KARACHI, Jan 31: PTCL and Hub-Power on Friday received massive battering as leading bears indulged in heavy weekend selling taking the entire market along with them below the 2,600 point index level.
The selling was widespread as other quarters, notably the weakholders, followed their lead but as there was no matching buying support prices fell across the board amid light volume.
Energy shares received massive battering at the inflated levels and so did some other blue chips as investors tried to get out of the market.
The KSE 100-share index breached through its jealously guarded barrier of 2,600 points at 2,545.07 as compared to overnight’s 2,649.06, reflecting the weakness of the leading base shares including PTCL and Hub-Power. The net decline was 103.39 points or four per cent.
The market capitalization also suffered sharp fall of Rs21.262bn at Rs561.777bn as compared to Rs583.039bn a day earlier, bulk of which was contributed by PTCL and Hub-Power, the two heavily-capitalized shares.
The breach of the crucial level of 2,600 points could lead to further decline both in the index and share values leading companies during the next week, predicts a leading broker “the market seems to be moving toward its sustainable levels.”
“I don’t think investors will try to hold on to their long positions as future outlook appears to be too uncertain in the wake of external developments and fears of Iraq war,” he said.
Some analysts claim the index is progressively heading toward its sustainable level of somewhere slightly below 2,000 points as the element of speculative activity is fading out of the market owing to some more pressing negative developments.
The buying euphoria generated by the pre-dividend announcements of some leading shares including Fauji Fertilizer, Engro Chemical, Shell Pakistan and Unilever Pakistan is fading as was reflected by widespread profit-selling, they said adding some of the leading shares are still overvalued and may need more correction in the sessions to come.
Some others said there is no major change in the basic local positive factors and there are reasons to believe that bulls will strike back when the trading resumes next week.
Despite reports of further increase in petroleum prices for the fortnight ended Jan 31, all the leading shares including energy ones fell across the board amid moderately active trading.
Leading losers were led by Pakistan Oilfields, PSO, Shell Pakistan, Wyeth Pakistan and Unilever Pakistan, off Rs9.25 to Rs29.30. They were followed by Adamjee Insurance, Attock Refinery, National Refinery, Pakistan Refinery, HinoPak Motors, Abbott Lab, Fauji Fertilizer, Engro Chemical, ICI Pakistan, Ferozsons Lab and many others, off by Rs2.50 to Rs7.25.
Pak-Suzuki Motors, Bank Al-Habib, Al-Mal Securities, Cherat Papers, Siemens Pakistan, BOC Pakistan and Arif Habib Securities managed to finish higher by Rs2.30 to Rs13.50 respectively.
Trading volume fell to 194m shares from the previous 251m shares as losers forced a strong lead over the gainers at 227 to 50, with 34 shares holding on to the last levels.
Hub-Power led the list of actives, off Rs1.75 at Rs34.75 on 70m shares followed by PTCL, lower Rs1.15 at Rs22.65 on 32m shares, PSO, off Rs10.05 at Rs190.95 on 18m shares, FFC-Jordan Fertilizer, lower one rupee at Rs10.85 on 11m shares and National Bank, down 75 paisa at Rs25.10 on 10m shares.
Other actives included ICI Pakistan, off Rs2.60 on 8m shares, Sui Northern Gas, lower Rs1.15 on 6m shares, Engro Chemical, off Rs4.60 on 5m shares, KESC, easy 25 paisa on 4m shares and Pak PTA, off 70 paisa on 3m shares.
FORWARD COUNTER: All the leading shares came in for heavy liquidation under the lead of PS, which fell by Rs10.02 at Rs203.15 on 2.335m shares. Other major losing shares were led by Fauji Fertilizer and Engro Chemical, off Rs3.70 and 4.61 on Rs74.80 and Rs87.64 respectively.
Hub-Power and PTCL also came in for active selling and fell by Rs1.56 and Rs1.19 at Rs34.79 and Rs22.61 on 9m and 6m shares respectively. Others also fell where changed.
DEFAULTER COMPANIES: Dominion Stocks came in for strong support and was quoted higher by Rs1.05 at Rs3.95 on 1.061m shares. Al-Asif Sugar and Quice Foods unchanged and lower five paisa at Rs1.20 and Rs1.25 on 14,000 and 11,500 shares respectively.
DIVIDEND: Dewan Khalid Textiles, Dewan Textiles and Dewan Mushtaq Textiles, each cash five per cent plus bonus shares of 10 per cent, Haseeb Waqas Sugar 10 per cent interim and Usman Textiles cash interim 300 per cent.
BOARD MEETINGS: Southern Electric, Shifa International, Union Leasing, Professional Modaraba on Jan 6 and Union Bank on Jan 7.