Political warfare shatters confidence, KSE sheds 107pts


From the onset of the trading session the benchmark was sliding downwards with muted volumes. By mid day, the NRO implementation case verdict was announced that adversely impacted the market as the benchmark kissed a low of 10,771 points losing 107 points. Once again the court awarded few more days to implement the decision by Jan 16, 2011.
In case government was unable to implement the decision various option stated would be considered which may have unpleasant consequences. The extended timeframe available for implementation restricted the panic selling by investors as market recovered lost ground. The benchmark once again breached the 11k level and closed at 10,933 points.
Today turned out to be another dull trading day as only 44m shares were traded throughout the day. The index remained in red throughout the day over speculations regarding the Supreme Court’s decision of NRO case in fact it went as low as 10,771 points level when the decision was being announced, however some recovery was seen later. FFC and FFBL remained in red despite the Rs165 increase in urea prices announced last evening.
In the current situation, the current political warfare may continue to hamper investor confidence and market performance, said Bilal Asif at HHMFS. The KSE 30 index lost 62.76 points to close at 10061.44 levels, while All Share index closed at 7588.94 levels after losing 72.72 points. Total 52 scrips advanced 175 declined and 102 remain unchanged out of total 329 scrips traded.