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Investors continue to liquidate long positions

KARACHI — The KSE 100-share index yesterday shed another 265.66 points as investors continued to liquidate long positions apparently fearing political deadlock and many did not like to ride the fresh wave of uncertainty.

“I don't say the late panic selling came from the foreign investors but some of them were said to be in the row shedding extra weight,” said a leading analyst quoting some institutional traders adding “the important thing was there were buyers at each dip.”

During the last three sessions, the index has fallen by about 500 points or 3.5 per cent under the pressure of technical correction but analysts are unclear whether or not it needs fresh pruning in the coming sessions, said a leading broker.

It finally finished with a fresh fall of about two per cent at 14,260.86 as compared to 14,526.52 a day earlier, reflecting the distinct weakness of the leading base shares, and eroding Rs77.00 billion from the market capital at Rs4,347.00.Its Junior partner was off 419 points at 17,106.00.

Leading oil and cement shares again received a massive battering as their current levels still ensure handsome capital gains. As a leading broker “put it there is no harm to cash in on the available margin of profits only to cover positions at the falling prices.”

The opening was, however, on the higher side as the index early hit the session's high of 14,619.00 on strong early support but the mid-session witnessed a spat of selling followed by conflicting reports about the political manuovring and fell to hit the lowest for the day at 14,198.00.

Although sell-off was fairly aggressives, some of the leading shares managed to finish with fresh gains, under the lead of JS & Co and Siemens Pakistan, up by Rs29.85 and 93.00, while Adamjee Insurance and National Refinery led the list of declining issues, off Rs20.25 and 20.50 respectively.

Trading volume was maintained at the overnight level of 361 million shares but losers forced a strong lead over the gainers at 240 to 133, with 24 shares holding on to the last levels.

Bank Al Falah came in for active short-covering on reports of higher earnings and topped the list of actives, up 2.50 at Rs61.70 on 25 million shares followed by Arif Habib Securities, off Rs8.85 at Rs172.70 on 23 million shares, OGDC, lower Rs2.60 at Rs123.50 also on 23 million shares, Bank of Punjab, easy by 40 paisa at Rs103.70 on 20 million shares, Fauji Fertiliser bin Qasim, lower by Rs2.40 at Rs46.20 on 15 million shares, DG Khan Cement, easy Rs5.50 at Rs105.45 on 13 million shares and Lucky Cement, off Rs6.65 at Rs127.05 on 12 million shares.