Index down 61.37 points

Negative trend continued at the Karachi share market on Wednesday and the KSE-100 index lost another 61.37 points to close at the level of 11,734.72 with extremely thin volume. The market witnessed some support in early hours and the index, after positive opening, hit 11,813.55 points intra-day high. However, selling by both local and foreign fronts forced the index into negative and 11,714.48 points intra-day low level.
Due to investors' lack of interest, trading shrank drastically and the volume at ready counter declined to 45.822 million shares as compared to 50.592 million shares traded on Tuesday. Market capitalisation declined by Rs 15 billion to Rs 3.129 trillion.
Of the 360 active scrips, 171 closed in negative and 100 in positive, while the values of 89 scrips remained unchanged. DG Khan (R) was the volume leader with 5.432 million shares. However, it lost Re 0.13 to close at Rs 4.80. Lotte Pakistan PTA decreased by Re 0.05 to close at Rs 15.72 with 2.435 million shares. Kot Addu Power Co inched up by Re 0.02 to close at Rs 41.32 with 2.393 million shares. Azgard Nine lost Re 0.04 to close at Rs 7.76 with 2.088 million shares.
Engro Corp declined by Rs 3.44 to close at Rs 198.80 with 2.070 million shares. DG Khan Cement decreased by Re 0.36 to close at Rs 24.15 with 1.998 million shares. Fauji Fertiliser Bin Qasim lost Re 0.55 to close at Rs 40.44 with 1.899 million shares. Jahangir Siddiqui Co closed at Rs 7.55, down Re 0.08 with 1.258 million shares. Nishat Power lost Re 0.19 to close at Rs 16.28 with 1.106 million shares. Arif Habib Corp decreased by Re 0.28 to close at Rs 23.93 with 1.073 million shares.
Unilever Pak and Wyeth Pak were the highest gainers, increasing by Rs 64.41 and Rs 5.88 to close at Rs 4997.15 and Rs 1001.41 respectively, while Indus Dyeing and Nestle Pakistan were the worst losers, declining by Rs 15.11 and Rs 9.61 to close at Rs 288.35 and Rs 3496.92 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the low volume price erosion, led by high priced stocks, was quite prominent from the early trade. The sell-off through offshore channels, mainly due to prolonged stagnation, was duly joined by local retail and corporate participants, keeping the index under pressure. Although increasing discounts in various dividend yielding stocks did invite cautious accumulation, gloomy economic and financial horizon restricted aggressive activity, offering little or no resistance to the incoming float.
He said the stocks trading at high multiples along with some facing burden of heavy and expensive debt, and those suffering from wounds of double-edged sword, ie rising input cost and low export and local demand, stayed the major victims of the ongoing sell-off, not to forget those experiencing a massive run-down on reserves on the popular excuse of circular debt.
However, shift of turnover from low priced to main board stocks, mainly due to availability of leverage, strengthened the locals enough to dare the offshore sell-off in select stocks, making it through the stringent litmus test. However, rumours regarding a likely proposal of doing away with CGT, at least from the currently implemented format, did play a vital role of restricting the benchmark from otherwise an unprecedented decline, allowing the index to honour the support of 11710-11717, at least for the day. Steep decline in turnover, however, stayed a point of grave concern.