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ISE-selling pressure in major sectors

RECORDER REVIEW

ISLAMABAD: Panic selling in blue chips snubbed the bulls on the Islamabad Stock Exchange last week where rumours hampered real investment amid prolonged correction.

Bears foiled the resurrection effort of bulls throughout the previous week as ISE index saw four dips with a short wave of depression among the investors of Islamabad and Rawalpindi.

However, brokers and investors in the twin cites were not ready to surrender to a back-firing depression and subdued depression at the Islamabad Stock Exchange.

Last week, ISE Network index managed to move between the psychological barrier of 6,383.46 to 6,588.20 points.

Overall volume of ISE stayed between 10,228,850 shares to 11,562,300 shares.

Zahid Latif Khan of Zahid Securities expressed his grave concern over confinement of trade into not more than four stocks. It was against the spirits of healthy trade and open competition. Non-representative nature of ISE Network index has blocked any chance of across the board activation. A true representative index based on payout and dividends might draw investor's attention towards a broad-front trading.

He said that general investors would not participate in stock trade until and unless spillover of demand flows through retail counters. Brokers of the twin cities anticipated that market is looking for certain stimuli to move either way. The market was wavering in ambiguity as vital statistics were portraying divergent movement.

They were divided on perception of market sentiment. Optimists called it-prolonged correction, while other saw ISE in grip of bears and rumours.

On Monday last, the bears entered into arena where selling pressure in volume leaders contracted the overall turnover to 10 million shares. The ISE Network index showed decrease of 45.37 points as Pakistan Telecommunication Company shed almost a rupee in its value. The fresh clashes between the Pakistan and India along the Line of Control and strike call by MQM made the leading investors as well as small holders jittery. However, few brokers termed the Monday's bearish assault as downward technical correction.

On Tuesday, jobbers and margin hunters continued to offload their holdings as losers led the scene and ISE Network index shed 27.26 points. On the other hand, foreign funded brokerage houses took new position in Telecom blue chip that prevented the market from major collapse. Nervous investors and blank sellers of the twin cities booked selling orders in fuel and energy sectors while short covering was witnessed in PTCL.

Bearish spell continued at the Islamabad Stock Exchange where index shed 96.96 points and volume contracted to 10.59 million shares on Wednesday last. Highly overbought position in core scrips and the announcement of India to increase defence budget forced the jobbers and blank sellers to offload their positions. Besides, volume of trade and as well as horizon of activity also shrunk on the floor.

On Thursday, financial institutions and foreigners booked fresh orders in PTCL, PSO and ICI Pakistan amid expansion in volume.

The rumour mongers injected several news like government is expected to increase petroleum prices and President Clinton's visit to Pakistan.

The ISE index witnessed an increase of 41.26 points and volume touched 11 million shares on the second last trading day.

Fuel and energy sector dominated the trading hand activity on Friday as digital desperadoes and speculative forces stole the show. The ISE witnessed buying in the first session and sudden selling pressure in PSO created panic across the ready board in second spell.

ISE Network index lost almost 15.56 points while PTCL and other heavyweights tried their best to give support. The news that PTCL has signed a contract with Canada's Nortel Networks worth $ 50 million supported high technology stock of Communication sector.