Market watch: A not-so-sweet aftertaste as market dips

Benchmark KSE-100 index drops 666.24 points.

KARACHI:

The market opened after a long holiday on a disastrous note, going below the coveted 30,000-point barrier.

At close, the KSE benchmark 100-share index fell 2.20% or 666.24 points to end at 29,647.83.

“Pakistan equities witnessed a bloodbath with benchmark KSE-100 losing more than 880 points at one point before paring some of those losses to settle 650 points below,” said Elixir Securities Analyst Faisal Bilwani.  “This was the kind of dip last seen in 2007 a day after former prime minister Benazir Bhutto was assassinated.

“Stocks opened gap down and fell without any support in absence of buyers on political noise as country’s second largest opposition party, led by Imran Khan, ups the ante on planned march on capital on Independence Day calling for electoral reforms.



“Investors are understandably anxious fearing confrontation between political parties,” said Bilwani. “However, they remain hopeful that the slightest hint of positive news flow will push the market to recover most of the losses as fundamentals remain strong and inflows from foreigners continue.”

United Banks UBL +1.8% was an outlier to trade against broader market direction on reported foreigners buying while small cap cements led volumes, added Bilwani

“Foreigners’ activity is another key factor that will guide direction in days ahead.”

Trade volumes increased to 181 million shares compared with last Monday’s tally of 103 million.



Shares of 338 companies were traded on Monday. At the end of the day, 38 stocks closed higher, 287 declined while 13 remained unchanged. The value of shares traded during the day was Rs8.4 billion.

Lafarge Pakistan was the volume leader with 43.8 million shares, losing Rs0.47 to finish at Rs15.47. It was followed by Fauji Cement with 12.4 million shares, losing Rs0.61 to close at Rs20.22 and Lotte Chemical with 12 million shares, gained Rs0.10 to close at Rs7.94.

Published in The Express Tribune, August 5^th, 2014.

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