960408

Bears moving

towards kill

JMJ

KARACHI: The international markets were closed due to the Easter holidays hence the activity in the market was limited to the local buyers and sellers.

The alarming situation at the stock market prevailed as the trading on Monday was limited only to the speculative items and as the badla chart shows that the bears are slowly moving towards the kill as the bulls are realizing that to hold shares paying high interest rates is not feasible.

The badla rates were as follows:

PTC .10 paisas DSFL .15 paisas

ICI .10 paisas MCB .13 paisas

FFC .90 paisas (ulta)

This week the badla rate for two items Hub Power and Lucky Cement were nil as this indicates that the buyers and sellers were equally poised. FFC ulta badla indicates that the delivery of the shares by a major institution has still not been solved and this is likely to continue this week. There were indications that they would be in a position to deliver the shares last week but it seems they were trying to bluff the market to ease the price.

The kerb rates for PTC and Hub Power were Rs 32.75 and Rs 28.75 respectively. Trading in the kerb was very limited as the political situation was not clear and the hopes for a reconciliation were dim among the political groups.

There are various rumours that the privatization of PTC would be delayed but one should keep in mind that rumours are rumours. But one thing is positively sure that investors should take opportunities of the falling prices and avoid speculative buying.