Index sheds massive 341 points

The ongoing rift between Pakistan and United State also caused negative impact on the country's equity market on Monday and bearish trend was witnessed on Karachi share market due to selling pressure by local and foreign investors on concerns over the prevailing uncertainty. The KSE-100 index lost 341.83 points and closed at 11,265.03 points from 11,606.86 point. The index also hit intra-day low level of 11,153.29 points.
Trading, however, improved slightly and the volume at ready counter surged to 79.814 million shares as compared to 79.298 million shares traded on last Friday. Of 332 active scrips, 205 closed in negative and 42 in positive, while the values of 84 scrips remained unchanged.
Market capitalisation registered a massive decline of Rs 87.489 billion, ending at Rs 2.972 trillion against Rs 3.06 trillion. Fauji Fertiliser Bin Qasim was the volume leader with 8.45 million shares and lost Rs 1.52 to close at Rs 54.59. Lotte Pakistan PTA decline by Re 0.71 to close at Rs 11.52 with 8.12 million shares while Fatima Fertiliser Co and Jahangir Siddiqui Co decreased by Re 0.55 and Re 0.45 to close at Rs 17.22 and Rs 5.43 with trading volume of 7.61 million shares and 6.7 million shares respectively.
With trading volume of 5.11 million shares, National Bank of Pakistan lost Rs 2.26 to close at Rs 43.76. Azgard Nine declined by Re 0.49 to close at Rs 4.54 with 2.48 million shares, while share price of Hub Power Company plunged by Re 0.80 to close at Rs 40.67 with 2.2 million shares. Nishat Mills lost Rs 1.17 to close at Rs 46.11 with 2.04 million shares.
Bank of Punjab declined by Re 0.33 to close at Rs 5.80 with 2 million shares and Engro Corp decreased by Rs 5.96 to close at Rs 128.96 with 2 million shares. Mari Gas and Indus Dyeing were highest gainers, increasing by Rs 3.60 and Rs 1.83 to close at Rs 110.90 and Rs 416.64 respectively, while UniLever Pakistan and Nestle Pakistan were worst losers and declined by Rs 226.96 and Rs 134.60 to close at Rs 5,317.40 and Rs 3,305.90 respectively.
Ahsan Mehanti at Arif Habib Investments said that Pak-US hard talk was chief reason of massive fall in equity market. "Stocks fell sharply lower at KSE as investors react to US pressure and allegations to against Pak army and ISI", he added.
Asian markets' slide, uncertainty in global markets on unresolved Europe debt crisis, and fears on global economic condition affected the sentiment and stocks recovered from session lows on institutional support in blue chip scrips, he said. However, he said, investors remained concerned over Pak-US relations and release of US economic and security aid after US officials' allegations against ISI for support of Haqqani network, and at the same time the had some hope for favourable policy announcement by SBP early next month.