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Bomb blast in Rawalpindi drags KSE index 287 points down

KARACHI: The Karachi stock market witnessed intense selling pressure on the first trading day of the week Monday after a suicide bomb blast in Rawalpindi killed 35 people.

The Karachi Stock Exchange (KSE) 100-share index decreased by 286.78 points or 3.13 percent to close at 8,872.40 points as compared to the previous session’s 9,159.18 points. The KSE 30-share index closed at 9,315.95 points with a fall of 346.92 points. The KMI 30 index closed at 12,779.96 points with a decline of 465.52 points.

Analysts said another factor, which affected the market sentiment towards the close was that the Muttahida Qaumi Movement (MQM), a coalition partner in the federal and Sindh government, said it would oppose the controversial National Reconciliation Order in the parliament. The bearish run continued at the market, which failed to capitalise on the initial session’s positive opening.

Another feature of the day was trading of low volumes reflecting lack of confidence among investors. The market turnover went down by 15.12 percent and traded 152.04 million shares as compared to previous session’s 179.13 million shares. The overall market capitalisation went down by 3.05 percent trading Rs 2.574 trillion as against the previous session’s Rs 2.655 trillion. Out of total 403 companies, 88 closed in the positive zone, 298 in negative and 17 remained unchanged.

“Dull opening pushed the market in the stagnation mode and low volumes kept the index in the negative zone, although government’s stance to maintain fuel prices locally, at least till the fuel price formula is approved by IMF, is expected to restrict the sticky inflationary numbers from increasing at a rapid pace,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. A couple of below expectations announcements added to the nervousness and the absence of decent quantum buyers did reduce the intensity of the decline, which otherwise would have been much higher.” The Rawalpindi blast added to the nervousness of investors and the index started melting and more than a triple digit adjustment was soon witnessed, he said and added that although cautious support in the main board stocks was extended to avoid unprecedented decline, but stagnation did force frustration to surface and selling pressure increased during the session wiping off a good sum.

“Announcement of opposing the NRO by the MQM and Pakistan Muslim League-Nawaz invited intense selling by retail and institutional investors on expectations of changes in the Pakistan People’s Party leadership,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. “Investors remained concerned over deteriorating economic and security situation in the country throughout the session.” The KSE 100-share index opened in the green zone with a gain of 23.22 points and at the end of the day closed at 8,872.40 points with a loss of 286.78 points.

JSCL was the volume leader in the share market with 15.94 million shares as it closed at Rs 33.35 after opening at Rs 35.10, losing Rs 1.75. TRG Pakistan Ltd traded 12.75 million shares as it closed at Rs 2.15 from its opening at Rs 2.62, shedding 47 piasas. Pak PTA Ltd traded 6.63 million shares as it closed at Rs 6.63 as against its opening at Rs 7.10, shedding 47 paisas. Bank Alfalah traded 9.21 million shares as it closed at Rs 12.81 as compared to its opening at Rs 13.53, decreasing 72 paisas. staff report

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