Karachi Stock Exchange plummets

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With the law and order situation predicted to get even worse judging by the eerie warning of a leading opposition party leader, the KSE-100 index plummeted by 284 points to close at 11,941 points. Not a single sector was spared in today’s carnage as a red blanket engulfed all the tickers on the exchange board.
The KSE 100 index closed at 11,941.72 levels with the loss of 284.61 points and total volume stood at 39,136,605 along with the total value of 1,962,015,099. KSE 30 index lost 300.20 points to close at 11,289.44 levels, and All Share index closed at 8,279.30 levels after losing 192.79 points. Total 32 scrips advanced 205 declined and 73 remained unchanged out of total 310 scrips traded.
Usually the savior of the index was OGDC became its biggest nemesis today as it contributed 105 points towards the index’s free fall. The intensity of the bearish spell saw floor caps set on ATRL and DAWH whereas NBP saw the same due to a morning news report highlighting the bank’s shady lending practices in violation of SBP mandates. Without any relief in sight to the city’s diminishing law and order situation, the index is bound to remain wrapped in this red blanket in intermediate term despite the positive results season in progress, said Ali Hussain, Sr. Investment Analyst at HMFS.
The high priced stocks faced severe sell-off, which let the said stocks not to sustain the high valuations due to curtailed local strength and absence of follow-up support along with the sectors and stocks facing, rising input cost and declining local and export demand, gas curtailment and high debt portfolio. Hasnain Asghar Ali at Aziz Fidahusein said caution is advised, with measurable discounts in consistent stocks away from various threats likely to continue to hit profitability and dividend paying capacity of various front line stocks for accumulation for both short and long term. While low volume strength (or hand shift on strength) should be taken as an opportunity to sell, as various high priced stocks dependent on syndicated efforts for gaining momentum, he added.