Karachi stocks market remained bearish Tuesday with the index nose-diving by 127.79 points or 1.04 per cent on the back of international and domestic factors, viewed the market observers.The trading volumes once again plunged to a record 28.368 million shares against 31.097 million of the previous day. The market analysts believe that decline in global stocks and commodities due to prevailing Europe and US debt crises coupled with the traders’ cautious approach towards the State Bank of Pakistan’s discount rate announcement at the end of this month played havoc with the investors’ confidence on the day.
The day saw the benchmark, KSE 100-share index, dipping to 11,767.00 points as against 11,894.79 points of Monday. The intraday high and low were recorded, respectively, at 11,894.79 and 11,751.41 points. “Bearish activity in stocks was witnessed across the board with record low activity at KSE,” said Ahsan Mehanti, a director at Arif Habib Investments. The shares traded at the ready-counter during the day totaled at 28.368 million, some 2.729 million down from 31.097 million shares traded a day earlier. The trading value, however, improved and swelled to Rs1.3 billion compared to the previous Rs1.1 billion. The market capitalisation accounted for Rs3.061 trillion, about one per cent down when compared with Rs3.093 trillion of the previous day.
Some 320 scrips were traded, of which 73 gained, 150 declined and 97 remained unchanged. Mehanti said that the head-on dip in the KSE 100-share index was stimulated by the fall in global stocks and commodities on the United States and European debt fears that affected sentiments of the risk-averse investors.
“Fall in global stocks and commodities on prevailing Europe and US debt crises played a catalyst role in the steep fall witnessed at the bourse,” the analyst said adding the investors stayed alarmed despite strong fundamentals in some local commodity stocks. “(The) investors remained cautious ahead of SBP policy announcement next week,” Mehanti said. The analyst said even the hopes for an ease in circular debt concerns in the country could not help restore the investors’ confidence. Fauji Fertiliser Bin Qasim was volume leader of the day seeing 2.39 million of its shares traded at the highest per share rate of Rs59.65.
The fertiliser giant’s share price depreciated by Rs1.58 and contracted to Rs58.04 after opening at Rs59.62. Other scrips that were marked among the top 10 best traded included Bank Al-Falah, Fatima Fertiliser Company, Lotte PakPTA, National Bank of Pakistan, NIB Bank Limited, J.O.V and CO, Fauji Fertiliser XD, MCB Bank Limited and Engro Corporation.
These scrips counted their traded shares, respectively, at 2.3 million, 2.3 million, 1.5 million, 1.3 million, 1.1 million, 0.943 million, 0.919 million, 0.895 million and 0.892 million. The turnover at future market also witnessed a downward trend and slid to 6.1153 million shares against the previous 6.773 million. The futures scrips that were rated as plus numbered 10, with 129 rated as minus and one unchanged.
NBP-NOV was the volume leader on the future market having 1.026 million of its shares traded during the day.
