The share market on Wednesday remained unsettled and shaky to close at 5,352.95, after it registered a decline of 15 points with the trading volume of 167 million only.
Though, the market opened on a positive note, broad-based selling forced it to spend most of the time in the negative territory. The continued speculative buying of the previous session in the oil and gas sector allowed the market to depict some initial gains.
However, absence of any positive news and hesitation of investors on account of volatile law and order situation soon evaporated the gains and allowed the bears to hold the reign.
Under across the board selling pressure the market touched the intra-day low of 5,342, but short covering, specially in some of the banking stocks at the low levels helped the market to recover to some extent.
The announcement of 10 percent interim bonus from Union Bank also failed to trigger any major buying spree as the investors remained shied to participate in the sluggish rally.
On the other hand, the auction by PTA for WLL frequency and the expectation that President Musharraf will announce some bold initiative pertaining to the construction of important dams on August 14 also could not generate desired activity in the related telecom and cement sectors.
However, on the assurance of uninterrupted gas supply till March 2005 from the government, the fertiliser scrips performed better and restricted any further declines, prompted earlier by the news of reduction in urea prices and ban on its exports.
The KSE-100 index shed 15 points or 0.279 percent to close at 5,352.95 as against 5,367.95 of Tuesday.
The trading volume stood at 167 million shares after registering a massive cut of 148 million shares as compared to 315 million shares of the previous day, while the market capitalisation amounted to Rs 1,444 billion as against Rs 1,449 billion a day earlier.
The badla investment also decreased by Rs 0.35 billion from Rs 27.49 billion to Rs 27.14 billion.
According to an analyst, there was no major movement in the share prices in the market, wherein POL and NBP were the steadiest shares as investors built their positions foreseeing healthy results.
Adil Ehtesham of Multiline Securities said that cognisant of both the market's relative strength over the past three sessions and its tendency to give up gains in recent weeks punters and institutional investors had simply been eager to take profits on Wednesday.
Another analyst, Hasnain Asghar Ali, said that likely announcement of construction of dams and highways by President Musharraf on August 14 was expected to invite consolidation and increase in the badla float, however, it forced the buyers to wait for adjustment.
He said that institutional buying in the main stocks on dips allowed the index to find support and the low volume adjustment invited mild recovery to a closing above 5,350.
Technically, the index might face mild pressure upon opening, while the support of 5,325-5,333 will invite buying in the main and side board stocks, whereas the resistance continues to fall around 5,390-5,397, he added.
OGDC down by 10 paisa at Rs 65.25 on the business of 16 million shares, MCB up by 60 paisa at Rs 54.95 on the trading of 14 million shares, National Bank decrease by 15 paisa at Rs 73 on a turnover of 12 million shares, PTCL lose 45 paisa at Rs 42.65 on the trading of 10 million shares, Maple Leaf Cement down by Rs 1.25 at 38.25 on 10 million shares, Union Bank increase by Re 1 at Rs 32.80 on business of 9 million shares, Chakwal Cement gained 25 paisa at Rs 8.95 on the transactions of 9 million shares, D.G. Khan down by 45 paisa at Rs 56.50 on 8 million shares deals, Sui Northern Gas down by 20 paisa at Rs 63.60 on the turnover of 6 million shares and Lucky Cement decrease by 85 paisa at Rs 39.25 on the volume of 6 million shares.