Bearish sentiment continued to rule over the share market for the second consecutive day on Thursday as the KSE-100 Index further plunged by 26 points to close at 5,326.
Initially, on the statement from the Japanese foreign minister that Japan is considering to lift sanctions and is likely to resume yen loans to Pakistan, the market started off with a positive note and the index on across-the-board buying registered the intra-day high of 5,380.
But soon, keeping in view the underlying fragile nature of the market, cautious investors opted to book capital gains at inflated levels, which brought the market under selling pressure to make the intra-day low at 5,319.
The grant of licence from Oil and Gas Regulatory Authority (Ogra) to Mari Gas Company to sell natural gas to industrial units for a period of 30 years coupled with the healthy half-yearly results announced by banks triggered an early buying spree in banking and oil and gas stocks.
However, the bullish rally lasted only for a while and remained unable to provide a solid base to lift the overall market.
As a result, the selling pressure soon resurfaced to hammer the entire market lower.
The ongoing auction of WLL licence from PTA again failed to bring the telecom scrips in the limelight. However, contrary to the prevailing negative market sentiment, cement stocks performed well to close most of the sector scrips in positive column.
In anticipation of good year-end financial results and enhanced construction activity in the coming days, the sector invited active buying wherein investors built and secured their holdings, especially in MLCF, DGKC, LUCK and FCCL.
On the hope of healthy results for FY04, scheduled to be announced on Friday, MLCF emerged as the volume leader of the day on a turnover of 19 million shares and closed at Rs 38.65 after registering an increase of 40 paisa.
The KSE-100 Index declined by 26 points to close at 5,326 as against 5,352 of Wednesday.
The trading volume relatively improved from previous 167 million shares to 195 million shares, while the market capitalisation further decreased to Rs 1,437 billion as compared to Rs 1,444 billion of Wednesday.
Badla investment also declined by Rs 0.26 billion from Rs 27.14 billion to Rs 26.88 billion. The badla rates remained in single digit, as ample liquidity was available in the market.
Technically, the inability of the index to close below 5,330 further pushed the support to 5,310-5,317, while the overhead resistance stays around 5,384-5,389.
An analyst said that the erratic behaviour of the market in Thursday's session was mainly caused by banking scrips, whereas cement stocks largely supported the index to avert further declines.
The last trading session on Friday is likely to witness short covering, while the tendency of the market to discount events might invite a healthy rally in the cement sector, another analyst said.
Maple Leaf Cement rose 40 paisa to close at Rs 38.65 on a turnover of 19 million shares, MCB fall by 10 paisa to Rs 54.85 on a business of 17 million shares, D.G. Khan Cement gained 45 paisa to close at Rs 56.95 on a volume of 15 million shares, F.F. Bin Qasim increased by 5 paisa to reach Rs 21.45 on deals of 12 million shares, Hub Power Co raised by 25 paisa to close at Rs 31.35 on a volume of 11 million shares, OGDC lost 40 paisa to reach Rs 64.85 on a turnover of 11 million shares, Fauji Cement gained 5 paisa to close at Rs 15.75 on a business of 11 million shares, Askari Bank shed 30 paisa to Rs 77.05 on a volume of 10 million shares, National Bank lost 65 paisa to close at Rs 72.35 on deals of 9 million shares and PTCL eased 20 paisa to close at Rs 42.45 on a turnover of 8 million shares.
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