20000214

ISE moves in narrow band

SOHAIL SARFRAZ

ISLAMABAD: Islamabad Stock Exchange moved in a narrow band last week where selling pressure dominated the changing hand activity following absence of motivating factors on the economic front, brokers said.

The investors during the first session of the last week struck sizeable deals in PTCL and Hubco with participation of major players and financial institutions. However, rest of the week moved around selling orders and profit-taking where bulls and bears had a close fight to capture the floor of ISE.

During last week, several institutions as well as brokers stayed away from the rings owing to Hubco's low profit and jobbers continued to off-load their positions to book profits, they said.

Different sorts of rumours engulfed the Islamabad market, which allowed manipulators and profit hunters to enter into an arena amid profit-taking in hot favourites. Weak holders followed the suit as everybody seems to be waiting for speedy privatisation of public entities through bourses and financial results to be announced by some of the companies next month, they stated.

Seasoned brokers said that last Monday, buying spree in the communication sector expanded the volume of ISE to 17 million shares, whereas index showed an increase of 64.73 points. The determination of government to resolve Hubco issue and positive signs from the international donor agencies encouraged the institutions as well as foreign-funded brokerage houses to enter back in game.

On Tuesday, profit-taking in heavyweights halted the positive movement across the board as the downward technical correction contracted the trade volume to 11 million shares. Blank sellers and margin hunters squared their positions in Telecom blue chip and Hubco with marginal increase in ISE Network index.

Selling pressure continued at the Islamabad Stock Exchange on Wednesday where equities faced broad-based erosion amid speculative trading. Losers outclassed gainers and the index was down by 42.45 points due to low profits announced by Hubco.

Brokers further said that on Thursday, equities moved in a tight band as 174 stocks changed hands. ISE index was up by 32.21 points where both fresh buying and selling pressure came from the financial institutions and leading investors.

Friday being the last trading day of the week, all hot favourite sectors like communication, fuel, fertilizer, energy and banks suffered heavy losses. Selling pressure in heavyweights effected the low priority stocks as well and the ISE index lost 94.64 points. The overbought situation of the market resulted in selling pressure which ultimately created fear of high Badla rates among the small investors.