Rs 120 billion evaporates due to largest ever KSE index plunge

Staff Report

KARACHI: The bears overthrew the bulls at the Karachi Stock Exchange (KSE) on Thursday, as the benchmark index recorded its deepest ever plunge and the investors lost Rs 120 billion.

The KSE 100-share index scored yet another record falling 441.52 points, or 4.38 percent, to close the day at 9,636.37 points falling from the previous day’s closing at 10,077.89 points, according to the market report issued by KSE. The market capitalization plunged 4.3 percent to Rs 2.62 trillion as against total capitalization of Rs 2.74 trillion in the previous trading session.

“The market is making records on both directions,” said Hasnain Asghar Ali, an analyst at Aziz Fidahusain and Company Limited. “It was the second day for single day decline record.”

The market had made the record of single day decline in the previous session with loss of 225 points in a day. The earlier record of a single day decline was around 180 points way back in the last decade.

He said the biggest reason was the news regarding inquiry by the regulating authorities, which depressed market sentiments.

The absence of buyers for major stocks led to an overall decline in the activity, evident from large fall in trading volume figures.

Total trading volume declined by 61.5 percent to 256.68 million shares trade compared to 666.73 million shares traded during the previous session.

During the session 407 stocks were traded, 343 declined while only 37 could gain some value. Share value of 27 companies remained unchanged.

Pakistan PTA Limited was at the volume leader’s position with trading volume of 50.32 million shares. Its share value moved down by Rs 1.00 to close at Rs 14.75 from opening of Rs 15.75. Oil and Gas Development Company Limited (OGDCL) was second with trade of 39.25 million shares and its stock price declined by Rs 9.30 from the previous level of Rs 186.00 to close at Rs 176.70.

Pakistan Telecommunication Company Limited (PTCL) was third with trading volume of 17.95 million shares. The stock value declined by Rs 2.95 to close at Rs 83.65 compared to the opening at Rs 86.00. Stock price of National Bank of Pakistan (NBP) lost Rs 8.05 from opening at Rs 161.00 to close at Rs 152.95. Its 16.56 million shares were traded.

Pakistan International Airline (PIA) declined by 70 paisas from Rs 12.75 and closed at Rs 12.05 amid trade of 11.5 million shares. Share price of DG Khan Cement moved down by Rs 3.80 to close at Rs 72.80 compared to the opening level of Rs 76.60 while its 9.72 million shares were traded during the session.

National Foods recorded the highest appreciation gaining Rs 12.00 to close at Rs 178.00, while the biggest loser of the session was Wyeth Pakistan Limited declining Rs 60.00 to close at Rs 1,140.00.

At the futures counter PTCL-March was the volume leader with trade of 118.4 million contracts. Its price declined by Rs 2.20 to close at Rs 85.40 from the opening rate of Rs 87.60. On the second position was OGDCL-March with volume of 49.2 million contracts while its prices moved down by Rs 9.35 to close at Rs 178.35 from Rs 187.70.

Pakistan Petroleum Limited (PPL)-March was third as its 12.02 million contracts were traded and its stock value lost Rs 15.30 to close at Rs 291.55 from the opening rate at Rs 306.85.

Tanvir Abid, an analyst at Live Securities, advised the small investors to stay on the sidelines at least for the time being since the volatility in the market would lead to losses.

Mr Ali said going forward the market is expected to stay dull at least in the near future. The market needs some major news on economic or political front to regain its momentum.

This correction is likely to be positive for the market and the dull mood might continue for coming few sessions, said the analyst.

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