The stock market for the second consecutive session received battering from bears, and index closed in a negative territory where lack of support from institutions shrank the daily volume. The KSE-100 index fell 15.74 points or 0.3 percent to 5367.68 as compared with 5383.42. The business fell to 100 million shares as against 179 million shares of Wednesday.
Hasnain Asghar from Aziz Fidahusein, said the offloading by the institutional trading portfolios restricted the high worth individuals from stepping forward, viewing that US elections would have an impact on the market further confused the market men, thereby disallowing them to take advantage of low levels.
The institutions, however, came in for fresh placements in Fauji Fertiliser, OGDC and other frontline stocks thereby, allowing the index to find support around 5361-5367 after making an intra-day low of 5351 indicates support on adjustment while overhead resistance stays at 5425-5433, he added.
A leading dealer from Elixir Securities, said the downward pressure continued as the market took a dip for third consecutive day, adding the PTCL announced first quarter results of an EPS of 1.23 rupees lower than market expectations, which pushed the stock further down to 38.35 rupees.
Oil stocks were mostly under pressure as earlier OGDC results did not excite the market much, and international oil prices retreated by 5 percent from peak levels. The market is losing its aura and results either way are not having much of an impact leaving weak holders to surrender under these conditions, he said.
He said the market is likely to float in the negative zone and expect index to further deplete in coming days, but at the same time we would go long in PSO, Sui Northern, Fauji purely on fundamentals as they could outperform the market.
Humbal Haroon Katia from Akbarally Cassim, said since the opening of the market was under pressure, as the volumes were extremely low, adding Engro and Fauji performed well in the earlier part of the session as punters expect better earnings next quarter due to increase in the prices of urea.
Oil exploration and marketing companies were under pressure as the international oil prices closed near $52 a barrel, he said, adding the PTCL result announcement failed to erupt any major selling in the scrip, since the event was already factored in.
The badla increased by 200 million rupees. There was an increase in badla in PTCL by 3 percent as investors took position in the share after the first quarter announcement was close to expectations. The dull activity in the ready market carried over to the badla market, as there were no major changes in the badla volumes or rates.
OGDC lost 30 paisa to Rs 66.35 on a volume of 12.493 million shares, PTCL lost 25 paisa to Rs 38.35 on a trading of 10.762 million shares, Fauji Fertiliser Bin Qasim lost 20 paisa to Rs 20.85 on a turnover of 7.293 million shares, Engro gained 65 paisa to Rs 99.10 on a business of 5.661 million shares and DG Khan Cement rose 20 paisa to Rs 49.40 on transaction of 5.228 million shares.
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