Market watch: Stock market nosedives to 10-month low

KSE-100 benchmark index loses 249 points.

Express August 19, 2011


The stock market took a nosedive and fell more than 200 points in the opening 20 minutes on Friday due to a plunge in global markets and the ongoing violence in the city.

The KSE-100 benchmark index lost 249 points or 2.23% to end the day at a 10-month low of 10,879.82 points.

Tumbling regional and international bourses and deteriorating law and order situation kept the local bourse under extreme pressure, said Aziz Fidahusein and Company analyst Hasnain Asghar Ali.

Eleven people were gunned down in various parts of Karachi on Friday, raising the death toll of the recent spate of violence to 42.

Various stances of low volume price erosion due to curtailed local strength and absence of buyers and weakening rupee against dollar forced the benchmark to fall below the 11,000 mark to a ten month low, he added.

Local banking stocks witnessed sell off with National Bank of Pakistan plunging 5% in initial trade amid whisper of foreign institutional investors selling their shares, said Elixir Securities equity dealer Sibtain Mustafa.

Foreign institutional investors were net sellers for the fifth straight day with Rs151.7 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited.

Engro Corporation continued its slide despite trading highly oversold as investors continue to look for an exit, owing to its continued gas disruption.

Energy stocks failed to give any support despite expectations of decent payout and higher earnings while volumes remain an issue as market lacks confidence owing to domestic liquidity constraints, added Mustafa.

Trade volumes continued to remain at a dismal level of 41 million shares. The total value of trade on Friday was worth Rs1.78 billion.

Lotte Pakistan PTA was the volume leader with 3.73 million shares losing Rs0.41 to finish at Rs10.72. It was followed by Fatima Fertilizer with 2.89 million shares with a loss of Rs0.28 to close at Rs15.95 and Jahangir Siddiqui Company with 2.43 million shares decreasing by Rs0.23 to close at Rs5.41.

Published in The Express Tribune, August 20th, 2011.