The share prices underwent overdue technical correction on Tuesday after six days of gains as financial institutions and leading brokerage houses sold their holdings to book available capital gains.
The KSE-100 index denoted a drop of 14.71 points, or 0.27 percent, to 5429.12 as compared with 5443.83 of Monday.
The volume rose to 866 million shares as against 781 million shares where market capitalisation moved down to Rs 1.450 trillion from Rs 1.453 trillion.
The market, encountering a much awaited correction, fluctuated in both columns.
The market opened on a positive note but failed to capitalise. It went down immediately as investors offloaded their positions as a result of increased COT volumes and rates. However, the cement sector remained under spotlight mainly due to the encouraging news of increase in export prices from $35 per to $40 per ton.
Banking sector also remained positive as the news of good corporate earnings of major players rescued the market from disastrous closure.
The market was overbought for quite some time and the index kept on rising after it crossed important barriers of 5200, 5300 and 5400 points without undergoing any sort of major correction.
According to an analyst, the market during the first half hour advanced in the plus column, but spent the remainder of the day not doing much other than drifting sideways in a relatively tight trading range of 5473 to 5408.
The stocks which suffered erosion were PTCL, Hubco, PSO, Fauji Fertiliser, Engro Chemical, Faysal Bank and National Bank.
Some of the volume leaders saw aggressive buying, especially Dewan Salman, on rumour that the government in the next budget is likely to allow incentives on PSF export. However, offloading from retailers pushed the index down, wiping early gains.
Technically, the closing indicates that the index would continue to find support around 5403-5410 while immediate resistance stays around 5463-5469.
It is, therefore, recommended by the dealers to accumulate main and growth stocks around support levels as the economic development and growing chances of foreign investment have placed the bourse in a comfortable position.
OGDC rose 15 paisa to Rs 64.50 on business of 101 million shares; Dewan Salman moved up to Rs 28.10 from Rs 27.30 on turnover of 92 million shares; PTCL closed at Rs 42.85, ie lower by 50 paisa on trading of 81 million shares; MCB showed an increase of Rs 2.30 to Rs 63.10 on deals of 76 million shares; and D.G. Khan Cement lost 20 paisa to Rs 57.10 on a volume of 61 million shares.
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