KARACHI, Nov 5: The KSE 100-share index on Monday crashed from the recent highs by 635.80 points or 4.57 per cent at 13,279.24 on panic-selling by both the local and the foreign investors triggered by the imposition of emergency and rumours of major changes in the higher military hierarchy in the capital.
The rumours were denied well after the close of the market, however some analysts predict the market will be back on the rails by Tuesday sans political uncertainty on the strength of its positive fundamentals followed by strong short-covering at the terribly lower levels by the institutional investors, while foreign investors will remain conspicuous by their absence.
The previous highest single-session decline was 547.93 points or 5.88 per cent on June 24, 2006 on massive unloadings caused by reports of default of a stock exchange member. All the leading base shares faced lower-locks as sellers sought exit irrespective of financial losses.
Analysts believe the market has absorbed the negative fallout of the imposition of emergency after initial decline on the perception of continuity of financial and economic policies under the existing regime.
But the mid-session strong rumours of the president’s arrest by the top army generals caused a major confusion among the foreign investors without confirming it and followed by panic and nervous selling by all and sundry leading to market’s virtual crash but no matching buying from any quarter, he said.
“The market may not be as robust as it had been during the last about two years for quiet sometime as political turmoil could get further intensified in the coming months despite terribly encouraging fundamentals,” fears analyst Hasnain Asghar Ali.
But Faisal A. Rajabali thinks the market is capable of absorbing such shocks and is expected to be back on the rails during the next couple of sessions on the strength of positive news from the corporate front sans foreign investors.
The index’s all-time record single-session plunge eroded Rs187 billion from the market capital at Rs4,057bn would continue to haunt local investors as the exit of the foreign funds for an indefinite period could lead to fresh fall under the shadow of political uncertainty.
The KSE 30-share index on the other hand came in for massive battering and was quoted lower by 819.35 points at 16,054.44 as all the leading base shares suffered sharp fall.
Leading gainers were led by Sapphire Textiles, HinoPak, BOC Pakistan and Colgate Pakistan, up by Rs4.25 to Rs30.30.
Losers dominated the list of actives as share values fell like ninepins under the lead of Siemens Pakistan, JS & Co, MCB, Pakistan Resource Co, Fazal Textiles, National Refinery, PSO, Shell Pakistan, Attock Petroleum, Bata Pakistan, Nestle Pakistan, ICI Pakistan and several others, off by Rs10.95 to Rs28.75.
In the absence of buyers even at the falling prices, the volume figure did not expand significantly and totalled 248m shares as compared to previous 237m shares. Losers held a massive lead over the gainers at 316 to 48, with 14 shares holding on to the last levels.
OGDC led the list of actives, sharply lower by Rs6.05 at Rs115.70 on 21m shares followed by Pakistan Petroleum, off Rs12.55 at Rs239.30 on 15m shares, Lucky Cement, lower by Rs6.15 at Rs116.85 on 11m shares, MCB, sharply lower by Rs19.65 at Rs273.85 on 9m shares, Engro Chemicals, off Rs11.05 at Rs258.95 on 9m shares, Arif Habib Securities, lower by Rs8.25 at Rs156.85 on 8m shares and National Bank, off Rs11.95 also on 8m shares.
Other actives were led by TRG Pakistan, off Re1 on 15m shares followed by Callmate Telips, steady by 20 paisa on 8m shares and NIB Bank, lower by Rs1.05 also on 8m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of major losers on the cleared list, off Rs11.05 at Rs241.05 on 7m shares followed by OGDC, lower by Rs6.10 at Rs116.45 also on 7m shares and MCB, off Rs19.45 at Rs370.50 on 6m shares.
National Bank followed them, lower by Rs11.95 at Rs229.05 on 5m shares and Lucky Cement, easy by Rs5.85 at Rs117.90 also on 5m shares.
DEFAULTER COMAPNIES: Share values on this counter also fell sharply lower under the lead of Zeal Pak Cement, off 75 paisa at Rs4.65 on 3.969m shares followed by Japan Power, off 40 paisa at Rs7.70 on 3.194m shares and S.S. Oils, easy by Rs1.10 at Rs21.65 on 0.245m shares.
Norrie Textiles, Quice Foods, Unity Modaraba and InterAsia Leasing followed them and were quoted lower on light volumes.
DIVIDEND: Crescent Star Insurance, interim 25 per cent, plus right shares of the same amount.
KARACHI, Nov 5: The KSE 100-share index on Monday crashed from the recent highs by 635.80 points or 4.57 per cent at 13,279.24 on panic-selling by both the local and the foreign investors triggered by the imposition of emergency and rumours of major changes in the higher military hierarchy in the capital.
