KARACHI, July 16: The KSE 100-share index on Monday plunged by two per cent on panic-selling triggered by reports of suicide attacks on security forces during the last two days which claimed dozens of lives.
The index shed 257.20 points at 13,945.03 points slightly above the session’s low of 13,871.08 as compared to previous 14,202.23 points eroding Rs86 billion from the market capital at Rs4,117bn.
The free float 30-share index also received massive battering and was marked down by 350 points or 2.04 per cent at 16,812.56 points.
All the leading base shares fell in unison under the lead of OGDC, Bank of Punjab, MCB, National Bank and some others and so did second-liners.
There was confusion when the trading resumed in the backdrop of reports of attacks on security forces in the NWFP tribal areas as investors could no precisely decide how to react to deteriorating law and order situation after the Lal Masjid operation.
“What worried investors was fear of spreading of suicidal attacks to other parts of the country as that could take the market back to any lows just in one go,” analyst Ahsan Mehanti says.
Highly sensitive to negative developments on the law and order front, the share market cannot hold on to its ground amid panic-selling from all the quarters. The market withstood the shock of Lal Masjid operation but attacks on security forces have shattered the confidence of investors particularly foreign ones, some others said.
Analyst Ashraf Zakaria feels that the market has the ability and inherent strength to rebound if the sanity on the law and order front returns.
However, the market was expected to be back on the rails even tomorrow if there were no fresh attacks on the personnel of the law enforcing agencies.
Meanwhile, the KSE has announced that the client-level and member-level position limits increased by the SECP to five and 10 per cent of the free-float respectively on the futures market have become effective from Monday (July 16).
Treet Corporation and Siemens Pakistan managed to finish with gains of Rs16 and Rs20, followed by IGI Insurance, Attock Refinery, Mari Gas, HinoPak, Sitara Chemicals, Engro Chemical and Bata Pakistan, which rose by Rs6 to Rs14.95.
Rafhan Maize and Nestle Pakistan fell by Rs50 and Rs38 respectively. Other prominent losers included Sanofi-Aventis, Colgate Pakistan, AKD Capital, Millat Tractors, Pakistan Engineering, Pakistan Resource Insurance, New Jubilee Insurance, Adamjee Insurance, MCB, Arif Habib Ltd, Javed Omer and JS & Co, which suffered fall ranging from Rs9 to Rs34.30.
Trading volume fell to 322m shares from the previous over half a billion as leading investors held on to their positions and did not indulge in hasty-selling. But losers forced a strong lead over the gainers at 302 to 74, with 26 shares holding on to the last levels.
Fauji Fertiliser Bin Qasim on reports of foreign interest was quoted higher by 90 paisa at Rs46.10 on 36m shares followed by OGDC, lower by Rs1.25 at Rs123.10 on 27m shares, TRG Pakistan, off 90 paisa at Rs15.75 on 17m shares and WorldCall Telecom, lower by 90 paisa at Rs19.40 on 14m shares.
Dewan Salman, easy 20 paisa at Rs12.05 on 14m shares, Bosicor Pakistan, off Rs1.05 at Rs20.65 13m shares and Engro Chemical Pakistan, higher by Rs6.20 at Rs269.75 on 11m shares.
Other actives were led by Telecard, easy by 45 paisa on 9m shares, Sui Southern Gas, lower 60 paisa on 8m shares and Pak PTA, off 55 paisa on 7m shares.
FORWARD COUNTER: Fauji Fertiliser Bin Qasim also led the list of actives on the cleared list and was quoted higher by Rs60 paisa at Rs46 on 15m shares followed by OGDC, lower by Rs1.20 at Rs123.45 on 6m shares and Engro Chemical, higher by Rs6.91 on 5m shares.
Lucky Cement followed them, sharply lower by Rs4.10 at Rs126.95 on 5m shares and Bank of Punjab, off Rs3.90 at Rs101.10 also on 5m shares.
DEFAULTER COS: Trading on this counter also remained slow and prices mostly fell where changed on active profit-selling. Japan Power fell by 60 paisa at Rs9.20 on 2.011m shares followed by Unity Modaraba, easy by five paisa at Rs0.80 on 0.924m shares and Nimir Chemicals lower 40 paisa at Rs4.75 on 0.874m shares.
Other actives were led by Zeal-Pak Cement, easy by 35 paisa at Rs6 on 0.435m shares, Crescent Standard Modaraba, lower 25 paisa at Rs2.65 on 0.225m shares and Norrie Textiles, easy by 10 paisa at Rs2.55 on 0.156m shares.
BONUS SHARES: United Money Market Fund, 10.08 per cent, United Growth and Income Fund 11.37 per cent and United Stock Exchange Fund 20.76 per cent.
