Equities for the second consecutive session on Wednesday registered decline, wiping early morning gains and forcing seasoned investors to stay away from the rings, sliding the daily volume by almost half. The KSE-100 index depicted a fall of 80.64 point, dropping to 7409.07 from 7489.71.
Trading volume declined to 169.47 million shares as compared to 312.61 million shares of Tuesday. PTCL, OGDC, and PPL contributed 25, 20.3 and 15 points, respectively, to the fall.
Stray two-way business was witnessed in the ring ending in a sharp decline towards the end of the day. The index opened on a positive note but failed to extend the run-up as investors liquidated their positions in PTCL and OGDC due to switchover positions from June to July contracts.
However, PSO managed to remain in positive territory as rumours circulated in the market about its bidding date being announced within the next week.
Pioneer Cement closed positively on the back of its expansion programs and news of NBP backing its finances. Institutional interest in the market was limited as the end of the fiscal year inches closer. Hence, their reluctance to indulge in taking further positions in the stock market.
Tanvir Abid, head of research at Live Securities, said that the market descended further, failing to hold the 7500-point level on the back of offloading of carryover positions and ongoing squaring of the June futures contracts.
PSO was in the limelight, remaining heavily in the positive zone for most of the day on expectations that headway towards the company''s privatisation was expected soon. According to a report published in a local newspaper saying that the Privatization Commission might announce the short-listing of parties and strategic sale schedule of PSO during this week.
The Treasury Bills auction kept cut-off rates intact, though the SBP sucked up higher than expected amount. PSO''s intra-day gains were almost completely wiped off with, the scrip showing only Rs 0.50 net gain.
Lucky Cement''s positive run continued with the scrip gaining an additional 1.8 percent. Pioneer Cement managed to depict Rs 0.30 increase following its financing agreement with NBP. Besides this, a disappointing picture was seen. OGDC, PPL and PTCL lost 1.1 percent, 2.4 percent and 2.3 percent, respectively.
D.G. Khan Cement and NBP were other prominent losers portraying respective declines at 3.0 percent and 1.4 percent. Fundamentally, market outlook was positive. Investors should focus on NBP and BoP, given the forthcoming announcement of the NIT dividend.
Hasnain Asghar from Aziz Fidahusein said that with June closing around the corner, the market continued to search for avenues of liquidity. Badla was used to avoid slump at the year-end in the past. The general consensus was that the market would find support of fresh funds in next month and the stocks expected to come up with improved earnings would be the rally initiators. Constant pressure, however, continued to make investors think twice. Inability of the index to close above support of 7450-7457 might force the index to test its major support of 7330-7337. Accumulation is therefore recommended on dips while strength in the stocks not likely to report growth can be looked for offloading as the expected rally next month would not be broad based.
PTCL suffered a decline of Rs 1.70 to Rs 66.95 on a volume of 47 million shares. OGDC lost Rs 1.15 to Rs 103.60 on business of 23 million shares. D G Khan Cement depicted a fall of Rs 1.70 to Rs 56.40 on trading of 14 million shares, PSO moved down by 50 paisa to Rs 384.75 on 13.7 million shares; and PPL slipped to Rs 214.50 to Rs 219.75 on deals of 13.4 million shares.