Ahead of the Independence Day long march planned by PTI and PAT, investors continued to remain cautious as the market experienced another plummet after Monday’s 666-point decline.
At close, the Karachi Stock Exchange benchmark 100-share index fell 0.99% or 293.44 points to end at 29,382.97.
JS Global Analyst Fahad Ali said that with global markets also declining, equity markets in general are facing pressure with low volumes.
“UBL announced a second interim cash dividend for the year 2014 of Rs2.50 per share (25%), however, it closed at Rs187.94 down by 4.5% as investors opted to book profits,” he said.
“Cement sector again continued its journey southwards with Cherat Cement (-4.2%) again leading the decline to reach its lower circuit yet again in the middle of the day.
The analyst said the market is expected to remain under pressure until the government and the protesting political parties reach some sort of a middle ground, stabilising the situation.
Arif Habib Corporation analyst Ahsan Mehanti stated that concerns for rising circular debt in the energy sector, deteriorating geo-political situation, and dismal fertiliser sales for July 2014 played a major role in bearish activity despite earning announcements in the oil and banking sectors.
Trade volumes decreased to 97.4 million shares compared with Tuesday’s tally of 132 million.
Shares of 315 companies were traded on Wednesday. At the end of the day, 64 stocks closed higher, 230 declined while 21 remained unchanged. The value of shares traded during the day was Rs4.6 billion.
Lafarge Pakistan Cement was the volume leader with 10.1 million shares, losing Rs0.01 to finish at Rs15.52. It was followed by Fauji Cement with 4.46 million shares, losing Rs0.20 to close at Rs19.99 and TRG Pakistan with 3.9 million shares, losing Rs1.00 to close at Rs11.70.
Published in The Express Tribune, August 7th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.