20000301

Fag-end recovery prevents big fall on KSE

RECORDER REPORT

KARACHI: Declines slowed down on stock market here on Tuesday where, in the fag-end of the session, smart recovery in PTCL and Hubco averted the larger slide.

The KSE-100 index registered a fall of 11.89 points or 0.61 percent to 1930.61 from 1942.50 points of Monday. The volume amounted to 242.203 million shares, against 233.294 million shares of Monday. Market capitalisation moved down to Rs 493.421 billion from Rs 496.379 billion.

Bears were in control of the proceedings as there were large selling orders, received from the weak hands and sundry jobbers. The stock values trimmed sharply and the index had lost nearly 33 points by 4 pm. However, in the last 15 minutes short-covering in PTCL and Hubco converted the large decline into a soft landing. The index closed with a total fall of 11 points. The sudden change raised hopes among the speculators that there was a possibility that the index might recover some of its losses on Wednesday.

Faisal Abbas, of AHR Securities, said that market sentiment at the start of the day was bullish and the index gained some 17 points, but it went sharply down afterwards on account of selling pressure which emerged from the weak holders. "The current bearish spell is only because of technical correction, which started from the last working day of the week," he added.

He said that the overall outlook of the market was still bullish and punters were hopeful that the market would soon recover in the forthcoming sessions.

The buying interest in PTCL by foreign investors, and also a positive news regarding Hubco helped the index to recover in the end and thus the index closed with a net loss of 11.89 points. A positive announcement by the corporate sector was also a helping factor for the market and eventually attracted the investors to take fresh positions.

Mohammad Zuabir Ellahi, of KAB Securities said that the strength in PTCL prevented a much larger decline. Otherwise, the free-fall in the second tier scrips was telling another story.

He said that the decline was more inclined towards fundamentals-starved speculatives, whereas core investments did not fall in same proportion. The weak badla positions might exert further pressure but buying in abnormal dips is advisable, he added.

PTCL on a trading of 107.227 million shares showed a rise of 35 paisa to Rs 32.10; Hub Power moved up to Rs 27.60 from Rs 27.40 as nearly 39.387 million shares changed hands; PSO on a turnover of 38.996 million shares closed at Rs 245.50, lower by Rs 5.10; ICI on a volume of 13.963 million shares closed at Rs 13.90, lower by 15 paisa; and Sui Northern Gas on a business of 6.923 million shares moved down by 45 paisa to Rs 22.30.