The rising badla investment deterred fresh investment in the stock market on Friday and selling pressure from the weak holders and some brokerage houses eroded share values.
The KSE-100 index fell 51.10 points, or 0.94 percent, to 5387.84 as compared with 5438.92 of Thursday. The volume declined to 230 million shares as against 232 million shares.
Shahab Farooq, research analyst from First Capital Securities, said that the market underwent correction and after the first session the news came that PTCL has reduced its connection charges and waived charges during night hours. This development fuelled bearish sentiment in the market leading the index towards its day's low of 5371. PSO remained positive on various news including bonus expectations and rumours regarding privatisation.
"We believe that the market has gone through a reasonable amount of correction and in the coming week we expect that the market is likely to consolidate at current levels," he said.
Ahmed Ashraf Sheikh from Akbarally Cassim said that the prices fell throughout the session. National Bank was the strongest scrip of the day as 21 million shares were accumulated at an average of Rs 71.60. PSO also sustained its price level as board meeting is expected on July 29. The market welcomed free late night calling option from PTCL as investors expect the company profits to increase, as new connections would be subscribed due to this incentive. Cement stocks were the major losers of the day as most scrips traded close to their lower circuit limits.
Cyra Patricia from Live Securities said that the stock market moved in a wide range, translating into a fluctuation of 81 points during the day and failed to generate a positive pattern despite encouraging reports related to all quarters in the economy as punters started selling of their major stocks.
The index melted considerably and thus could not manage to sustain above the 5400 level. One of the major reasons attributed to the selling pressure was that potential investors were shying away in order to hoard sufficient funds for the PPL IPO.
"We remain optimistic and expect the market to move in the positive boundary in the coming week, on account of political stability and the PPL IPO, which is just two days away", she said.
D.G. Khan Cement lost Rs 2.10 to Rs 57.30 on turnover of 24 million shares; Nishat Mills gained 30 paisa to Rs 55 on trading of 23 million shares; National Bank rose 50 paisa to Rs 71.80 on business of 21 million shares; Bank of Punjab shed 60 paisa to Rs 66 on a volume of 18 million shares; and OGDC suffered a decline of 80 paisa to Rs 66.05 as around 13 million shares changed hands.
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