960421

Long term

negative trend

feared

J M J

KARACHI: The market was in the grip of bearish trend, where the SBP move to takeover of United Bank Ltd created a negative sentiment and the pundits believe that the recent happenings are a base to a long term negative trend.

The market may stabilize for a while keeping in mind the short positions and this may be only for a temporary period but the scenario looks bleak and glum.

The quantities decreased considerably, which may prove to be a blessing in disguise as this may indicate that too many people are not getting involved in trading or many of the weak traders and jobbers have been eliminated. The brokers may feel the brokerage pinch but in the long run it could save the firm from bad debts and accumulating losses.

The kerb market was shrinking parallel to the day's trading and it was limited only to PTC and Hub Power. PTC rates were fluctuating between Rs 31.45 and Rs 31.20 and till filing this report the rate was Rs 31.20. There were very strong indications that the privatisation of PTC would take much more time than expected and the response from the advisory has been very slow and stale. There are fears among the market circles that after this clearing day the rate of PTC will break the Rs 30.00 barrier and the index would head to the 1400 mark.

Hub Power with very limited volume in the kerb was at Rs 28.65 and as the market pundits believe that there are chances of a further decline in this scrip.

Under going the present situation, the readers should avoid any kind of investment at the countries equity market and concentrate to invest any other venture if left profitable by the current situation.