Stocks continue to fall

KARACHI: The stock market continued its downward trend for the third consecutive day this week. News of postponement of the meeting between the Karachi Stock Exchange (KSE) and the Federal Board of Revenue (FBR) on the margin trading issue coupled with increased fear of damages caused by the floods kept spirits low.

The KSE’s benchmark 100-share index fell by 83.36 points on Wednesday to close at 9,553.81.

“Fear of increasing flood loss estimates and cancellation of KSE’s board meeting to discuss the margin trading system further dampened the already weak sentiment,” wrote Muzammil Mussani from JS Global Capital.

Only 46 million shares were traded during the day. The trade volume, however, was almost 16 per cent higher than the turnover recorded on Tuesday.

Market chatter of local institutions offloading their holdings added to sluggishness as participants seem to have lost confidence, according to Sara Shahid from Elixir Securities.

“Global stock market meltdown augmented panic selling in the local bourse,” added Samar Iqbal, a local equity dealer.

Shares of 367 companies were traded on Wednesday. At the end of the day, 117 stocks closed higher while 228 declined and 22 remained unchanged. The value of the shares traded during the day was approximately Rs1.49 billion.

With 7.18 million shares traded, Amtex Limited was the market leader for the day. The company announced a cash dividend of Rs3 per share, or 30 per cent, on Wednesday. The scrip gained Rs0.12 to close at Rs19.33 per share.

Lotte Pakistan PTA followed with a trade volume of 4.85 million shares. The stock lost 4.7 per cent to close at Rs7.52 per share. Even though the company’s board met on Wednesday, financial results for the first half of this year will be communicated to the KSE on Thursday.

JS and Company emerged as the third market leader with 2.18 million shares traded during the day. The scrip closed at Rs10.01 per share after shedding Rs0.37 or approximately 3.5 per cent.

Published in The Express Tribune, August 26^th, 2010.