KARACHI, Aug 6: The KSE 100-share index on Wednesday failed to extend the overnight rally and again fell below the base level of 10,000 points on renewed selling triggered by reports that the Pakistan People’s Party and Pakistan Muslim League-N have agreed to impeach President Pervez Musharraf.
It finally finished off 363.65 points or 3.62 per cent at 9,678.82 as compared to 10,042.42 a day earlier as leading base shares remained under pressure on sell stops from all the quarters but matching offers even an attractive level. The KSE 30-share index fell by 487.11 points at 10,786.01 points.
The other destabilisation factor was Taliban’s threat to the Muttahida Qaumi Movement to stop their activities in the city and wind up its organisational set-up, intensifying the political uncertainty amid fears of bloodshed, analysts said.
“The bourse seems to have contributed its share in the form of four per cent decline in the index and erosion of Rs110 billion in the market capital before the city is ‘Talbanised’ beyond the current warning,” said a broker jokingly, adding: “But how would the MQM react as the warning could well mean to a threat to its power base”.
Most of leading shares in the oil and banking sectors, which still ensure capital gains being overvalued, were the centre of activity as the investors tried to sell their stakes in them to get out of the market.
What seems to have triggered sell stops from all and sundry in the absence of an active support even from the funds, which propelled the market a day earlier, was the plan to impeach the president still armed with the power of 58(2)b, under which he could dissolve the assemblies.
Already, there is a loud whispering in the media that he intends to use this power well before his impeachment, some analysts said, adding: “The Pandora’s Box has been opened, which can lead the market to any lows in the coming weeks”.
“The market is now heading for a fresh massive fall and it appears pretty difficult to salvage it from a continued crash as no one will like to invest in shares in the developing situation,” they added.
Minus signs held a strong lead over the gainers under the lead of Nestle Pakistan and PSO, which fell by Rs70 and Rs17.40, followed by EFU Life, EFU General, MCB Bank, Sapphire Fibres, National Refinery, Pakistan Oilfields, Millat Tractors, Dawood Hercules, Sitara Chemicals, JS & Co and several others falling by Rs10 to Rs15.77.
But on the other hand some inactive shares rose by Rs78 and Rs11.45 under the lead of Wyeth Pakistan and Al-Ghazi Tractors. Others fell fractionally.
Trading volume fell to 78m shares from the previous 144m shares in the absence of buyers as losers held a strong lead over the gainers at 215 to 39, with 18 shares holding on to the last levels.
NIB Bank again led the list of actives, lower by 52 paisa at Rs8.88 on 7m shares, Pakistan Petroleum, off Rs2.03 at Rs202.20 on 6m shares, despite announcement of 25 per cent bonus shares, National Bank, lower by 5.49 at Rs104.41 on 5m shares, OGDC, easy by Rs4.20 at Rs105.25 on 4m shares, Arif Habib Securities, off Rs6.15 at Rs116.85 on 3m shares, Lucky Cement, lower by Rs1.30 at Rs72.50 on 3m shares and PTCL, off Rs1.35 at Rs32.45 on 2m shares.
Other actives were led by Zeal-Pak Cement, lower by 10 paisa at Rs1.55 on 4m shares, Al-Abbas Cement, off one rupee at Rs8.19 on 3m shares and D.G. Khan Cement, lower by Rs2.52 at Rs47.98 on 2m shares.
FORWARD COUNTER: Pakistan Petroleum led the list of actives on this counter and fell by Rs3.45 at Rs203.40 on 3m shares followed by OGDC, lower by Rs3.89 at Rs106 on 2m shares and Desconchem, off one rupee at Rs12.45 on 1m shares.
NIB Bank followed them, easy by 65 paisa at Rs8.89 on 0.787m shares and Lucky Cement, off Rs3.71 at Rs70.59 on 0.651m shares.
DEFAULTER COMPANIES: Trading on this counter again remained slow in the absence of leading investors owing to fall in the ready section. Unity Modaraba, however, came in for stray support and rose by 12 paisa at 89 paisa on 0.968m shares, while on the other hand Norrie Textiles fell by nine paisa at Rs1.55 on 0.530m shares.
DIVIDEND: Al-Meezan Mutual Fund, final cash 10 per cent for the year ended June 30, 2008, Pakistan Petroleum, bonus shares at the rate of 25 per cent.