KARACHI, Dec 17: The share market on Wednesday suffered fresh widespread decline for the third session in a row as investors continued to liquidate their long positions on the blue chip counters. The news of the IMF nod to the Rs20 billion market support fund failed to stimulate covering purchase despite a fresh galore of lower locks.
“Much water has already flown under the bridge before the delayed IMF clearance for much-talked Rs20 billion market fund,” said Hasnain Asghar Ali. “But there are not many investors to buy at the 40 per cent discounted prices,” he added.
The liquidity may not be the only worry of the prospective stock investors as they are also concerned about the security risks and law and order situation and the terribly weak economy, he said.
But Tabish H. Rajabali thinks investors are awaiting court ruling on the issue of CFS positions and a positive verdict on it could stimulate fresh buying at the attractively lower levels.
The benchmark 100-share KSE index shed another 338.96 points or 4.01 per cent at 8,105.63 making the total loss during the three post-floor sessions to 1,080.51 points or 12.26 per cent, eroding Rs114 billion from the market capital at Rs2,495.760 billion.
The market capital has fallen to $25 billion since the current downward drift started about five months from $75 billion, a staggering loss of $44 billion, said a leading analyst Ahsan Mehanti.
Most of the alternate buying and selling offers remained confined to undervalued shares on the perception of quick gains after the anticipated bull-run and reports of management changes was another supporting factor behind the large volume.
Minus signs again dominated the list under the lead of oil and bank shares, most of which were again subjected to lower locks. Habib Bank, National Bank and MCB Bank were leading among them, falling by Rs4.19 to Rs10.50, largest fall being in MCB Bank.
Oil shares followed them, notable losers among them being National Refinery, Pakistan Oilfields, Pakistan Petroleum and PSO, off by Rs7.94 to Rs12.07.
Other blue chips, ICI Pakistan, Packages, Millat Tractors, Engro Chemical, Adamjee Insurance and Pakistan Services, being latest addition, also received fresh massive battering from Rs5.73 to Rs26.43.
Advancing shares showed mostly fractional gains barring Ismail Industries, which rose by Rs2.05, Nimir Chemical and UDL Modaraba followed it, rising by one paisa to 34 paisa.
Trading volume rose further to 57.820m shares from the previous 25m shares but losers maintained a strong lead over the gainers at 142 to 14, with five shares holding onto the last levels.
TRG Pakistan led the list of actives, off 52 paisa at Rs1.30 on 15m shares, followed by Pakistan Cement, lower Re1 at Rs1.90 on 6m shares, Zeal Pak Cement, steady by 13 paisa at Rs0.63 on 5m shares, Pak PTA, easy by 40 paisa at Rs1.50 also 5m shares, KESC, up four paisa at Rs1.85 on 4m shares, Orix Bank, lower 20 paisa at Rs0.88 also on 4m shares and Dewan Salman, easy four paisa at Rs1.10 on 4m shares.
Telecard followed them, lower by 28 paisa at Rs1.66 on 2m shares, PIAC, easy by 15 paisa at Rs2.10 on 2m shares and Nimir Chemical, higher by 13 paisa at Rs1.31 also on 2m shares.
FORWARD COUNTER: Prices again fell across the board on this counter under the lead of bank and oil shares, but some others managed to finish with fractional gains under the lead of Media Time, which rose by one paisa at Rs10.99 on 1,000 shares but on the other hand NIB Bank was held unchanged at Rs6.49 on 500 shares.
Allied Bank and Bank of Punjab were quoted lower by three paisa and Rs1.19 at Rs22.50 without any transaction and so did others despite sharp fall in their ruling prices.
DEFAULTER COMPANIES: Barring Zeal Pak Cement which rose by 13 paisa at Rs0.63 on a large volume of 4.981m shares, all others showed fractional fall amid large volume in Unity Modaraba, up five paisa on 2.815m shares.
Al-Asif Sugar and Haydery Constructions were also traded actively but on the lower side on active selling.
RIGHT SHARES: Bank Alfalah, right shares at the rate of 50 per cent and Saleem Sugar, omitted the dividend for the year ended Sept 30, 2008.