Bearish trend continued at the Karachi share market on Wednesday and KSE-100 index lost another 128.29 points to close at 11,276.66 points level on the back of political uncertainty in the country. The KSE-30 index also shed 211.99 points, closing at 14,204.11 points level.
The market witnessed dull trading and the ready market volume decreased to 173.105 million shares as compared to 240.866 million shares and the futures market turnover declined to 70.240 million shares against 72.039 million shares traded a day earlier.
Market capitalisation declined by Rs 34 billion to Rs 3.077 trillion. Trading took place in 351 scrips, out of which 203 closed in negative column and 103 landed in positive column, while the value of 45 scrips remained unchanged.
CFS value decreased by 0.32 percent to Rs 45.89 billion as compared with Tuesday's Rs 46.04 billion. Five highest CFS scrips were NBP, OGDC, PPL, POL and BoP.
Lucky Cement was the market leader with 24.653 million shares, losing Rs 1.10 and closing at Rs 78.60. It was followed by Fauji Fertiliser Bin Qasim, which lost Rs 0.50 to close at Rs 32.05, 16.100 million shares trading.
D G Khan and Maple Leaf closed at Rs 88.85 and Rs 19.85, down by Rs 1.15 and Rs 0.35, respectively, while Pakistan Cement gained Rs 0.05 to close at Rs 11.40.
Picic lost Rs 1.50 to close at Rs 68.00 and Bank Al Falah gained Rs 0.50 to close at Rs 58.70. PPL closed at Rs 250.00, down by Rs 8.00, OGDC closed at Rs 116.40, down by Rs 1.80 while Kot Addu Power gained Rs 0.55 to close at Rs 56.00.
Sanofi-Aventis and Hinopak Motor were the highest gainers with Rs 10.00 and Rs 9.40 gains to close at Rs 235.00 and Rs 198.30 respectively. Unilever and Lakson Tobacco were the highest losers, with Rs 18.00 and Rs 11.00 to close at Rs 2007.00 and Rs 648.00 respectively.
Ahsan Mehanti, CEO of Shehzad Chamdia Securities, said that the main reasons for negative close were political unrest in the country, oil prices at lower level in the international market, December earning announcement session end and global stock markets tumble as around 5 percent market capitalisation of KSE is in foreign funds.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the bearish spell continued, although nervous buyers did make short visits, as rate temptation in the main stocks did offer resistance to the bears. Due to range-bound movement, the index continued the declining trend and closed with a net loss of 124 points.
Many debated that lack of interest was due to the ongoing events in the country, while some said that the trend was inherited from the international markets. There was another view that some developments had taken place, while reduction in turnover was being noticed from the past week.
After a hefty recovery, led by concessions in CLN and commitment of institutional margins, the availability of main stocks at extraordinary discounts and the oversold situation allowed the market participants to take a chance. Although fundamentals are still intact, the liquid participants are still waiting for bargains as the new regime has increased the cash requirement in the market that in turn forced the market participants to trade well below their potential.
Lack of buyers will therefore create further unrest among the weak holders as the range-bound movement and heat of financing will direct the float to the main stream on one side and on the other side changing environment will keep the cautious waiting.
Technically, the index will continue to find major support around 11,150-11,157, while immediate resistance stays at 11,610-11,617. Value buying is, however, likely to surface, while growing interest in cement and fertiliser stocks can offer trading opportunities.
Increase in international oil prices can invite fresh buyers in the oil and gas exploration stocks. Opportunities are therefore available. Developments on institutional margin and upcoming federal budget can be looked as driving forces.
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