Benchmark
KSE-100 index
drops 506.25 points.
KARACHI: The stock market tumbled to levels below 34,000 points on the last trading day of the week as investigations into broker affairs sparked selling and investors tracked movements on regional markets.
At close on Friday, the Karachi Stock Exchange (KSE) benchmark 100-share index recorded a fall of 1.47% or 506.25 points to end at 33,891.08.
According to Elixir Securities analyst Faisal Bilwani, turnover on the benchmark KSE-100 index was the lowest in nine weeks as market participants hunted for triggers, while rumours of investigations into broker affairs over delay in segregation of clients’ accounts also led to the slide.
“Stocks opened sideways and traded dull in early trade while sharp dips in the (later) session tested nerves with across-the-board selling as KSE-100 moved nearly 1,000 points on the day.”
“Global markets and commodities are expected to guide direction early next week while rumours or update over the weekend on broker investigations will also have an impact on sentiment,” noted Bilwani.
Meanwhile, JS Global analyst Saeed Ahmad Khan was of the view that market sentiment took a hit as news emerged about the regulators being active and serving notices demanding an explanation from various capital market participants.
“On the back of lower-than-expected local cement dispatches, the sector remained under pressure. Biggest losers were Maple Leaf Cement Factory (-4.07%) and Dera Ghazi Khan Cement (-4.48%).”
“Positivity initially prevailed in the fertiliser sector as Engro Fertilizers officially announced an increase in urea prices of Rs159 per bag.” “Moving forward, we expect volatility to continue next week. We advise caution.”
Trade volumes fell to 231 million shares compared with Thursday’s tally of 260 million shares.
Shares of 384 companies were traded. At the end of the day, 70 stocks closed higher, 294 declined while 20 remained unchanged. The value of shares traded during the day was Rs9.5 billion.
Dewan Cement was the volume leader with 21.7 million shares, losing Rs0.21 to finish at Rs17.88. It was followed by TRG Pakistan Limited with 13.3 million shares, losing Rs0.93 to close at Rs37.36 and Pace Pakistan Limited with 10.2 million shares, losing Rs0.20 to close at Rs7.31.
Foreign institutional investors were net sellers of Rs57 million worth of shares during the trade session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 5th, 2015.
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