KARACHI, Nov 1: Stocks on Monday received massive battering as the KSE 100-share index plunged by 85 points on panic-selling triggered partly by uncertainty about the US presidential elections and partly to below market expectations corporate results of most of the second-tier companies.
The KSE 100-share index fell by 85 points at 5,246.91 points, eroding Rs22 billion from the market capital at Rs1,456.652 billion.
But leading punters and some institutional traders did not ride the bandwagon of bears and kept to the sidelines holding on to their portfolios awaiting the outcome of the US elections as too much importance here is being attached to the winner.
The decline was general and covered the entire list irrespective of viability of some of the sectors as most of the heavy-weights were the chief target of profit-selling. Trading was light despite the fact that there were more sellers than buyers.
The KSE 100-share index crashed from the recent highs to 5,246.91 points, breaching through the barrier of 5,300, off 85.33 points or 2.60 per cent as compared to the weekend's 5,332.24 as all the leading base shares received massive battering.
Opinions are divided over the outcome of the US elections as like elsewhere stakeholders here also cherish the election victory of their respective candidates.
"A Bush defeat could well mean many bad things for the ruling elite," one broker fears "the panic-selling originated from those who have a stake in a Bush win but snap sell-off tells a different story".
But no one could precisely perceive who will be more supportive for the local policies and come to the aid of Pakistan at the time of need, brokers said.
However, both leading financial investors and punters make it point not to go too far for the winning candidate until his actions are judged by his deeds during the last four years, they said.
Central bank report warned about the hike in inflation to five per cent from four per cent and trade balance owing to oil price hike but hoped that the GDP growth rate of 6.5 per cent could be maintained owing to higher contribution of the industrial sector.
The other major destabilizing factor was well-below analyst predictions interim working results of most of the second-tier stocks, which in turn faced hasty unloading by both the general investor and the financial institutions.
The predictions of higher interim dividend by some of them worried those who had built-up long positions in them and are now out to sell at the falling prices, they said.
Minus signs again dominated the list, major losers among them being Millat Tractors, Lakson Tobacco and Unilever Pakistan, which fell by Rs10 to Rs50 followed by Berger Paints, Gatron Industries, Abbott Lab, and Javed Omer, which suffered fall ranging from Rs4 to Rs6.50.
They were followed by GlaxoSKF, Parke-Davis, Pakistan Services and Wyeth Pakistan, off Rs4 to Rs40.
Some of the leading shares managed to finish with an extended gain under the lead of Shahtaj Sugar, Pakistan Engineering, Merit Packaging, Pakistan Hotels, Valika Art Fabrics, Central Insurance and National Foods, which posted gains ranging from Rs4 to Rs9.
Trading volume fell to 102m shares from the previous 105m shares as losers maintained a strong lead over the gainers at 238 to 58, with 31 shares holding on to the last levels.
OGDC came in for active selling, off 90 paisa at Rs64.85 on 12m shares followed by National Bank, off Rs1.55 at Rs69.55 on 8m shares, D.G.Khan Cement, lower by also 1.55 at Rs46.50 on 7m shares, PTCL, lower 60 paisa at Rs37.65 on 7m shares and Nishat Mills, off Rs1.90 at Rs48.80 on 5m shares.
Other actives were led by Sui Northern Gas, off Rs2.70 on 5m shares, TRG Pakistan, lower one rupee on 4m shares, Bank of Punjab, lower Rs2.75 also on 4m shares, Fauji Fertilizer Bin Qasim, easy 55 paisa on 3m shares and PIAC, lower 30 paisa also on 3m shares.
FORWRAD COUNTER: Speculative issues on the forward counter came in for active selling and finished with sharp losses under the lead of overvalued ones, notably the energy shares.
Among the actives, OGDC was again on the top, off 95 paisa at Rs65.40 on 7m shares followed by PPL, lower Rs1.50 at Rs115.75 on 5m shares, D.G.Khan Cement, off Rs1.75 at Rs47 on 4m shares and National Bank, lower Rs1.05 at Rs70.15 on 2m shares. PTCL was also marked down by 40 paisa at Rs38.10 on 2m shares.
DEFAULTER COS: Trading on this counter was relatively slow in the absence of leading investors. Prices showed an erratic fractional change on all the counters amid slow deals. Barring Taxila Engineering and Metropolitan Steel, which suffered fall ranging from 90 paisa to Re1, other price changes were modest.
DIVIDEND: Muslim Commercial Bank, second interim at the rate of 15 per cent.