RECORDER REPORT
KARACHI: Weighed by a decline in international oil prices and the Peshawar carnage, the benchmark 100-share index of Karachi Stock Exchange plummeted by 813.82 points or 2.57 percent to close at 30,876.28 points Tuesday.
Fahad Khan, an analyst with Adam Securities, said bears thrashed the market amid crisis in Dubai stock market coupled with domestic political turmoil and terror attack in Peshawar. He said the downfall in oil and gas sector scrips led the bearish rally at the local bourse.
Fahad Qasim of Topline said the KSE-100 index witnessed steepest fall of 813.82 since August 2014 when the market plummeted by 1,309 points.
He believed that the main reason for this sharp decline was global stock market rout while weak oil prices led to uncertainty over global economic growth.
Foreign Investors Portfolio Investments (FIPI) net selling of $32 million in last seven trading sessions (December 5 to 15, 2014) clearly signals that Pakistan market is following global market trend where all the countries whether they are net exporter or net importer of oil are being affected.
He said foreigners had bought shares worth $2.3 billion and sold $1.9 billion, resulting in net buying of $399 million. He added that inclusive UBL offering, net foreign buying in 2014 to date stands at $710 million.
He said liquidity crunch in the local market was also one of the reasons for the recent fall in KSE-100 Index and added that three IPOs worth Rs 15 billion and with subscriptions of Rs 23 billion in last 2 weeks have resulted in funds, being stuck up with these offerings.
Ahsan Mehanti of Arif Habib Corp said political clashes in Punjab amid protests, falling trend in international oil prices to a five-year low and weakening earnings outlook in blue chip oil stocks played a catalytic role in bearish activity at KSE, despite support in select cement stocks on falling trend in coal prices and rising dispatches in July-Nov 2014.
During the intraday trading, the KSE-100 index remained sporadic, touching highest level of 31717.02 points and plunging to 30,808.76 points lowest level.
The KSE-100 index closed at 30,876.28 points, down by 2.57 percent or 813.82 points as compared to 31,690.10 points on Monday.
Trading took place in 391 scrips, of which 52 closed in positive, 321 closed with minus signs and the value of 18 scrips remained unchanged.
B.O. Punjab emerged volume leader with 29.50 million shares, up Re. 0.27 to close at Rs. 10.17. Jah.Sidd.Co stood second, down Re. 0.50 to close at Rs. 14.54 on 11.48 million shares. Maple Leaf Cement closed at Rs 40.60, down Rs 1.52 on 10.90 million shares.
Pak Elektron lost Rs 1.49 to close at Rs 36.48 on 10.10 million shares.
KASB Bank Ltd rose by Re 0.20 to close at Rs. 2.41 on 9.44 million shares. Sui North Gas moved up by Re 0.59 to close at Rs. 28.48 on 9.10 million shares. Fauji Cement closed at Rs 23.85, down Re 0.60 on 7.58 million shares. Sui South Gas gained Re 0.81 to close at Rs. 38.87 on 7.30 million shares. Fauji Fert BinXD closed at Rs 43.52, up Re 0.61 on 7.08 million shares. Lafarge Pak lost Re 0.34 to close at Rs 16.95 on 6.47 million shares.
Island Textile and Ferozsons (Lab) were the top gainers with Rs 42.49 and Rs 10.38 to close at Rs 999.99 and Rs 579.40, respectively. Rafhan Maize and Bata (Pak) were the worst losers with Rs 300 and Rs 147.99 to close at Rs. 9,900 and Rs. 3,342, respectively.
