Index breaches 10,000-point barrier on nervous selling

KARACHI — The KSE 100-share index yesterday breached through the psycholigical barrier of 10,000 points at 9,853.18, off 318.21 points or 3.13 per cent on nervous selling.

By From Our Correspondent (KSE REPORT)

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Published: Tue 5 Aug 2008, 11:20 PM

Last updated: Sun 5 Apr 2015, 11:48 AM

"The fall of the index into 4-digit figure, signals that all may not be well on the bourse in the coming weeks also until the government steps in to slavage the situation after taking some more corrective steps", most analysts believe.

Already weighed down by economic worries, falling rupee (Rs73.00 to a dollar, weak economy and high inflation, the threat of blood shed in the city appears to be the last straw on the camel's back, analysts said.

"The country risk factor in the developing situation, notably the US pressure to reign ISI and do more in Fata may not be around but investors hate to investment until sanity returns to the capital market", they added.

The recomposed 100-share index surpassed its base of 10,000 points at 10,304.72 on March 15, 2005 on heavy buying in OGDC and D.G. Khan Cement but breached through it at 8,050.25 on April 4, 2005 for the first time and then steadily soared to all-time high so far at 15,674 points early this year.

The current breach is the second in its eight-year career and more disturbing amid loud whispering that that it could fall to any lows in the developing scenario on all the fronts, some analysts fear.

News from the political front, notably about the future of the coalition, leading to uncertainty on all the fronts needed to rope in investors in a falling market and at the current attractively lower levels,they said.

The opening was on the higher side as the KSE index early rose by 111 points on reports of settlement of margin calls on well over three dozen brokers in last Saturday's special session but the a galore of fresh lower locks in the current session could further aggravate the situation, said a leading broker.

Minus signs dominated the list under the lead of Nestle Pakistan and Bata Pakistan, off by Rs.64.41 and 28.92, but on the other hand Dawood Hercules and Murree Brewery managed to finish higher by Rs12.85 and 7.00.

Trading volume rose to 131m shares from the previous 73m shares but losers held a strong lead over the gainers at 221 to 44, with 13 shares holding on to the last levels.

NIB Bank again topped the list of actives,easy by two paisa at Rs8.96 on 14m shares followed by D.G. Khan Cement, off Rs2.58 at Rs48.95 on 11m shares, National Bank, Rs5.68 at Rs108.08 on 8m shares, Arif Habib Securities, lower by 6.34 at Rs120.65 on 7m shares, Nishat Mills,lower by Rs3.04 at Rs.57.76 on 5m shares, OGDC, off Rs4.64 also on 5m shares, and Pakistan Petroleum, lower Rs6.42 at Rs194.51 also on 5m shares.

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