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KARACHI: Selling intensified on the stock market on Wednesday as too many factors proved to be sentiment dampeners. The KSE-100 index plunged 554 points (1.1 per cent) as a result to close at 49,214 points.
A trader said that leveraged investors started sell-off due to a reduction in the number of margin-eligible securities acceptable as collateral. Deteriorating law and order and the resumption of hearing in the Panama Papers case kept investors on their toes.
The volume of shares traded during the day increased 18.1pc to 417 million and the trading value rose 1.1pc to Rs17.4 billion. Sideboard stocks led the volume, with 39 shares closing on their upper circuits and 38 scrips on their lower limits.
Analysts at JS Global said the market opened on a positive note and the index made intraday gains of 154 points before heavy selling pulled down the index deep into the red.
The banking sector led the decline as index heavyweights lost values; Habib Bank (HBL) fell 1.37pc, MCB Bank 1.13pc and United Bank 0.89pc.
Al Shaheer Corporation rose 5pc and Fauji Fertiliser Bin Qasim (FFBL) 4.28pc on the back of news that the United Arab Emirates has lifted an eight-year moratorium on poultry imports from Pakistan.
Fauji Cement announced its earnings dropped by 59pc year-on-year to Rs0.5 per share in December and by 55pc to Rs0.94 per share in the July-December period.
The downside pressure on the market came mostly from HBL which fell 1.37pc, International Steels 5pc, Millat Tractors 4.87pc, Lucky Cement 1.04pc and MCB 1.13pc, taking away 142 points in aggregate, analysts at Intermarket Securities said.
The major gainers included FFBL which rose 4.28pc, IGI Insurance 5pc and Service Industries Ltd 4.64pc, adding 35 points.
Published in Dawn, February 16th, 2017
