The share prices received minor correction on Thursday following a continuous rise in the index where volume was still on the higher side, indicating brisk participation of seasoned investors and financial institutions.
The KSE-100 index registered a decline of 27.65 points, or 0.35 percent to 7769.21 as compared with 7796.86. The business recorded at 387 million shares as against 419 million shares of Wednesday.
The market underwent small correction after steady increase in share values for last five sessions. The index has recorded a gain of almost 270 points and want of some correction. The decline in share values would force the investors to offload their positions, which would help reducing the leverage level of the market men. Decline in CFS value on Thursday to help new funds to filter in the market.
There was a general opinion that the index would see some more correction during the morning session which would make the scrips more attractive for the rest of the trading period.
The index easily breached the 7850 level during the session failed to sustain, showing that gains in pivotal is triggering profit-taking activity. However, some of the traders were of the view that if the market witnesses a negative closing on weekend, then there is a possibility that the index may breach 7700 level next week.
However, positive closing with corporate results from OGDC, PTCL, Pakistan Oilfields and National Refinery around the corner, and the index would see some major activity.
Hasnain Asghar from Aziz Fidahusein, said the highly overbought situation and badla close to its maximum limit of Rs 25 billion kept the market under pressure. The presence of buyers in selected stocks on dips restricted any major downfall, and the range-bound market, however, witnessed extreme movement towards the closing bell.
The rumour that OGDC and PPL are going for re-negotiating their gas selling prices with the government invited a bull-run in the stocks. The overbought lobby, however, thoroughly capitalised on the strength and massive across the board offloading was witnessed that, in turn, wiped off entire losses, and the index closed with a loss of 27 points.
Technically, the index would continue to face resistance around 7803-7810 while support stays at 7690-7696.
OGDC lost 15 paisa to Rs 114.10 on a volume of 127 million shares, DG Khan Cement shed five paisa to Rs 62.10 on deals of 33 million shares, MCB climbed to Rs 106.75 from Rs 104.50 on a business of 29 million shares, BoP closed at Rs 96.50, dropped by Rs 2.90 on a turnover of 25 million shares, and PTCL decreased by Rs 1.30 to Rs 65.50 on a trading of 25 million shares.
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