The market for the second consecutive session witnessed selling pressure and the index after breaching the 5500 level was forced to close in a negative territory. The KSE-100 index fell 12.49 points or 0.23 percent to 5452.87 as compared with 5465.36 of Wednesday, while the volume amounted to 275 million shares as against 258 million shares.
Azhar Javaid of WE Securities, said the market again faced stiff resistance at 5500 level, adding the general downward trend was mitigated by increased buying in PTCL due to its planned entry into WLL segment and better than expected results by Hubco.
He said the market has twice breached the 5500 level, and failed to sustain it, but it stayed range-bound.
Cyra Patricia from Live Securities, said the high COT rates once again kept the market far below the 5500 though it managed to touch this level during the session, adding: "We expect the market to remain under pressure for weekend period, as investors have offloaded all sideboard items, which have resulted in a technical correction.
Ahmed Ashraf Sheikh from the Akbarally Cassim, said the market opened on a dull note with very thin volumes, however activity soon built as both the PTCL and the OGDC led the volumes, adding the index made an intra-day high of 54 points, but again it failed to sustain the psychological barrier of 5500.
The result announcement of Fauji Cement triggered the selling pressure in the scrip, as the earnings of the company were not according to the market expectations, while Hubco results sparked the buying interest in the scrip as earnings figures were in line with company's expectations, he said.
The badla increased by 160 million rupees. There was major badla increase in Hubco by 7 percent as the better than expected results brought the weak-holders to take positions in the share. The badla rates are still at high levels of over 15 percent as the high rates in the money market jacked up the rates offered by the financiers.
Hasnain Asghar from Aziz Fidahusein, said the increase in dollar's rate and high lending rates in money market created unrest amongst the players. Technically, he said the index is likely to consolidate around 5425-5433 to recharge the resistance of 5503-510, as for the index to register a major breakthrough the closing above 5483 is crucial. The last trading session of the week is likely to invite offloading, thereby allowing the support to come into play. It is, therefore, to accumulate leading stocks around support levels, inability of the index to close above 5425-5433 might further push the index.
PTCL gained 45 paisa to Rs 41.05 on a turnover of 47.858 million shares, OGDC remained unchanged at Rs 66.15 on a transaction of 29.567 million shares, TRG rose 30 paisa to Rs 14.40 on deals of 18.744 million shares, Fauji Fertiliser Bin Qasim lost 40 paisa to Rs 20.85 on a business of 18.555 million shares, and Hubco moved up to Rs 30.30 from Rs 29.50 on trading of 16.618 million shares.