The Karachi Stock Exchange on Friday witnessed panic selling due to uncertainty on political front. As a result, KSE-100 index registered a heavy loss of 315.74 points to close at 11,223.52 points. The market opened on a strong negative note and the index hit 11,102.08 points intra-day high, down 437.18 points. However, some recovery was witnessed before closing due to selective buying in late hours.
Trading volume at ready counter increased to 156.838 million shares as compared to 80.203 million shares traded on Thursday. Market capitalisation declined by Rs 83 billion to Rs 3.037 trillion. Of 363 active stocks, 246 closed in negative and 42 in positive, while the values of 75 stocks remained unchanged.
Lotte Pakistan PTA was the volume leader with 37.646 million shares. However, it lost Re 0.99 to close at Rs 14.08. Arif Habib Corp declined by Re 0.92 to close at Rs 18.97 with 13.056 million shares. Fauji Fertiliser Bin Qasim decreased by Re 0.15 to close at Rs 39.37 with 6.892 million shares. Azgard Nine lost Re 0.98 to close at Rs 8.17 with 5.601 million shares.
NBP plunged by Rs 2.47 to close at Rs 67.01 with 5.444 million shares. Amtex lost Re 0.36 to close at Rs 2.51 with 4.387 million shares. POL declined by Rs 9.78 to close at Rs 281.89 with 4.314 million shares. Jahangir Siddiqui Co lost Re 0.60 to close at Rs 8.26 with 4.042 million shares. Hub Power decreased by Re 0.24 to close at Rs 36.96 with 3.999 million shares. SilkBank lost Re 0.08 to close at Rs 2.11 with 3.514 million shares. Rafhan Maize and Ismail Industries were the highest gainers increasing by Rs 57.30 and Rs 4.09 to close at Rs 2622.72 and Rs 85.90 respectively, while Unilever Pak and Nestle Pakistan were the worst losers declining by Rs 239.43 and Rs 26.99 to close at Rs 4555.42 and Rs 3407.50 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that bears were in total control, right from the word go. The syndicate of participants operating from both local and offshore accounts stayed as major sellers, along with the participants facing threat of redemption. They were joined by fresh float to address margin calls, thus painting the board red. The nervousness being displayed by the syndicate responsible for recently attainted levels was certainly due to critical situation of economic, financial, political and diplomatic situation, disallowing the local participants to resist the massive onslaught as, in the given scenario identifying bottom of various main board stocks, stayed a tough task.
He said that the sell-off that started from post-result price erosion due to below expectations earnings and payout announcements by main board stocks made justification of the attained levels tough, and turned in a major tsunami. Day-end short covering and corporate accumulation at lower locks, however, did reduce some losses. Strength will, however, continue to invite fresh float in the main board and high priced stocks. Caution was therefore visible.
The equity stock funds, which were hard to find, however, did come in for placement in high dividend yielding stocks, while the others preferred to stay liquid and opted for currency hedge. Since the desired risk adjusted rates of return have certainly increased, only a few listed stocks are likely to qualify the stringent litmus test of sustaining growth. Dividend flows options are certainly limited for both corporate and retail participants, thus keeping the stance highly cautious.