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Index fails to extend overnight run-up

KARACHI — After having recovered 300 points during the last three sessions, the KSE 100-share index yesterday again reacted from recent highs on profit-selling in the leading base shares and falling demand but the broader market performed well.

Conflicting rumours about the new economic team, lowering of rating of the local currency and high rate of inflation continued to inspire fresh buying and selling but no one was inclined to take long positions even on the oil sector,being the chief beneficiary of a record rise in world prices,said analyst Hasnain Asghar Ali.

It finally ended off 113.57 points at 14,479.87 as compared to 14,593.44 a day earlier.Its junior partner free-float 30 share index fell by 237.53 points at 17,255.65 or 1.36 per cent.

The MCB, which again received a massive battering after a steep increase in its share value during the last three sessions took the index along with it in the minus column owing to its largest weightage in the index followed by some other leading base shares.

The opening was, however, a bit higher on spillover demand but the mid-session witnessed the return of the bears who indulged in profit-selling at the higher levels in the absence of follow-up support from any quarter.

The larger fall was averted owing to the presence of support at dips on selected counters but the steep decline in the turnover figure reflected investors are in two minds about the future market outlook in the backdrop of shifting positions being taken by the political leaders on some core issues.

"In the developing political situation investors are not inclined to come in a big way despite the fact that the current levels are attractive enough for investment and capital gains," analyst Faisal A. Rajabali said.

But most of them are in no mood to take even calculated risks until a clear picture emerges on the political front, which ensures the return of the foreign investors, he added.

"The prevailing volatility reflects that the market may move one step forward and two backward until sanity returns in the rank and file of the contenders of power," some others said.

Some leading shares managed to put on fresh gains under the lead of Nestle Pakistan and AKD Capital, up by Rs.55.00 and 48.61, while JS & Co and IGI Insurance topped the list of losers, off Rs.19.00 and 10.65.

Turnover figure suffered sharp fall at 168m shares from the previous 232m shares but gainers held a modest lead over the losers at 173 to 166,with 25 shares remaining unchanged. The active list was led by D.G.Khan Cement, lower by 59 paisa at Rs.96.65 on 9m shares followed by Lucky Cement, up 71 paisa at Rs.128.11 on 9m shares, Bank AlFalah, off 24 paisa at Rs.55.86 on 7m shares, Arif Habib Securities, sharply lower by Rs.1.90 at Rs.193.10 on 7m shares, NIB Bank, steady four paisa at 16.44 also on 7m shares.