Stocks heading for new lows on panic selling

KARACHI - The KSE 100-share index yesterday maintained its downward drift on renewed selling and analysts said it was at one stage close to breach its base barrier of 10,000 points but late short-covering in some leading oil shares averted an imminent threat.



By Our Correspondent (KSE Report)

Published: Sat 19 Jul 2008, 12:20 AM

Last updated: Sun 5 Apr 2015, 12:51 PM

At one stage it was down by 453 points at 10,045.43, leading to a strong protest by the brokers and investors against the KSE highups urging them to take some corrective steps to check the market's unprecedented fall followed by a brief interruption in trading.

The close was, however, well above the session's low at 10,212.92, off 278.96 points as some of the leading institutional traders picked up index-heavy shares, notably OGDC, PSO, PTCL and some others at the lower levels to forestall further fall.

The KSE board of directors was in session to discuss a number of proposals including freezing of the lower lock at zero per cent to pull the market out from the current crisis and the details of the meetings are expected to be officially released later in the evening.

“No one could deny the fact that all the factors both local and external, including political, US threats, a terribly weak rupee are bearish,” said a leading analyst Ashraf Zakaria “but the intriguing factor is that leading institutional investors are sitting idle apparently awaiting nod from Islamabad to make a big buck at the current lows.”

He said the market is the victim of buying support and needs confidence building steps, notably official nod to institutional traders to come to the aid of a falling market as foreigners will not put their money in shares in the prevailing situation.

But an other leading analyst Hasnain Asghar Ali proposed that the freezing of both the upper and the lower locks at zero per cent with a view to avoid payments of losses on selected counters could put the brake on fresh price erosions.

The phenomenon of zero per cent locks briefly put in operation allowed the index to show a massive recovery of 37 per cent in the index from the session's low of 10,045.43 to 10,212.92, he added.

Among the top gainers, Unilever Pakistan and HinoPak Motors were leading, up by Rs70.00 and 10.15, while JS & Co National Foods were prominent losers, off by Rs20.74 and 17.59 respectively.

Trading volume showed a modest increase at 90 million shares from the previous 79 million shares but losers maintained a strong lead over the gainers at 201 to 42, with 23 shares holding on to the last levels.

NIB Bank again led the list of actives,easy by five paisa at Rs8.65 on 11 million shares followed by Hub-Power, lower by 60 paisa at Rs24.00 on 10 million shares, OGDC, easy by Rs1.38 at Rs105.50 on 4 million shares, MCB, sharply lower by Rs12.91 at Rs245.34 also on 4 million shares, TRG Pakistan, up 18 paisa at Rs4.68 also on 4 million shares, Pakistan Cement, nominally higher by one paisa at Rs6.20 on 4 million shares and Pakistan Petroleum, off Rs7.80 at Rs195.50 on 3 million shares.


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