Share prices suffered decline on concern that relationship between Pakistan and India would suffer if BJP fails to form the government, hurting investors' confidence.
The KSE-100 index fell 103.71 points or 1.90 percent to 5354.15 as against 5457.86, while the volume rose to 376 million shares as compared with 302 million shares of Tuesday.
The market for the last three sessions have lost 171 points while the Mumbai Stock Exchange fell more than 500 points. The main factor behind this decline in neighbouring bourses was the exit poll which showed that the National Democratic Alliance (NDA) might win 230 seats in 545 lower house parliament.
According to a dealer, the share prices moved down in sympathy with the regional market as investors viewed if the BJP fails to form the government, the efforts made by Pakistan and India to improve relationship would suffer some jolt, and the process may slow down.
Ahmed Ashraf Sheikh of Akbarally Cassim, said the market reacted to the sliding of the Mumbai Stock Exchange, which lost almost 200 points on Tuesday, as investors feared that the ruling federal coalition would fall short of a majority in the Lok Sabha. The market is struck on the political front, as investors are jittery on the impact of elections will have on Pak-India relations.
He said there was significant badla shedding in the market. The badla value fell by 0.8 billion rupees. Major contribution was from PTCL, where badla fell by nearly 12 percent. The share is under pressure due to tariff reduction proposals, but it is expected the share price to recover very soon.
Hasnain Asghar of Aziz Fidahusein, said for lack of buyers' interest forced the weak-holders to reduce their stake because of increasing cost and dull market.
Institutions, however, cautiously accumulated main stocks, while the absence of support in the second tier stocks never allowed the index to stabilise and the market made low of 5339, losing 118 points. Technically, immediate support stays around 5333-5339, the breach of support will, however, force a level of 5250 while overhead resistance stays around 5403-5410.
The Index was down because of pressure sparked off by MCB and Adamjee because of rumours of court ruling followed by fall in DG Khan Cement and Nishat Mills.
OGDC suffered a decline of Rs 1.30 to Rs 66.50 on a volume of 42 million shares, Maple Leaf Cement gained 25 paisa to Rs 41.65 on a business of 37 million shares, Fauji Cement fell 50 paisa to Rs 15.65 on a trading of 31 million shares, and PTCL lost 50 paisa to Rs 43.25 on a turnover of 26 million shares, and Lucky Cement moved down to Rs 41 from Rs 42.15 as around 24 million shares changed hands.
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