at Rs147.70 and Rs254 respectively on active volume.
DEFAULTER COS: Unicap Modaraba and Unity Modaraba remained under pressure and fell by five and 20 paisa at Rs1.10 and Rs1.20 on 0.181m and 0.128m shares respectively, while Colony Sarhad Textiles, rose by 60 paisa at Rs6.90 on 0.100m shares.
DIVIDEND: Security Leasing, interim, bonus shares at the rate of 20 per cent, Javed Omer Vohra, interim, cash at 150 per cent, Harum and Shahpur Textiles, both nil.
BOARD MEETINGS: Al-Noor Sugar, on Feb 11, International Multi-Leasing, PICIC Investment Fund, PICIC Growth Fund, Kohinoor Energy, Attock Refinery, and Shabbir Tiles, on Feb 15, Pakistan National Shipping Corporation, on Feb 16, Hub-Power and Shifa International on Feb 17, and National Refinery, on Feb 23.