KSE breaches four barriers in reverse gear

The Karachi stock market breached four barriers in reverse gear – 9900, 9800, 9700 & 9600 – on Friday against the expectation as there was no big negative news for the day. The index plunged by 370.44 points to 9,584.79 amid low turnover.

Leading local institutions and brokerage houses offloaded their holdings to manipulate market for their vested interest, a broker said.

Index remained under selling pressure throughout the day and recorded intra-day low of 9,555.03 points.

Sohail Ahmed of JS Research was of the view that the recent corporate results were not up to the market expectations, but on the other hand another analyst contradicted this viewpoint. Others believed that the corporate results were in line with the market expectation, but the end of the month’s rollover week created panic among the investors.

A brokerage house report said that bears completely dominated the market as hefty selling pressure was observed in all sectors. The index closed at the lowest level since July 10, 2006. It lost 978 points during the week.

The decline could be attributed to the fact that Friday was the last day for trading in August futures counter. Furthermore, political uncertainties also marred investors’ sentiment as weak holders reduced their short-term exposure.

Trading volume depicted 39 per cent surge to 167.171 million shares compared to 120.570 million shares traded on Thursday.

Almost 35 scrips closed at their lower circuit breakers. Major scrips that closed limit down in the order of volume included PTCL, DG Khan Cement, PPL, POL, MCB, Fauji Cement, Lucky Cement, PSO, SSGC, Maple Leaf Cement, Engro, Adamjee Insurance, NML, Bosicor, SNGPL, Azgard-9, Pioneer Cement, ATRL and NRL.

On the other hand, heavy battering was witnessed in NBP, OGDCL, FFBL and Faysal Bank as these scrips posted 4.2 per cent, 4.8 per cent, 4.0 per cent, and 4.6 per cent respective declines.

Hasnain Asghar Ali of Aziz Fidahusein & Co said participants having huge deliveries have adopted a practice of selling with extreme force and then covering it probably at the lowest level of the day as they have faced resistance as depicted by low turnover. Although corporate earnings and the growth expected in coming years recommended buying stance, he added.

As many as 287 companies were active across the board, but minus sign remained dominating force as 213 declined and 54 advanced while the value of 20 scrips remained unchanged. Accordingly, the market capitalisation fell by another Rs98 billion to Rs2.702 trillion.

National Bank of Pakistan was the day volume leader with 16.031 million shares. The scrip registered a decline of Rs8.95 at Rs205.70. Oil and Gas Development Company deprived of Rs6 at Rs120 with 15.264 million shares.

Pakistan Telecommunication Company lost Rs2.10 at Rs40.20 with 15.023 million shares. Bank of Punjab decreased by Rs1.45 at Rs83.25 with 9.814 million shares.

DG Khan Cement depreciated by Rs4.65 at Rs88.80 with 9.275 million shares. Pak Petroleum declined by Rs11.55 at Rs220.25 with 9.238 million shares.

Fauji Fertilizer Bin Qasim decreased by Rs1.05 at Rs25.10 with 8.642 million shares. Hub Power increased by Rs1.72 at Rs26.55 with 7.747 million shares.

Pak Oilfields lost Rs17.10 at Rs325.85 with 6.680 million shares. PICIC-XD enhanced by 15 paisa at Rs53.15 with 6.656 million shares.

Forward counter: NBP-SEP led the list of actives on this counter, lower by Rs9.03 at Rs209 on five million shares followed by OGDC-SEP which declined by Rs5.45 at Rs118.65 on four million shares, PTCL-SEP dropped by Rs2.14 at Rs40.71 on three million shares, TELE-AUG lost 81 paisa at Rs11.19 on three million shares, PPL-SEP shed Rs11.75 at Rs223.25 on three million shares.
 Source: The News