Market Watch: Stock market nosedives on panic selling

KSE’s benchmark 100-share index plummets 341 points.


Express September 26, 2011

KARACHI:


The stock market took a nosedive on panic selling in the first few hours of the trading session as investor sentiments dropped on the back of heightened tensions with the US over the weekend and falling global markets.


The Karachi Stock Exchange’s (KSE) benchmark 100-share index plummeted 2.95 per cent or 341.83 points to end at 11,265.03 point level.

Almost all blue chips slipped in early trading followed by late recovery on reported local institutions buying, said Elixir Securities equity dealer Faisal Bilwani. The benchmark index lost more than 450 points in the starting two hours before a slight recovery.

The outgoing US chief military officer, Admiral Mike Mullen, has accused Pakistan’s intelligence agency of involvement in the September 13 attack on its embassy in Kabul and a September 11 attack on a NATO base in Afghanistan while terming it not capable to control militancy on its soil.

Pakistani analysts said the global sell-off on stock had also affected the local market, warning that investors might remain cautious for the rest of the week.

National Bank of Pakistan and DG Khan Cement closed at its lower limit of the day.

The oil sector remained under pressure as WTI oil price stayed below $80. Pakistan Oilfields lost Rs13.59 to close at Rs357.7 while Oil and Gas Development Company falls Rs4.49 to end at Rs128.6.

Rupee’s fall to a new low of Rs89.8 against the dollar reflected investor anxiety on current affairs, said Bilwani.

Foreign institutional investors were active as they were gross buyers of Rs300 million and gross sellers of Rs211  million worth of share during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

The market is expected to remain volatile as liquidity remains key concern for local players, said Bilwani. Trade volumes stayed in the same range as 79 million shares were traded.Fauji Fertiliser Bin Qasim was the volume leader with 8.45 million shares declining Rs1.52 to finish at Rs54.59. It was followed by Lotte Pakistan PTA with 8.13 million shares losing Rs0.71 to close at Rs11.52 and Fatima Fertiliser with 7.61 million shares falling Rs0.55 to close at Rs17.22.

Published in The Express Tribune, September 27th, 2011.

 

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