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KSE-100 sheds 94 points as terror strikes halt foreign investment

KARACHI: The Karachi stock market continued to remain under the cycle of intense selling pressure on Thursday, as investors kept to the sidelines due to lack of foreign investment.

The Karachi Stock Exchange (KSE) 100-share index decreased by 93.79 points or 1.01 percent to close at 9,154.00 points as compared to the previous session’s 9,247.79 points. The KSE 30-share index closed at 9,662.20 points with a loss of 108.03 points. The KMI 30 index closed at 13,325.83 points with a fall of 24.19 points.

Analysts said that the precarious law and order situation across the country is taking heavy toll on the market as the it despite opening on a positive note closed negatively spurred by early morning violence in Islamabad, which claimed precious lives of army personnel including a high ranking official.

The market turnover went down by 7.39 percent and traded 189.18 million shares as compared with the previous session’s 204.28 million shares. The overall market capitalisation was down by 0.93 percent to close at Rs 2.653 trillion as against Rs 2.678 trillion of the previous session. Out of total 397 companies, 104 closed in the positive zone, 271 in negative and 22 remained unchanged.

“Hostage to the activities of off-shore players the market after witnessing and initial technical breather amid low volume and range-bound movement witnessed massive sell-off around mid-day,” said analysts at Aziz Fida Husein and Co Husnein Asghar Ali. “Since cautious buyers with low quantum failed to digest the float offered by off-shore players massive price erosion was quite prominent, as the initial sell-off found contribution by the local corporate participants.”

The stocks attaining the values wherein their multiples were in line with the local strength did invite accumulation by local high net worth and corporate participants’ since the recent dollar-based run-up targeted index heavy weights, he said and added that losses incurred in the stocks still being termed expensive failed to invite local liquidity keeping the market in the extreme red.

“Strong result announcements and rising global commodity prices supported the market near the end of the trading session despite major concerns over security situation in the country over South Waziristan’s military operation,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

The KSE 100-share index opened in the green zone with a gain of 6.94 points and at the end of the day closed at 9,154.00 with a loss of 93.79 points. Bank Alfalah traded 11.32 million shares as it closed at Rs 13.66 as compared with its opening at Rs 14.09, slumping 43 paisas. staff report

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