KARACHI: The Karachi stock market witnessed a massive decline on Tuesday as decline in the local currency’s value against the dollar, futures rollover week and confusion over brokers’ net capital affected the investor sentiment.
The Karachi Stock Exchange (KSE) 100-share index shed 551.48 points or 2.33 percent to close at 23,088.49 points as compared to previous session’s 23,639.97 points. The KSE 30-share index shed 483.32 points to close at 17,637.25 points as against 18,120.57 points.
“Futures rollover week and confusion on brokers’ net capital affected the market sentiment,” said Topline Sec AVP Equity Sales Samar Iqbal. “The market heavyweights MCB and OGDC contributed around 200 points to the market fall.” MCB declined by Rs 14 and OGDC by Rs 6.4. Telecard remained the volume leader amid profit growth expectations as 28 million shares exchanged hands while share price registered a growth of 9.0 percent. Bank of Punjab (BoP) and National Bank also remained active with 23 million shares and 15 million shares, respectively.
The market turnover went up by 56.69 percent and traded 235.88 million shares as against 150.53 million shares of the previous session. The overall market capitalisation went down by 2.21 percent and traded Rs 5.419 trillion as compared to Rs 5.542 trillion. Losers beat gainers 232 to 97, while 25 stocks were unchanged.
“Finally the benchmark came under severe pressure as the 100-share index lost nearly 552 points,” said Habib Metropolitan Financial Services analyst Bilal Asif. “The exploration and production companies were beaten hard by the market.”
On the other hand MCB and UBL were under pressure, which seems justified after witnessing a bullish rally. Probably the economic conditions and possible increase in discount rate backed by anticipated inflation numbers can be considered as the justified reason. Rumours in the market related to realignment of equity portfolio of a few big institutions enhanced the selling pressure. The rupee remained under pressure backed by dollar buying from the open market. Foreign fund managers were selling Pakistan equities with shares worth nearly $10.34 million. He believed movement in discount rate is in perfect negative correlation with the stock market, hence with possible rise in discount rate equities are likely to remain under pressure.
The KMI 30-share index shed 801.05 points to close at 38,462.63 points as against 39,263.88 points. The KSE all-share index declined 374.32 points to 16,554.54 points as compared to 16,928.88 points.
“The market continued with its correction phase,” said JS Research analyst Mujtaba Barakzai. “Rumoured institutional and foreign selling was witnessed across exploration and production, banks and oil marketing companies sectors. Telecard was in the limelight as the ICH agreement is likely to boost company’s bottomline.
Telecard Ltd was the volume leader in the market with 27.76 million shares as it closed at Rs 6.86 from its opening at Rs 6.30, gaining 56 paisas.
BoP traded 21.03 million shares and closed at Rs 12.42 as compared to its opening at Rs 12.73, shedding 31 paisas. NBP traded 14.92 million shares as it closed at Rs 54 as against its opening at Rs 56.06, losing Rs 2.06. Nimir Ind Chemicals traded 13.64 million shares as it closed at Rs 7.18 as against its opening at Rs 6.18, rising Re 1.0.
Source: Daily times