The stock market recorded a sharp decline after selling spree centered around fuel, gas, cement and bank shares, where index declined by more than 1.75 percent where interest lacked, decreasing the share volume by more than 120 million shares.
The KSE-100 index moved down to 4804.59 from 4889.92, showing a fall of 85.33 points or 1.75 percent. The volume totalled at 286 million shares as against 407 million shares of Wednesday. The market capitalisation fell to Rs 1.253 trillion, from Rs 1.279 trillion.
Hasnain Asghar of Aziz Fidahusein, said the news that US agencies will conduct investigation on the nuclear proliferation issue, and the government might allow import of reconditioned cars of high-power aggravated the misery of the weak-holders, and the index underwent a major technical correction.
The index, however, found support below 4800 as institutional buying in the main stocks continued, the unclear statements never allowed the punters to resist the pressure technically, however, the index will continue to find support around 4790-4803.
The short-covering on Friday might allow index a healthy closing, 4870-4877. It is however, recommended to wait for detailed statements on the issues for trading activities, while availability of main stocks should be capitalised.
Tariq Hussain Khan, manager research at Live Securities, said the decision taken by the Federal Cabinet to reduce import duty on imported cars and lifting embargo on used and reconditioned cars erased share values.
Among other factors, the heavy COT volumes forced the investors to reduce their heavy exposure in sideboard items. Since the beginning, the market opened on a negative note and went down drastically due to continued selling-pressure in all the key items, he added.
Market sources said some institutional buying supported well at the lower level that helped the market restrict further erosion, he said, adding: "We remain optimistic on current market's tend and expect the market to recover immediately."
Shahab Farooq, research analyst from First Capital Equities, said the market went down over the US president's remarks on the nuclear pilferage from Pakistan and reduction in duties of new and used-cars, adding the trading volumes were lower which indicates that investors are still holding on to their positions, and is a sign of upward movement in the market in the coming days.
Aadil Ehtesham of Multiline Securities, said the nuclear proliferation cynicism that has dogged the stock market for the last couple of sessions intensified following the US president's latest remarks over WMD, revealing of an extensive black market weapons network led by our scientists.
These remarks rocked the boat in equity market promoted knee jerk amid panic selling in what had been in already overbought market, he added.
OGDC moved down to Rs 52 from Rs 53.75 on a volume of 52 million shares, FF Bin Qasim remained unchanged at Rs 20.30 on a business of 32 million shares, Dewan Salman showed a decline of 10 paisa to Rs 25.60 on a turnover of 27 million shares, PTCL suffered a decline of 35 paisa to Rs 38.95 on a trading of 17 million shares, and Hubco shed 20 paisa to Rs 39.40 on total deals of 16 million shares.
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