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Index sheds another 83 points

KARACHI — Trading on the Karachi stock market yesterday resumed on an easy note as investors were in no mood to cover positions at the current levels owing partly to the continued weakness of the rupee and an uncertain political situation.

The KSE 100-share index maintained its creeping decline and shed another 83.28 points at 11,878.38, which was incidentally the session's lower, reflecting the general absence of investors. Its junior partners, the KSE 30-share index was off 123.98 points at 13,728.54.

On the open market, the Pakistani rupee hit a new low at 70.70 and 71.10 for buying and selling respectively as investors seeking safe havens continued to build-up long positions in the dollar, analyst Hasnain Asghar Ali said.

Investors are awaiting the proposed meeting of the KSE on July 15 to review the current changes in upper and lower circuit breakers amid hopes that the previous lower lock of five per cent is expected to be restored to push the turnover figure from the current lows, he added.

“Why should investors put money in stocks amid a phenomenon of depreciating value of the rupee. They have other safe havens where their investment is safe and could appreciate,” he added.

But analyst Ahsan Mehanti said the increase in the turnover figure at 17 million shares after several lean sessions and an all-time fall in volume figure to 5.348 million shares reflects that a section of investors has already resumed covering purchases on selected counters.

Indications are that the current short-covering at lows could develop into a strong rally any day as the sell-off seems to have overdone its intensity on technical grounds, he said.

But the news from the political front and the law and order situation, notably in the backdrop of Sunday's Islamabad suicide attack are not that not positive, which could lure investors back in the market, some others said.

Minus signs held a strong lead over the gainers under the lead of JS & CO and PSO, off by Rs5.08 and 4.16 respectively, but on the other hand some secondliners managed to finish higher by Rs9.77 and Rs8 for Dadex Eternit and Al Abbas Sugar, respectively.

Trading volume rose to 16.879 million shares from the previous 5.348 million shares as gainers trailed far behind the losers at 18 to 125, with 23 shares holding on to the last levels.

Bank AlFalah led the list of actives, lower by 41-paisa at Rs39.46 on five million shares, followed by National Bank, off Rs1.43 at Rs141.70 on three million shares, D.G. Khan Cement, easy by 64-paisa at Rs63.87 on two million shares, PACE Pakistan, unchanged at Rs28.06 also on two million shares, Sui Southern Gas, lower by 24-paisa at Rs26.71 on 0.800 million shares, OGDCL, off Rs1.20 at Rs119.52 on 0.506 million shares and NIB Bank, easy by 10-paisa at Rs10.83 on 0.323 million shares.