Quarterly review: Steepest fall in 11 quarters

KARACHI:

The Karachi Stock Exchange’s benchmark 100-share index lost 5.9% in value during the third quarter of 2011, its sharpest fall since the price floor was removed in the third quarter of 2008.

The gloom at the bourse for the most part was owing to S&P downgrade of US debt rating fuelling speculation of another recession, strained Pak-US relationship, deteriorating law and order situation in Karachi and subsequent tension on the political front, according to a JS Global Capital research note.

Average daily volumes fell to their lowest in 40 quarters to 59 million shares while foreigners were net sellers of $46 million worth of shares.

Nevertheless, the index did manage to outperform its regional peers by an average 7% due to impressive corporate result announcements and lower-than-anticipated inflation numbers.

Published in The Express Tribune, October 4^th, 2011.