Stocks suffer huge loss

The KSE-100 index on Wednesday witnessed a heavy fall of 271.73 points to close at 11,640.46 points due to investors'' concerns over foreign outflows from the capital market and the absence of follow-up support. The market opened on a positive note and the index hit 11,960.04 points intra-day high. However, the index dropped into deep red due to panic selling after mid-session to 11,563.51 points intra-day low level.
Trading improved and the volume at ready counter increased to 112.420 million shares as compared to 81.147 million shares traded on Tuesday. Market capitalisation declined by Rs 69 billion to Rs 3.053 trillion. Of the 336 active scrips, 174 closed in negative and 84 in positive, while the values of 78 stocks remained unchanged.
Fatima Fertiliser Co was the volume leader with 16.765 million shares, and lost Re 0.16 to close at Rs 24.22. Engro Corporation, Fauji Fertiliser Bin Qasim and Fauji Fertiliser Co (FFC) declined by Rs 2.44, Rs 1.96 and Rs 9.90 to close at Rs 124.94, Rs 61.71 and Rs 188.45 with 13.731 million shares, 6.331 million shares and 5.248 million shares respectively. PTCL decreased by Re 0.74 to close at Rs 10.78 with 7.257 million shares.
Lotte Pakistan PTA lost Re 0.34 to close at Rs 12.23 with 5.236 million shares. Arif Habib Corp declined by Re 0.39 to close at Rs 31.20 with 4.704 million shares. Azgard Nine decreased by Re 0.10 to close at Rs 4.19 with 3.851 million shares. POL and PPL declined by Rs 2.17 and Rs 8.98 to close at Rs 360.64 and Rs 170.79 with 2.996 million shares and 2.662 million shares respectively.
Unilever Pak and Colgate Palmolive were highest gainers, increasing by Rs 57.79 and Rs 13.15 to close at Rs 5699.91 and Rs 599.98 respectively, while Nestle Pakistan and Millat Tractors were worst losers, declining by Rs 15.01 and Rs 10.07 to close at Rs 3296.75 and Rs 387.59 respectively. Ahsan Mehanti at Arif Habib Investments said that bearish trend was witnessed in stocks across the board on investors'' concerns for rising economic uncertainty after record foreign outflow of $60 million and soaring current account deficit of $908 million in September.
He said that the rumours dominated the sentiment in the earnings announcement session at KSE after rising circular debt concerns in Pakistan energy sector and gas shortfall for fertiliser sector caused shutdown of production plants. He said that recovery in global stocks and rising trend in local commodity prices proved positive for short recovery in a volatile trading session at KSE.