Bargain hunters stole the show and took advantage of the rally build up during the session, resulting in widespread erosion, pushing the index into the minus column. The KSE-100 index recorded a small decline of 2.16 points, or 0.03 percent, to 7215.44 as compared with 7217.60 of Wednesday. The volume rose to 88 million shares as against 74 million shares.
The KSE-100 Index opened in the positive note, but dropped in the afternoon as mounting selling pressure depressed the market sentiments. At one point of time, the market touched 7300 points, but failed to restore investors'' confidence as all players shied away to acquire fresh positions, resulting in a steep decline towards the end of the day. The only positive thing was better than expected corporate earnings as investors entered the ring and picked up shares during the day.
Trading volumes remained weak at 89 million shares, but higher compared to 74 shares registered Wednesday last. PSO seemed to be the scrip causing the most uncertainty in the minds of investors, but it was clear that institutional selling was at play. Going forward, analysts said investors to remain cautious as market participants have lost their confidence.
However, any positive outcome from the "Tareen Committee" may generate buying interest as the final round is expected to take place on Friday to resolve the COT situation.
Hasnain Asghar from Aziz Fidahusein, said the news that proposals prepared by the "Tareen Committee" to be presented to PM''s Adviser on finance Dr Salman Shah would undergo fine tuning on Thursday and final decision would be taken by him on Friday.
Expectations of a positive outcome of the crucial meeting and expectations of healthy profit announcements by Fauji Fertilizer and PSO invited buyers, thereby allowing the index smooth consolidation around the support of 7227-7233.
Although short-covering allowed the index an excited bull-run, which resulted an increase of as much as 88 points.
The outstanding announcements by Fauji Fertilizer 40 percent cash dividend and 15 percent bonus and PSO 100 percent dividend to get the deserved protocol. But day-end offloading forced the index to wipe off entire gains registered during the session.
Low volumes and inability of the market to find strong base have forced the trimming of portfolio''s availability of avenues for leverage would, however, allow the index to find a fast track.
It is, therefore, recommended to wait for outcome of the grand meeting on Friday, while adjustment should be capitalised in main stocks.
PTCL rose five paisa to Rs 60.65 on a business of 11 million shares, Fauji Fertilizer gained Rs 1.60 to Rs 134.10 on a turnover of 9.8 million shares, OGDC increased by 55 paisa to Rs 102.65 on a trading of 7.6 million shares, Crescent Standard Bank fell 40 paisa to Rs 15.60 on a volume of 6.3 million shares and PPL slipped to Rs 168.70 from Rs 171.50 on deals of 6.3 million shares.
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