Stocks slide 3.18 percent

The Karachi share market witnessed panic selling on Thursday due to prevailing uncertainty in northern part of the country and President Musharraf's statement regarding the US and European Union warning. The benchmark KSE-100 index witnessed heavy loss of 390.12 points or 3.18 percent to close below 12,000 psychological level at 11,870.95 points.
"President Musharraf's statement affected the market sentiment negatively and created uncertainty among the investors", analysts said, adding the selling was witnessed both by local and foreign investors. The KSE-30 index declined by 520.86 points and settled at 13,673.59 points level.
The market started on a strong negative note and the KSE-100 index hit 11,707.04 points intra-day low level, down by 554.03 points. However, late buying in some selective stocks on attractive levels supported the index to minimise its intra-day losses and reach its closing level.
The overall market capitalisation declined by Rs 118 billion to Rs 3.656 trillion. Trading volume of ready market increased to 161.371 million shares as compared to 119.971 million shares traded a day earlier while the futures market turnover stood at 46.502 million shares against 48.064 million shares on Wednesday. Trading took place in 327 scrips, out of which 271 scrips closed in negative and only 40 scrips closed in positive while the value of 16 scrips remained unchanged.
NIB Bank was the volume leader of the day with 23.817 million shares lost Rs 0.72 to close at Rs 11.00. Arif Habib declined by Rs 4.99 to close at Rs 152.01 with 9.066 million shares. In E&P sector, OGDC and PPL decreased by Rs 1.80 and Rs 7.59 to close at Rs 123.20 and Rs 251.16 with 8.781 million shares and 5.553 million shares, respectively.
The selling pressure was also witnessed in cement sector, as Lucky Cement and DG Khan Cement lost Rs 3.55 and Rs 8.59 to close at Rs 8.348 million shares and 7.465 million shares respectively. KESC declined by Rs 0.29 to close at Rs 5.20 with 5.434 million shares.
Bank Alfalah and UBL decreased by Rs 2.13 and Rs 4.54 to close at Rs 40.47 and Rs 86.40 with 4.653 million shares and 4.207 million shares, respectively. Engro Chemical closed at Rs 275.55, down by Rs 14.50 with 3.876 million shares.
Among highest gainers, Fazal Textile and Unilever gained Rs 35.49 and Rs 21.00 to close at Rs 745.48 and Rs 2,375.00, respectively while among highest losers - Siemens Pakistan and Colgate Palmolive lost Rs 38.65 and Rs 31.75 to close at Rs 1,450.00 and Rs 603.25, respectively.
Ovais Siddiqui, head of International Sales at First Capital & Equities, said that overall market sentiments have been weakened due to prevailing uncertainty on political front in the country and geo-political situation. President Musharraf's statement also affected market sentiment negatively. Declining figures of portfolio investment and forex reserves show the outflow of foreign investments from the country, he added.
The foreign selling continued mainly in the banking sector on Thursday. The Senate's recommendation regarding increase in CVT was another negative signal, he said, adding that private funds remained sidelined.
Ahsan Mehanti at Shehzad Chamdia Securities said that uncertainty over Senate's proposal to the National Assembly to increase CVT from 0.02 to 0.04 percent created heavy selling pressure at the share market. On the other hand, uncertainty over cut in OMCs and refineries margins to be decided by the Economic Advisory Council was also forced the investors to offload their holdings.