A bearish trend continued on Karachi share market on Wednesday due to selling by both local and foreign investors, and KSE-100 index lost 133.03 points, closing at 11,633.97 points. Although the opening was positive and the index hit 11,836.21 points intra-day high, the trend could not continue as investors opted for selling on concerns over political situation in the country and declining trend in other regional markets.
Trading volume improved slightly, though remaining on the lower side at 33.565 million shares as compared to Tuesday's 28.368 million shares. Market capitalisation declined by Rs 33 billion to Rs 3.028 trillion. Of 310 active stocks, 159 closed in negative and 69 in positive, while the values of 82 scrips remained unchanged.
Bank Al Falah was the volume leader with 3.307 million shares and gained Re 0.05 to close at Rs 11.95. NBP declined by Re 0.75 to close at Rs 42.95 with 1.286 million shares. Azgard Nine decreased by Re 0.21 to close at Rs 3.34 with 2.270 million shares. Lotte Pakistan PTA lost Re 0.22 to close at Rs 10.10 with 2.063 million shares. TRG Pakistan closed at Rs 1.40, down Re 0.08 with 1.997 million shares.
In the fertiliser sector, Fauji Fertiliser Bin Qasim, Fauji Fertiliser and Fatima Fertiliser declined by Re 0.89, Rs 2.51 and Re 0.21 to close at Rs 57.15, Rs 168.30 and Rs 22.57 with 1.809 million shares, 1.646 million shares and 1.363 million shares respectively. Nishat Mills lost Rs 1.27 to close at Rs 42.31 with 1.137 million shares. PTCL gained Re 0.09 to close at Rs 10.69 with 1.081 million shares.
Unilever Pak and Bata (Pak) were highest gainers by Rs 40.30 and Rs 34.73 to close at Rs 5440.00 and Rs 745.07 respectively, while Nestle Pakistan and Siemens Pak were worst losers by Rs 144.76 and Rs 14.89 to close at Rs 2810.98 and Rs 860.11 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the low volume gains during early trade faced massive resistance by the incoming float, offered mainly by roll-over participants, along with corporate offloading in high priced stocks. This pushed the index into the red zone. Horrified by low volumes and absence of buyers, and threatened by various market rumours, the market men continued the selling spree, which increased as the day went by, forcing triple digit decline by day end.
He said that the tremors being sent due to sinking volumes seemingly forced the participants to sell even the dividend yielding stocks away from the visible threats. The stocks miserably struggled to invite buyers even on deep discounts, keeping equities under tremendous pressure. Although the storm was still in the making the lull continued to signal caution, mainly due to the holdings held against financing by various financiers.
Prolonged stagnation and tough investment horizon, therefore, increased the probability of likely panic sell-off. He said that the heightened political uncertainties, along with awkward fiscal numbers, likely to face further pressure with IMF payback period coming closer, might continue to keep the local currency under pressure.