Losers outnumbered gainers on Wednesday following eruption of selling pressure before the closure of the stock market erasing earlier gains.
The KSE-100 index recorded a decline of 14.38 points, or 0.26 percent, to 5426.11 as compared with 5440.49 on Tuesday. Volume finished at 219 million shares as against 266 million shares.
The market during the morning session saw an appreciation of 32 points, but selling from financial institutions and leading brokerage houses resulted in widespread erosion and index landed in the minus column. Pivotal suffered decline under the lead of NBP, PTCL, Bank of Punjab and Lucky Cement.
The positive sentiment, however, allowed the index to digest the increase in cut-off rates, after S&P has improved Pakistan's credit rating. The inability of the index to consolidate around 5457-5470 never allowed the index enough strength for a major breakthrough and the day end witnessed a mild adjustment.
Institutional buying in leading telecommunication, banking and oil and gas stocks is likely to continue while bonus rumours on Fauji Fertiliser would continue to invite punters at closing levels as the sellers are likely to wait for the announcement due on July 29, 2004.
Technically, index will continue to find support around 5410-5417 while the overhead resistance stays around 5470-5477.
Cyra Patricia from Live Securities said that the index failed to capitalise on its previous gains as big players wanted to put the market under pressure. During the earlier part of the session, punters took fresh positions and picked OGDC and cement stocks.
Later, profit taking in these stocks became transparent as the market began melting. It was expected that the market would close on a negative note due to high CoT volumes accumulating with investors. We strongly advise investors to remain on the sidelines and suggest investments in short and medium terms due to improved corporate results.
PSO managed to remain in the limelight for most of the session as positive results are expected to be announced in its board meeting, which is around the corner.
Ahmed Ashraf said that the early surge did not sustain, as the market could not breach the 5500-barrier. The market may improve as the PPL share subscription is finally over and also as the company results are around the corner. The badla decreased by 240 million rupees. The badla in National Bank of Pakistan and D.G. Khan Cement are high and recommended caution in these shares. The badla in OGDC decreased by 7 percent.
OGDC fell five paisa to Rs 66.85 on a turnover of 39 million shares, NBP dropped by 65 paisa to Rs 71.90 on a trading of 21 million shares, PTCL lost 25 paisa to Rs 44.30 on a volume of 20 million shares, Bank of Punjab moved down to Rs 67.95 from Rs 68.75 on a business of 17 million shares and FF Bin Qasim gained 25 paisa to Rs 19 as around 14 million shares changed hands.
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