The rumour that Prime Minister Zafarullah Khan Jamali has resigned spread in stock market like jungle fire and played havoc with investors, forcing them to sell their share holdings and pushing the index into red territory.
The KSE-100 index lost 45.33 points, or 0.88 percent, to 5105.69 from 5151.02 and turnover of 237 million shares against 258 million shares of Thursday.
The market showed erratic movement but some buying later helped the index to finish with a gain of 12 points at the end of first session. However, during the session punters deliberately infused a rumour that the prime minister had resigned, which engulfed selling pressure and the panic gripped the market, lowering share values.
Cyra Patricia at Live Securities said that contrary to general perception, the market concluded on a negative note, indicating lack of investors' interest due to political instability hovering over capital market.
Though the market failed to contain its bullish pattern, it, however, managed to trade above 5100 level despite selling pressure.
The start was excellent as the investors built hopes for further increases on positive sentiment concerning blue chip companies. The fall in the index was attributed to political issues and rumours of Prime Minister Jamali's resignation.
Aadil Ehtesham from Multiline Securities said that the stocks like PSO, D G Khan Cement, Hubco, Engro, Fauji, ICI, Sui Northern Gas and OGDC showed weakness, while the sideboard stocks spearheaded the decline and showed mild losses.
The impetus this time was attributed to political reshuffling in the country on the back of some rumours about resignation of PM Jamali.
Hasnain Asghar said that the closing hour of the session was eventful as the rumours of political changes in the country forced the weak holders to square there position at the available rates thereby leading to an adjusted closing.
Stability on political grounds, ongoing development on India-Pakistan peace process, annual and bi-annual corporate announcements and ongoing privatisation process committed a healthy market in short and medium term while steady economic growth and improved law and order situation will keep the temptation of the local bourses alive.
OGDC lost 80 paisa to Rs 61.65 on business of 17.6 million shares; PTCL suffered a decline of 35 paisa to Rs 41.60 on volume of 13.9 million shares; D G Khan Cement moved down to Rs 55.55 from Rs 56.90 on trading of 12.7 million shares; TRG Pak (R) rose Rs 1.10 to Rs 7 on deals of 11.8 million shares; and FF Bin Qasim rose 10 paisa to Rs 18.35 on turnover of 11.4 million shares.
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