Index plunges before slight recovery

Benchmark KSE-100 index drops 284.87 points.

KARACHI: The index fell short in hitting an all-time high of 30,000, expected to be crossed in the trading session, amid reports surrounding the arrest of Muttahida Qaumi Movement chief Altaf Hussain in London.

The index shed 780 points within 12 minutes in the afternoon but gained before the end of the session.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index plunged 0.96% or 284.87 points to end at 29,504.98.

“Investors that were gearing up for the evening budget and anxiously waiting for decision on Capital Gains Tax panicked on political unrest to test 29,000 followed by institutional buying that pushed the market to manage a respectable close above 29,500,” said Faisal Bilwani of Elixir Securities.

“Cements were outliers that held ground and led the volumes with Lucky Cement (LUCK PA +1.4%) and Fauji Cement (FCCL PA +.1%) gaining on reported foreigner buying in the former and pay-out excitement in the latter.

“We expect the market to remain sensitive to the budget with CGT to be the focus of capital market investors. Moreover, locals will also follow political developments with law and order keeping participants confused,” concluded Bilwani.

Trade volumes rose to 319 million shares compared with Monday’s tally of 270 million shares.

Shares of 385 companies were traded on Tuesday. The value of shares traded during the day was Rs13.9 billion. K-Electric Limited was the volume leader with 33.4 million shares, losing Rs0.07 to finish at Rs8.44. It was followed by Fauji Cement with 27.3 million shares, gaining Rs0.02 to close at Rs19.34 and The Bank of Punjab with 26 million shares, losing Rs0.52 to close at Rs8.88.

Foreign institutional investors were net buyers of Rs669 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 4^th, 2014.

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