Stock market bear-dozed

The reference against the Prime Minister filed by opposition, delay in PSO's privatisation and an alleged fraud in BoP created panic selling at Karachi share market on Friday.
Although the start of the market was positive with KSE-100 index attaining 13,575.86 points intra-day high, panic selling pushed it into the red as the investors opted to offload their holdings on available margins.
Bears thus gradually strengthened their position and at one time the KSE-100 index had reached 13,248.79 points intra-day low (a 297 points dip). However, fresh institutional buying at low levels, especially in cement stocks, supported the index to recover some of its loses and to close at 13,392.47 points with a net loss of 153.33 points.
The KSE-30 index also lost 178.88 points to close at 16,699.47 points level. The market witnessed dull trading and the ready market volume declined to 309.178 million shares as compared to 410.088 million shares traded a day earlier. The futures market turnover, however, increased to 92.222 million shares against 73.916 million shares changed hands previously.
The overall market capitalisation declined to Rs 49 billion to Rs 3.890 trillion. The CFS value stood at Rs 54.43 billion against Thursday's value of Rs 54.52 billion. Trading took place in 349 scrips out of which 232 scrips closed in negative column and only 89 scrips closed in positive column while the value of 28 scrips remained unchanged.
Lucky Cement was the star performer with 31.902 million shares and surged by Rs 6.30 to close at Rs 133.05, followed by DG Khan Cement which gained Rs 1.50 to close at Rs 117.90 with a total volume of 29.412 million shares. However, Maple Leaf Cement closed at Rs 23.30, down by Rs 0.55.
The banking sector witnessed heavy selling pressure and BoP and Askari Bank lost Rs 5.70 and Rs 1.35 to close at Rs 108.30 and Rs 99.85 respectively. However, Saudi Pak Bank gained Rs 1.10 to close at Rs 24.00. The energy sector also witnessed profit taking as Mari Gas, OGDC, POL and PPL lost Rs 1.65, Rs 1.25, Rs 3.45 and Rs 1.50 to close at Rs 171.10, Rs 119.25, Rs 332.95 and Rs 263.00 respectively.
auji Fertiliser Bin Qasim lost Rs 0.05 to close at Rs 38.25, while PTCL and WorlCall Telecom declined by Rs 0.05 and Rs 0.50 to close at Rs 54.70 and Rs 17.85 respectively.
Wyeth Pak and Jahangir Siddiqui Co were the highest gainers which gained Rs 50.00 and Rs 20.45 to close at Rs 1800.00 and Rs 429.85 respectively, while Nestle Pakistan and Pak Services were the highest losers which lost Rs 54.00 and Rs 20.00 to close at Rs 1436.00 and Rs 430.00 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that the reference against the Prime Minister by opposition created uncertainty among investors. The investors feared that the case of March 2005 stock market crisis could be re-opened and fresh investigation could be started in this regard. Delay in PSO privatisation and an alleged fraud in BoP were issues which created negative sentiment at the share market.
Muhammad Farhad Qasim at Atlas Capital Markets said that uncertainty on political front and Friday being the last trading day of the week kept the investors on sidelines while institutional investors preferred to offload their positions. A news regarding alleged fraud in BoP triggered massive selling in the scrip.