Kse Crashes 497 Points As Investors Lose Confidence

By By our correspondent
6/17/2008
KARACHI: The equity market on Monday witnessed intense selling pressure throughout the session as the benchmark KSE 100-share index slumped 497.43 points to close at 12,444.13. ( from 15k points to 12k points in just few days)

Investors offloaded their positions in absence of any positive news and persistent political jitters.

The KSE 30-index closed at 14,552.29 points with a loss of 687.26 points. All shares index closed at 8,931.88 with a loss of 338.94 points. Market capitalisation stood at Rs3.83 trillion as compared to Rs3.98 trillion at the weekend.

The market could not digest weekend developments. Moody’s has reported that Pakistan is losing investors’ confidence, the rupee-dollar parity will further widen with the rupee depreciating by 15 per cent to reach Rs75 per dollar from the current level of around Rs67 per dollar. The news that five banks were near collapse further dampened market sentiments.

Saad bin Ahmed, Head of Research Capital One Equities, said investors were concerned over falling SCRA balances and rumours regarding banking sector. He said that in the long run it is expected that the State Bank will further increase the discount rate, which will have a negative impact on the market.

The local bourse continues to seek consolidation said Hasnain Asghar Ali of Aziz Fidahusein. Persons having access to international avenues for investments are not likely to think twice while the local investors from middle-income group are likely to shift to NSS and commercial papers, he said. Ali said if this adjustment continues on a natural course the consequences might be unbelievable.

Without taking any responsibility Hasnain Asghar Ali said it is therefore recommended to hold on only to the stocks that are likely to sail smooth despite all the odds and having a sound cash flow, besides them offloading in others can be opted for till of course the authorities decide to take up the economic and social issues seriously.

Ready market volume stood at 107.52 million shares as compared to last trading session 104 million. Future market volume stood at 40.186 million shares as compared to last trading session 34.597 million.

Highest volumes were witnessed in NIB with 5.663 million shares closed at Rs12.40 with a loss of 60 paisa followed by Adamjee Insurance at 4.709 million shares closed at Rs276.40 with a gain of Rs5.15 and DGKC at 4.573 million shares closed at Rs70.68 with a loss of Rs3.72, National Bank with 4.449 million shares closed at Rs164.35 with loss of Rs8.65, Oil & Gas Dev.XD with 4.041 million shares closed at Rs125 with loss of Rs4.95, Arif Habib Securities with 3.666 million shares closed at Rs162.5 with loss of Rs8.55, Fauji Fert Bin with 3.194 million shares closed at Rs36.75 with loss of Rs1.2, Azgard Nine with 3.15 million shares closed at Rs62.7 with loss of Rs.3.3, Pak Petroleum with 3.102 million shares closed at Rs257.5 with loss of Rs.11.5 and Nishat Mills with 3.054 million shares closed at Rs93.58 with loss of Rs4.92.


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