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Share index fails to extend overnight rally

KARACHI — Pakistani stocks yesterday failed to extend election-linked rally as investors took profits at the overnight inflated levels on selling triggered by world pressure on the president to lift emergency.

The immediate investor worry appeared to be the commonwealth members’ ultimatum to the president to lift emergency within a week and failure could lead to suspension of Pakistan’s membership.

After showing highly erratic movements within the range of 200 points, the KSE 100-share index managed to finish well above the session’s low of 13,540.38 at 13,621.09, but well the peak of 13,738.36, off 34.38 points.

The massive two-way volatility reflects that investors are unsure about the direction of the market even for short-term and opted for playing safe.

The index boost from the low was aided by GDR-related buying in the MCB and some other bank shares barring National Bank, but leading oil shares including OGDC, were marked down on renewed selling.

Heating up of the local political scenario in the backdrop of Benazir’s proposed long march on Islamabad followed by her house arrest and some other negative developments seem to have robbed investors of the buying enthusiasm linked to the announcement of election date, analysts said.

“Why should one put his money in an uncertain market,” an analyst said “the changing politicial scenario kept investors at their toes all the time and tension sans fair return on investment,” Asharf Zakria a leading stock analyst said.

But Ahsan Mehanti said the important thing is that investors are very in arena and are not playing the game of hide and seek and keeping the wheels moving.

Minus signs dominated the list under the lead of Bata Pakistan and Siemens Pakistan, off Rs22.95 and 85.00, but some leading shares notably Unilever Pakistan and Wyeth Pakistan managed to finish higher by Rs23.00 and 70.00.

Trading volume was light around the overnight level of 220 million shares as losers held a comfortable lead over the gainers at 189 to 160, with 33 shares holding on to the last levels.

TRG again topped the list of actives, lower 45 paisa at Rs13.45 on 15 million shares, followed by Bank of Punjab, up Rs2.00 at Rs96.10 on 12 million shares, Attock Refinery, easy 25 paisa at Rs279.95 on 11 million shares, OGDC, lower 80 paisa at Rs116.10 also on 11 million shares.