Index plunges 3.41pc; investors continue selling

KARACHI — The KSE 100-share index yesterday took another massive plunge as bear onslaught continued in the form of panic selling followed by reports of fresh bomb blasts and deaths, pushing the KSE 100-share index lower by 466.47 points or 3.41 per cent at 13,193.37.

By A Correspondent

Published: Fri 20 Jul 2007, 9:46 AM

Last updated: Sat 4 Apr 2015, 10:21 PM

Over the last two sessions, it has shed 860.57 points or 6.21 per cent eroding Rs260.00 billion from the market capital at Rs3,866.00 billion and analysts said there is a possibility of fresh price erosions amid deteriorating law and order conditions in the country in the backdrop of successive suicide and bomb attacks.

Its Junior partner on the other hand crashed by 1,081 points or 7.09 per cent at 15,768.42.

Active selling and sharp fall in leading base shares, notably OGDC, National Bank, MCB, Bank of Punjab, Bank AlFalah contributed to steep decline in the index. National Bank for instance fell by Rs13.00 and so did MCB.

"I think the index level of 12,000 points could well prove a strong resistance level in the developing situation", said a leading analyst "but hastened to say much would depend on the law order situation".

What seems to have spread panic among the genuine and small investors followed by hasty selling was market talk of heavy unloading by some of the leading brokerage houses and financial institutions, he added.

"After a massive rise to an all-time highs, just a couple of sessions earlier,the market appears to be in a virtual turmoil", said a leading stock analyst Faisal A.Abbas adding "only sanity on the law and order front could restore past glory to it".

Analyst Ashraf Zakaria said bulls could hit back within no time on the strength of positive corporate news after needed corrective steps are taken by the government to ease the prevailing tense situation.

But in the traded session that has just ended there were more sellers than buyers and even speculative traders were conspicuous by their absence as an attractive bait of falling prices could not net them in.

Unilever Pakistan and Wyeth Pakistan managed to finish with gains of Rs50.00 and 96.50 but on the other hand JS & Co and Attock Petroleum fell by Rs32.45 and 25.55 respectively. Trading volume shrank to 322m shares from the previous 462 million shares as losers held a strong lead over the gainers at 344 to 34, with 16 shares holding on to the last levels.

Fauji Fertiliser Bin Qaim topped the list of actives, lower by 90 paisa at Rs44.90 on 22 million shares followed by Pak PTA, steady by 15 paisa at Rs6.65 on 19 million shares, OGDC, off Rs.2.40 at Rs117.55 on 18 million shares, Fauji Cement, easy 90 paisa at Rs19.90 also on 18 million shares, PTCL, off Rs2.80 at Rs56.50 on 16 million shares, Bank AlFalah, lower Rs2.65 at Rs52.30 on 11 million shares, and National Bank, off Rs12.65 at Rs240.35 also on 11 million shares.

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