20000310

Buying at dips

averts larger

fall on KSE

RECORDER REPORT

KARACHI: The trend at the stock market for the second consecutive session on Thursday was bearish where most of the hard core scrips under went heavy selling but buying at dips prevented a larger fall.

The KSE-100 index declined by 9.44 points to 1958.81 against 1968.25 of Wednesday. The volume amounted to 286.033 million shares as against 299.807 million shares of Wednesday.

Three hundred and seventeen companies were called on the ready board. Of these 82 showed plus signs against 172 losers, while 63 remained unchanged. The market capitalization moved down to Rs 496.962 billion from Rs 499.740 billion.

The trend was bearish as the investors were reluctant to build sizeable positions in the select scrips. They ignored two positive reports Ñ the finance minister Shaukat Aziz's statement that within four weeks an International Monetary Fund mission would arrive in Pakistan, and that the stock market saw a fresh investment of $42 million in shape foreign investment.

A leading trader said that the market was expected to recede further until the government shows some positive development in the privatisation of some of the state-run companies. However, reports circulated in the market that Saleem Altaf, the Chairman of Privatisation Commission (PC) has said that the government was willing to offload 5 to 10 percent shares of gas companies and Goldman Sachs the financial advisor for PTCL might conduct road shows by April.

Faisal Abbas of AHR Securities said that the start of the day was not encouraging where selling commenced from initial hours by the local financial institutions in the fiber and fuel and energy sectors, which eventually dragged down the prices. But news regarding the meeting devised by the Goldman Sachs-advisor for PTCL privatisation, in the next month reached here and helped the index not only to recover but also gain slightly.

"Unfortunately, the bulls were unable to control the entire sentiment on account of continued selling pressure by not only local institutions but also the weak holders, who panicked and started selling at the available prices levels, as settlement day was approaching, and for fear of high carry over trading charges."

ICI surprisingly registered smart growth and recorded a rise of 50 paisa which according to the market punters was in a result of blank sellers' short covering.

Mohammad Zubair Ellahi of KAB Securities said that the significant slide in second tiers in an overbought market sent a note of caution. The only factor that was preventing a much larger decline was relative stability in index stocks due to shrinking float.

The current trend of significant edge of losers over gainers might continue resulting in a broader market decline whereas consolidation in main actives. The broader term outlook was still positive with immediate pressure.

ICI on a volume of 77.510 million shares recorded an increase of 50 paisa to Rs 15.95, Hub Power moved up to Rs 28.55 from Rs 28.05 as nearly 74.071 million shares changed hands, PTCL on a trading of 63.943 million shares showed a drop of 15 paisa to Rs 33.25, PSO on a turnover of 19.116 million shares remained unchanged at Rs 261.50, and Ibrahim Fibers on a business of 7.034 million shares recorded a fall of 65 paisa to Rs 14.20.