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Equities undergo erosion on ISE

RECORDER REPORT

ISLAMABAD: Profit-taking in speculative scrips on Wednesday encouraged the bears to enter into arena where equities faced broad-based erosion amid decrease in index.

Selling pressure in Pakistan Telecommunication Company Limited and Hubco forced the weak investors and profit-seekers to offload their positions, while genuine investors preferred to remain at the sideline.

The ISE index fell by 42.45 points as the psychological network barrier moved from 5,840.74 to 5,798.29 points.

The overall volume expanded to 12,864,440 shares as compared to last turnover of 11,340,400 shares.

In total 148 active companies participated in buying and selling game. Losers were almost double than gainers at a ratio of 84:44, while 20 stocks remained pegged to their previous levels.

Marketmen termed the present reverse rally as a result of low profit announced by Hubco. The news disappointed leading investors and short-sellers, where speculative activity in other blue chips also affected the ready board, they added.

The PTCL decreased by Rs 1.30 on a business of 11,845,000 shares as it resumed trading at Rs 30.65 and finally closed at Rs 29.35.

ICI Pakistan opened at Rs 13.20 and closed at Rs 13.10. ICI was down by 10 paisa on a business of 457,500 shares. The PSO shed Rs 1.60 during the trading of 50,300 shares. PSO resumed trading at Rs 221.40 and closed at Rs 219.80. FFC Jordan was up by five paisa over 65,500 shares. Fauji Fertilizer shed Rs 1.10 on a business of 6,500 shares.

The market resumed trading on a healthy note with expansion in overall turnover in the first session. Selling pressure in PTCL and Hubco took the market in negative direction and market remained in minus territory throughout the day and finally closed on a depressed note, said Zahid Latif Khan of Zahid Securities.

Hubco opened at Rs 27.50 and went up to Rs 28.05 before bouncing back to Rs 27.45.

He said profit-taking in core scrips badly affected other sectors like banks, leasing, fuel, energy and chemical.

Among the top gainers, Knoll Pharmaceutical gained Rs 5, National Refinery Rs 4.80, Pak Datacom Rs 2.25, Lever Brothers Rs 2, Kohinoor Weaving Rs 150, Blessed Textile and Packages Limited Re 1 and Chashma Sugar soared by 65 paisa.

Among the major losers, Nishat Mills shed Rs 7.90, BOC Pak Rs 3.75, Shakarganj Mills Rs 3.50, PILCORP Rs 2.15, Bank of Punjab Rs 1.25 and Al-Towfeek Inv. Bank shed Rs 1.20.