KARACHI, May 9: The downward drift on the stock market continued on Friday as investors again liquidated their long positions on the overvalued counters owing to the prevailing turmoil on the currency markets and the weakness of the rupee. The KSE 100-share index was off 160 points at 14,228.67.

The massive erosion in the value of the rupee against the dollar during the current week has sent distress signals among the stock traders amid fears that its negative impact could also cause a major jolt to the share business as both are co-related in more than one ways, said a floor broker.

The market closed the weekend session on an easy note as investors continued to unload long positions on the overvalued sectors but instances of selective buying at the dips were not lacking.

The KSE 100-share index suffered a fresh sharp fall of 159.85 points or 1.11 per cent at 14,228.67, breaching through two consecutive barriers as compared to 14,388.52 a day earlier as leading base shares fell further on renewed selling. The 30-share index was off 1.67 per cent or 283.93 points at 16,768.16 points.

The run on the dollar dealt a fresh serious blow to the already under pressure rupee, which was late in the evening quoted around Rs68 or above on the open market, analysts said.“Investors sold stocks where there were still some margins to avert further erosions in the value of their holdings and sat on the sidelines watching the slide of the rupee,” they said, adding, “But the offices of private currency dealers were closed as there was no dollar to be sold”.

The massive weakness of the rupee (about nine per cent) during the last couple of weeks caused by inflated oil import bill, which hit a record level of $124 per barrel, has its bearing on the already massively mauled stock market as was reflected by falling prices.

“Over the week, since the rupee maintained its downward drift, the KSE 100-share index has lost about 700 points, the total during the last two consecutive weeks amounting to about 14,228.67 points or 10 per cent, eroding Rs185 billion from the market capital,” said a leading broker.

Apart from the weakness of the rupee, some political depressants notably reinstatement of judges, budget uncertainties and the absence of foreign investors also dampened the underlying sentiment.

Minus signs again dominated the list under the lead of EFU General and Attock Petroleum, off by Rs20 and Rs15.95, respectively, followed by MCB Bank, JS & Co, Adamjee Insurance, Central Insurance, EFU General, Attock Petroleum, Millat Tractors, Engro Chemical, Packages, and Grays of Cambridge, which suffered fall ranging from Rs10.60 to Rs15.95.

But on the other hand Fazal Textiles and Pakistan Services managed to finish higher by Rs24.31 and Rs20, respectively, on stray support. Other prominent gainers were led by Arif Habib Securities, Javedan Cement, KSB Pumps, Indus Motors, Colgate Pakistan, Wyeth Pakistan, Sapphire Fibres, Atlas Battery, and EFU Life rose by Rs5.15 to Rs19.25.

Trading volume fell to 181m shares from the previous 199m shares as losers held a strong lead over the gainers at 197 to 99, with 25 shares holding on to the last levels.Arif Habib led the list of actives, higher by Rs6.57 at Rs185.70 on 17m shares followed by OGDC, off Rs2.20 at Rs130.40 on 13m shares, D.G. Khan Cement, easy by Rs1.21 at Rs92.79 on 10m shares, Lucky Cement, up by Rs1.11 at Rs126.51 on 8m shares, Nishat Mills, off Rs1.23 at Rs108.50 on 7m shares, Engro Chemical, sharply lower by Rs10.60 at Rs320 on 6m shares, Pakistan Oilfields, off Rs3 at Rs415 on 6m shares.

MCB Bank followed them, off Rs10.65 at Rs355 on 6m shares but on the other hand National Bank, rose by Rs1.80 at Rs216.75 on 5m shares and Attock Refinery, which was also marked down by Rs6.85 at Rs285.25 on 6m shares.

FORWARD COUNTER: MCB Bank remained under pressure and suffered a fresh fall of Rs11.05 at Rs358.50 on 8m shares followed by D.G. Khan Cement, easy by Rs1.79 at Rs93.10 on 5m shares and Nishat Mills, off Rs2.05 at Rs109.10 also on 5m shares.