Selling spree dampens investors' mood

Past week's selling spree continued at Karachi Stock Exchange on Monday and the index on first session of the new week saw substantial decline in share prices because of panic and confusion over margin financing and capital value tax. The KSE-100 index showed a decline of 53.82 points, or 1.04 percent, to 5118.39 as compared with 5172.21 of Friday. The volume amounted to 110 million shares as against 105 million shares.
The market started melting down as PTCL witnessed fresh selling pressure, alongside OGDC which also shed weight, ultimately dampening the confidence of the investors. PPL tried its level best to keep afloat on the positive side, but later became a victim of panic selling and confusion, said Cyra Patricia from Live Securities.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the only scrip performing in this dull market was PPL which, according to punters, performed well as short sellers were squaring their positions ahead of the settlement schedule.
Results announcement from Pakistan Oilfields was not able to spark interest in the scrip as EPS and dividend pay-out were not as per expectations of the market.
The badla decreased by 400 million rupees. There was badla increase in PTCL and PSO by 4 percent. There was badla reduction in NBP and buy on dip strategy was recommended. The badla rates settled in the range of 6-8 percent.
Shahzad Aslam from SC Securities said that the first day of the new week opened on a negative note and ended with a loss of 54 points.
Hasnain Asghar from Aziz Fidahusein said that technically the inability of the index to find support around 5125-5133 dis-allowed the index to consolidate, while next support stays around 5066-5072.
Although the index has been trimming for two weeks, reduction of meagre 10 percent in COT amount will continue to disallow fresh placements.
Provisionally listed Pakistan Petroleum outperformed the market as the stock invited a turnover of 66 million shares and moved in a band of Rs 5. Inability of the index to register a free-fall, however, indicates presence of hidden buyers as the tempting levels may invite fresh placement by the newly listed mutual funds.
D.G. Khan Cement fell 85 paisa to Rs 55.85 on turnover of 13.2 million shares; Lucky Cement dropped by 10 paisa to Rs 35.75 on trading of 10.1 million shares; OGDC declined by Re 1 to Rs 62.25 on business of 9.5 million shares; Bank of Punjab slid by 25 paisa to Rs 63.90 on deals of 9.1 million shares; and PIAC rose 60 paisa to Rs 12.65 on volume of 9 million shares.