Despite announcement made by the Securities and Exchange Commission of Pakistan (SECP) regarding extension in COT (carry over transaction) till August 3, 2005, the local stock market remained under the grip of bearish sentiments on Tuesday. The equities registered losses amid descending transaction volume on account of lack of interest on the part of institutions as well as potential investors.
The LSE-25 index went down 168.11 points, closing at 3493.69 against 3661.80 of Monday, while trading turnover squeezed to 36.257 million shares as compared to 68.586 million shares traded a day earlier.
Picic, Muslim Commercial Bank, National Bank, Union Bank from the banking sector, PSO, OGDC and Sui Northern from oil and gas sector led the equities downward, while Fauji Fertiliser also remained under pressure, whereas Nishat Chunian and Crescent Commercial Bank resisted the pressure.
The market opened on a depressed note and remained in negative zone throughout the day. The investors wanted to offload their holdings, but the absence of buyers created apprehension among them. The market experts were of the view that market has been struck due to row between SECP and the Karachi Stock Exchange. The repeated notifications issued by the SECP created panic among the investors, said Ahmad Nabeel of Invest and Finance Securities, while commenting on the market sentiments.
Nabeel said the KSE board mishandled the issue of COT, which created crash-like situation once again. Despite extension in COT for another two months, the interest of market players in fresh buying could not be generated, and the bourses are likely to see free-fall days where no good news can play its role in reviving investors' confidence, he added.
He was of the view that 'SOS' calls should be given to the President and the Prime Minister by the stock exchanges and the bourses boards should avoid half-hearted efforts.
Declining stocks were ahead of advancing ones, as out of a total of 69 active issues, only five companies registered gains, 38 went down, while 26 stayed glued to its previous levels.
Among gainers, Nishat Chunian improved by Rs 4.00, Crescent Commercial Bank gained 30 paisa, while PIAC and Dewan Farooq Motors appreciated by 10 paisa each.
In the negative column, Picic lost Rs 10.30, PSO declined by Rs 9.10, while Fauji Fertiliser and OGDC were down by Rs 4.00 and Rs 3.65, respectively.
PTCL was the market leader whose 10.375 million shares changed hands followed by DG Khan Cement with total transaction of 3.970 million shares.
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