KARACHI: The Karachi Stock Exchange's 100-share index on Thursday suffered a major fall of 93 points or 2 per cent at 5,371.20 from 5,464.14 recorded a day earlier as reports of attack on the motorcade of the Karachi Corps Commander triggered panic-selling.
The total market capitalization also fell sharply by Rs24.332 billion at Rs1,443.522 billion compared to Rs1,467.854 billion owing to steep decline in the share values of massively-capitalized shares, including OGDC and PTCL.
KSE 100-share index suffers fall of 93 points
KARACHI, June 10: The KSE 100-share index on Thursday plunged 93 points or 2.00 per cent on near-panic selling on all the counters followed by reports of a terrorist attack on the motorcade of the Karachi Corps Commander and killing of a number of persons.
There was confusion all-around as everyone was making an abortive effort to get out of the market as conflicting rumours kept pouring in till the closing bell, not allowing investors to ascertain "what actually happened and the death toll".
The KSE 100-share index, which was shaping to hit its new target of 5,500 fell by 92.94 points, breaching through the psychological barrier of 5,400-point and ended around 5,371.20 as all the leading base shares suffered losses.
The total market capital also suffered a sharp decline of Rs24.332bn at Rs1,443.522bn as compared to Rs1,467.854bn owing to steep decline in the share values of massively-capitalized shares including OGDC and PTCL.
Sharp fall in OGDC and PTCL, the two heavy weights of the index remained under pressure throughout the session and took it along with them in the danger zone. However, the market could recover from the current low as pre-budget speculative buying on selected counters could push it above the lows, some brokers predict.
"It was a terribly bad opening as the trading resumed in the shadow of bomb blast in an area known for typical peace", they said while commenting on the market's steep decline. "What sent shock waves among the investors was initial rumours that some army personnel were the target".
The speculated pre-budget rally was, therefore, decisively halted as perceptions of peace in the city despite the election of the new chief minister appears to be an elusive goal.
"The attack appears to have changed all the previous perceptions about the terrorist attacks", one broker said "now it has changed into high-profile target killings". Many investors and institutional traders have been expecting a promising opening in the backdrop of meeting of the chiefs of the three bourses with the prime minister to seek his help in extending the tax exemption on capital gains. But the bomb blast and reports of casualties overshadowed its positive side.
Some analysts said the market was in an overbought position and needed correction and the bomb blast was made an excuse to liquidate long positions on some of the counters.
All the leading shares came in for active profit-selling as leading investors tried to shed their extra weight ahead of the budget but bulk of the selling was well-absorbed at the dips.
Cement shares suffered fresh pruning as the prospects of export to Dubai receded followed by reports that prices there had declined by 50 per cent. Minus signs dominated the list, major losers being Shell Pakistan, Gatron Industries, Lakson Tobacco and Javed Omer, which fell by Rs7 to Rs33.
Other prominent losers were Fauji Fertilizer, Atlas Honda, Shahtaj Sugar, EFU Life Insurance and Fazal Textiles, off Rs3.90 to Rs5. Javed Omer whose directors announced an interim dividend of Rs25 per share or 250 per cent came in for post-dividend selling and fell by Rs33 on 0.104m shares.
Some of the leading shares managed to finish modestly higher on stray support and posted gains ranging from Rs2 to Rs3.90 for Liberty Mills, National Refinery, Din Textiles and Pakistan Resource Insurance.
The largest gains were, however, recorded by Rafhan Maize and Treet Corporation, up by Rs10 and Rs21 respectively. Trading volume fell further to 409m shares from the previous 428m shares as losers forced a strong lead over the gainers at 254 to 94, with 34 shares holding on to the last levels.
The active list was topped by D.G.Khan Cement, off Rs1.45 at Rs60.15 on 35m shares followed by Fauji Cement, easy 65 paisa at Rs18.35 on 34m shares, OGDC, off Rs1.45 at Rs65.35 on 33m shares, PTCL, lower 50 paisa at Rs42.05 on 29m shares and KESC, up by 20 paisa at Rs8.40 on 23m shares.
Other actives were led by National Bank, off Rs1.80 on 21m shares, F.F.Bin Qasim, lower 60 paisa on 17m shares, PIAC, off Re1 also on 17m shares, Sui Southern Gas, lower 75 paisa on 16m shares and Pak PTA, easy 35 paisa also on 16m shares.
FORWARD COUNTER: All the shares on the cleared list also fell, major losers among them being ICI Pakistan, PSO, and Fauji Fertilizer, which suffered fall ranging from Rs1.45 to Rs3.25 on light volumes. But on the other hand, Bank Alfalah came in for active support and rose by 90 paisa at Rs62.15 on 8m shares followed by PTCL, easy by 45 paisa at Rs42.20 on 7m shares, Pak PTA, easy 40 paisa at Rs18.50 on 4m shares and Hub-Power, off 60 paisa at Rs32.65 also on 4m shares.
DEFAULTER COS: Asset Investment Bank and Standard Investment Bank came in for strong support and rose by five paisa each at Rs7.55 and Rs10.65 on 1.446m and 1.103m shares respectively. Biafo Industries was marked down by Re1 at Rs16.45 on 0.497m shares.
DIVIDEND: Javed Omer Vohra, cash interim at the rate of 250 per cent or Rs25 per share. Book closures from July 2 to 8.
