After witnessing unprecedented bullish rallies for the last two consecutive days, the stock market on Wednesday finally experienced the much-needed technical correction, losing 52.63 points. The KSE-100 index lost 52.63 points or 0.78 percent to close at 6,657.40 as compared to 6,710.03 of Tuesday. The business volume also experienced some pruning to stand at 953.848 million as against 1029.763 million a day ago. Whereas, the market capitalisation, after shedding about Rs 17.5, stood at Rs 1,841.497 billion as compared to Rs 1,858.953 billion of Tuesday.
Continuing its upward momentum the market opened on a very positive note, up by 72 points, however, the overbought position of stocks did not allow the bulls to perform again. The investors, assessing most of the stocks as overvalued capitalised the initial surge to book profits following which the market underwent selling pressure to finally finish with 52.63 points down. The KSE-100 index initially touched its intra-day high of 6,782.2 and closed near its intra-day low level of 6,651.4.
The announcement from the Pakistan Petroleum Limited (PPL) regarding suspension of gas supply from Sui field due to closure of its purification plant and the deteriorating law and order situation played important role in the prevailing cautious approach of the investors.
The other factor played significant role in compelling the investors to adopt wait and see policy was the 10-20 percent decline forecast in textile unit price after quota elimination.
Commenting on the day's trading pattern, an analyst Ahmed Ashraf Sheikh said that though the market made a very positive opening, selling pressure soon came in and the market hit negative column in a few minutes time. Throughout the day range bound activity was witnessed with the market hovering in the negative column, he added.
The total badla investment decreased by Rs 0.37 billion to stand at Rs 37.08 billion as compared to Rs 37.45 billion of the previous day. There was major badla decrease in FFC, while badla in Hubco increased by 13 percent as the scrip made a handsome gain of 6 percent to close at Rs 34.55.
Among the volume leaders, Hub Power up by Rs 2.20 at Rs 34.80 on 196.043 million shares, PTCL-A down by 25 paisa to close at Rs 53.05 on the turnover of 143.073 million shares, OGDC lower by Rs 1.35 at Rs 77.65 on the trading of 125.842 million shares, Fauji Fertiliser Bin Qasim, higher by Re 1 to finish at Rs 31.80 on the transactions of 108.107 million shares, D.G. Khan Cement eases by 85 paisa to close at Rs 59.15 on the turnover of 44.213 million shares, Pak Oilfields declines by Rs 2.95 at Rs 252.45 on 33.459 million shares, Lucky Cement gained 55 paisa to end at Rs 42.65 on 32.100 million shares, Picic Growth Fund up by 45 paisa at Rs 57.70 on 30.934 million shares, PSO drops Rs 3.85 to close at Rs 324.90 on 28.697 million shares and Fauji Cement up by 5 paisa to close at Rs 16.30 on the turnover of 27.317 million shares.
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