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Stocks resist larger decline amid active trading

KARACHI - Pakistani stocks yesterday resisted larger fall followed by central bank steps to arrest further decline in the value of the Pakistani rupee, which had depreciated by 9.4 per cent against the US dollar during the last couple of sessions on panic buying. The KSE index curtailed its daily erosion to only 16.77 points at 11,796.47.

“The rupee recovered well over three per cent just in a session and was quoted at Rs.71.20 and 71.70 for buying and selling in the kerb after having touched all-time peak level of Rs.73.80 and 74.00 at one stage”,analyst Hasnain Asghar Ali said.

An other aiding factor was SECP-KSE highups meeting on Friday(July 11),to have an overview of the corrective steps(lower and upper circuit breakers) taken late last month and possibly to review them in the light

Of their impact on the market.

“Investors showed keen interest in the proposal to setting up of Rs50 billion market stabilisation fund as it could impart strength to a falling market”, another analyst Ahsan Mehanti said.

He said although news from the political front are not that encouraging,any positive decision in the SECP meeting could also prop up the badly mauled market sentiment in the next week.

“The massive fall in the leading shares during the last couple of weeks could initiate strong rally as investors may not like to miss an attractive bait of handsome capital gains at the current levels”, analyst Ashraf Zakria said.

An early modest rally of 32 points in the index,which rose to 11,845.09 at one stage reflects that there is a growing realisation among the big ones to be back in the market after having liquidated long positions in the dollar and the gold,which has hit all-time highs during the week. Leading gainers were led by Packages and Unilever Pakistan,up by Rs.11.47 and 21.50,while JS & Co and Attock Petroleum were prominent among the losers,off by Rs.4.98 and 4.19 respectively.

Leading oil and banking shares OGDC, Pakistan Oilfields, PSO, Bank AlFalah, and some others were traded on the higher side amid active trading.

Turnover figure showed a fresh rise at 53 million shares from the previous 21 million shares as losers maintained their lead over the gainers at 159 to 52,with 16 shares holding on to the last levels.

OGDC led the list of actives,steady by 17 paisa at Rs118.50 on 7 million shares,followed by MCB, off Rs3.10 at Rs307.31 on 4 million shares, Hub-Power, firm by 44 paisa at Rs27.39 on 3 million shares, PTCL, up 36 paisa at Rs36.77 on 3 million shares, PSO, higher by Rs6.80 at Rs414.60 on 3 million shares, Pakistan Petroleum, off Rs2.31 at Rs229.33 also on 3 million shares and Bank AlFalah, up 93 paisa at Rs40 on 3 million shares.