The Karachi Stock Exchange’s 100-share index has twice seen a correction of over 1,000 points in the month of August. PHOTO: FILE
KARACHI:
The stock market remained volatile amidst uncertainty about the country’s monetary policy, and news of an impending attack on Syria leading to a rush on oil and gold stocks, as stocks flirted with an intra-day low of 21,929 point during the day.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.28% or 287.38 points to end at 22,236.33 points.
International markets tanked yesterday as the United States Secretary of Defense Chuck Hagel came out with aggressive statements against the Syrian regime, leading to widespread speculation about an imminent military intervention.
“Profit taking was seen across the board where EFOODS closed down by 5% at its lower lock. However, the index witnessed recovery where buying interest was seen in blue chip stocks. The market panicked on statements given by the US Government regarding attacks on Syria. Capital markets across the board saw a major downtrend amid the Syria situation, where commodities including oil and gold rose.” Said Fahad Ali of JSGlobal.
“Pakistan equities finished a volatile session lower with index testing nerves down -2.6% below 22,000 intraday but managed a close with some recovery on buying near close.” Said Faisal Bilwani of Elixir Research. “Rumours of a broker default did not help already shaken confidence as regional markets continued downward spiral however reports of foreigner’s buying in index names and institutional value buying pushed KSE100 to close above 22,200.”
Trade volumes were at 265 million shares compared with Tuesday’s tally of 188 million shares.
Shares of 342 companies were traded on Wednesday. At the end of the day 59 stocks closed higher, 257 declined while 26 remained unchanged. The value of shares traded during the day was Rs9.7 billion.
Bank of Punjab was the volume leader with 38 million shares losing Rs0.5 to finish at Rs11.99. It was followed by Fauji Cement with 26 million shares losing Rs0.19to close at Rs14.10 and Jahangir Siddiqui and Company with 12 million shares losing Rs0.47 to close at Rs10.76.
Foreign institutional investors were net sellers of Rs43 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 29th, 2013.
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