Declines slow down on KSE

The tally of declines slowed down at Karachi Stock Exchange on Wednesday following healthy results from the corporate sector showing that companies have maintained growth levels and soon would attract buying from seasoned investors. The KSE-100 index fell 6.93 points to 5383.42 as compared with 5390.35 of Tuesday. The volume amounted to 179 million shares against 231 million shares.
The index stayed range-bound but nervousness prevailed throughout the session, the basic reason being the on going swap from October to November forward. The expected quarterly announcements of Fauji and OGDC kept the activity alive thereby allowing gas the company to stay volume leader.
Punters are working on 'buy-on-rumour, sell-on-news', thereby offering no respect to the handsome payouts. The ongoing week is likely to stay dull as the next support stays around 5361-5367 while the overhead resistance stays around 5425-5433.
Aadil Ehtesham from Multiline Securities said that some short-term retrenchment during midday on account of short-covering pushed the equities near their highs but gains in general were not broad-based.
Slight selling in cement, oil, gas and banking stocks incessantly constrained recovery efforts whilst lack of activity in terms of volume also brought majority of the genuine investors on the fence.
Cyra Patricia from Live Securities said that the extension of Tuesday correction chipped off a few more postings from the index.
The blue chips were at lower levels but still the underlying sentiment was bullish. Despite SBP's decision to raise cut-off yields on its three- and 12-month treasury bills by 36 basis points and 72 basis points, respectively, market fundamentals appeared to be positive.
The index may witness positive activity in days to come but mixed sentiment is likely to prevail on Thursday.
Humbal Haroon from Akbarally Cassim said that badla decreased by 260 million rupees. There was badla reduction in PTCL by 7 percent as Tuesday's losses in the ready market forced the weak holders to offload their positions.
The badla rates at below 11 percent and volumes near 24 billion rupees have reduced during the last few days from high levels.
OGDC rose 10 paisa to Rs 66.65 on business of 43.6 million shares; Fauji Fertiliser Bin Qasim rose 15 paisa to Rs 21.05 on a turnover of 26.956 million shares; PTCL remained unchanged at Rs 38.60 on trading of 15.915 million shares; Fauji Fertiliser moved up to Rs 115.75 from Rs 112.25 on volume of 12.769 million shares; and TRG lost Re. 1 to Rs 13.10 on transactions of 8.92 million shares.