Benchmark
KSE-100 index
closes at 34,519.77.
KARACHI: The week ended on a sour note for the Karachi Stock Exchange (KSE) as the benchmark-100 tumbled 700 points on Friday.
Led by regional activity and declining prices of global crude, panic investors took the index down almost 1,000 points intra-day before some relief occurred in the second half. At one point, the KSE-100 touched 34,275 points.
However, at close on Friday, the index lost 699.8 points or 1.99% to end at 34,519.77.
Elixir Securities Analyst Faisal Bilwani said Pakistan equities tumbled as stocks rout in the region led to panic with benchmark breaching key support at 35,000.
“Mood that was already sour from foreign selling in the last few sessions darkened further as regional markets along with commodities tested new lows with KSE-100 index dipping near 1000 points intraday,” said Bilwani. “Reports of foreign selling and institutions struggling to find buyers led to panic selling while retail investors were also taken for a ride as volatility and sharp dips tested nerves.
“Understandably, value buyers at lows were not so aggressive, however, late buying did help market close with trimmed losses.”
Bilwani said next week was crucial. “Day’s trade data will be crucial to setting the tone early next week as a large outflow from foreigners would dent already bruised confidence. Moreover, investors will closely track regional markets and are expected to cherry pick value plays on further weakness.”
Meanwhile, IGI Securities Team Lead Retail South Muhammad Ali Taufiq also echoed the same view. “Stocks in all regional markets went down in line with a major drop in US equities. Pakistan was no exception,” said Taufiq.
Arif Habib Corporation’s Ahsan Mehanti said China’s financial turmoil played a catalyst role in bearish activity. “It ignored upbeat current account data for July and record earnings announcements in the banking sector.”
JS Global Analyst Saeed Ahmed Khan reiterated, “Negativity can be attributed to consecutive foreign selling this entire week amid global dip in equity markets across the board.
“All sectors remained depressed where top performers today were EFU Life Assurance (+4.6%) and Attock Petroleum Limited (+1.5%),” Khan noted.
Trade volumes rose to 314.5 million shares compared with Thursday’s tally of 281.7 million shares.
Shares of 378 companies were traded on Friday. At the end of the day, 58 stocks closed higher, 302 declined while 18 remained unchanged. The value of shares traded during the day was Rs13.9 billion.
K-Electric Limited was the volume leader with 37.99 million shares, losing Rs0.25 to finish at Rs7.91. It was followed by Jahangir Siddiqui and Company Limited with 14.6 million shares, losing Rs1.34 to close at Rs25.65 and Dewan Cement with 112.3 million shares, losing Rs0.46 to close at Rs14.69.
Foreign institutional investors were net sellers of Rs588.5 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 22nd, 2015.
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