Bears reigned supreme at the Karachi stock market on Tuesday as the State Bank of Pakistan (SBP) kept the discount rate unchanged in its monetary policy, which propelled investors to offload their holdings.
The Karachi Stock Exchange (KSE) 100-share index shed 258.97 points or 2.67 percent to close at 9,428.44 points as compared to previous session’s 9,687.41 points. The KSE 30-share index closed at 9,402.04 points with a loss of 297.22 points. The KMI 30 closed at 14,333.91 points with a fall of 336.84 points. The KSE 100 all-share index closed at 6,621.97 points, with a decline of 186.36 points. Analysts said the market opened in the red zone and this sentiment remained prevalent throughout the trading session in the wake of ongoing political uncertainty over the National Reconciliation Ordinance (NRO) case restricting investors from holding their positions. The market at one stage fell more than 3 percent.
The market turnover went up by 83.85 percent and traded 135.43 million shares as compared with previous session’s 73.66 million shares. The overall market capitalisation was down by 2.70 percent and traded Rs 2.657 trillion as against Rs 2.731 trillion. Out of total 435 companies, 72 closed in the positive zone, 352 in negative and 11 remained unchanged.
“Heavy selling was witnessed across-the-board in all major scrips as investors adopted a cautious stance over plunge in international and regional markets,” said Topline Sec analyst Farhan Seth. “Furthermore political uncertainty over the NRO case also restricted investors to hold onto their positions.”
However, some buying was witnessed in the end due to attractive valuations. “Intense selling continued as the SBP kept status quo on the key discount rate in the monetary policy announced yesterday (Monday),” said Shahzad Chamdia Sec senior analyst Ahsan Mehanti. “Uncertainty over the federal budget announcements, fall in Asian capital markets and rumours on default of stock brokers played a catalyst role in the negative activity despite support by state-run mutual funds throughout the trading session.”
“Corporate and retail investors offloaded their holdings in blue chips,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. “Cautious accumulation by corporate participants did offer mild resistance but the activity failed to have a major impact on the sentiment, which continued to stay negative.”
The KSE 100-share index opened in the red zone with a loss of 25.72 points and at the end of the day closed at 9,428.44 points with a decrease of 258.97 points.
Lotte Pakistan PTA was the volume leader with 14.35 million shares as it closed at Rs 9.10 after opening at Rs 9.73, shedding 63 paisas. TRG Pakistan Ltd traded 6.39 million shares as it closed at Rs 4.64 from its opening at Rs 4.98, losing 34 paisas.
Jah Siddi and Co traded 5.94 million shares as it closed at Rs 13.49 as against its opening at Rs 14.49, declining Re 1. Silkbank traded 5.49 million shares as it closed at Rs 2.99 as compared to its opening at Rs 3.07, decreasing eight paisas.