Market watch: Index takes a 1,000-point beating

Benchmark 100-share index loses 1023.94 points.

KARACHI: In what has become a not-so-rare feature, the index took a beating and shed over 1,000 points on Monday — little over a month after it plunged in a similar manner at the end of March.

The fall comes on the back of rumours suggesting an investigation over brokers’ activity. Pre-budget caution did not help the cause either as investors awaited clarity.

At close on Monday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index lost 3.05% or 1,023.94 points to end at 32,506.36.



Elixir Securities analyst Faisal Bilwani said Pakistan equities witnessed a sharp decline. “Equities opened negative and continued to slide on reports and anxiety over broker investigations,” said Bilwani. “Panic started mid-day as sellers struggled to find any decent bid on system.

“On the political front, however, the courts entertained PML-N’s plea and stayed a recent decision by the election tribunal on re-election of a seat held by a key federal minister.”

Meanwhile, Topline Securities analyst reiterated that the market slump was due to rumours over brokers being investigated.

“Almost 30 stocks fell 5% to reach their lower limit, including Lucky Cement (LUCK), Maple Leaf Cement Factory (MLCF), Engro Corp. (ENGRO), Engro Foods (EFOODS), Pakistan Tobacco Company (PTC) and Pak Elektron Limited (PAEL).



“The Supreme Court’s decision did help the market temporarily before the index started shedding points again.”

Trade volumes rose to 235 million shares compared to 189 million on Friday.

Shares of 347 companies were traded on Monday. Of these, 33 companies closed higher, 300 saw a decline and 14 remained unchanged. The value of shares traded during the day was Rs12.3 billion.

K-Electric Limited was the volume leader with 22.9 million shares, losing Rs0.46 to close at Rs7.15. It was followed by Byco Petroleum with 21.9 million shares, losing Rs0.85 to close at Rs12.65 and Pak Electron Limited with 16.8 million shares, losing Rs3.06 to close at Rs58.14.

Foreign institutional investors were net sellers of Rs25 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, May 12^th, 2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.