The KSE-100 index after witnessing panic selling at over-inflated share price level breached through five important barriers in reverse gear ie 12,500, 12,400, 12,300, 12,200 and 12,100 respectively in a singly session and finally closed at 12,079.75 points level - shedding 432.33 points on Monday.
The absence of buyers created panic among the sellers, among them most were institutional. Majority selling was witnessed in CFS account that declined by Rs 5.5 billion.
On the other hand, the free float market capitalisation-based KSE-30 index witnessed historic decline since its launching from September 2006 and lost 596.74 points to close at 15,059.65 points level. Analysts were of the views that the market was overbought and a correction was due at the share market.
The market opened on strong negative point and bears gradually strengthen their position. Trading activity remained dull in the absence of buyers as the ready market volume declined to 255.380 million shares as compared with 343.005 million shares traded on Friday.
The futures market turnover increased to 66.629 million shares against 54.939 million shares changed hands previously. The overall market capitalisation declined by Rs 125 billion to Rs 3.517 trillion. Trading took place in 354 scrips out of which 272 scrips closed in negative column and only 62 scrips closed in positive column while the value of 20 scrips remained unchanged.
The E&P was the overall volume leader of the day with 30.687 million shares. However, the scrip lost Rs 5.30 to close at Rs 119.00 followed by Fauji Fertiliser Bin Qasim which declined by Rs 1.80 to close at Rs 34.45 with a volume of 17.443 million shares, while PPL decreased by Rs 12.95 to close at Rs 256.00.
In the cement sector, DG Khan Cement, Lucky Cement and Fauji Cement lost Rs 5.15, Rs 5.30 and Re 1.00 to close at Rs 97.90, Rs 101.50, and Rs 19.05, respectively. The profit-taking was also witnessed in the banking sector, as BoP, Askari Bank, NBP and Bank Al Falah declined by Rs 5.35, Rs 4.65, Rs 12.50 and Rs 2.90 respectively.
Al Ghazi and Fazal Textile were the star performers which gained Rs 10.40 and Rs 8.25 to close at Rs 241.90 and Rs 174.15 respectively, while Fateh Textile and POL were the highest losers which lost Rs 17.00 and Rs 16.10 to close at Rs 550.00 and Rs 341.10 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities, said the market witnessed correction after the March results rally. The Securities and Exchange Commission of Pakistan (SECP) and the board of directors of the Karachi Stock Exchange (KSE) in their meeting held a few days back failed to increase CFS cap from its existing Rs 55 billion level, which was also a negative sign for investors.
The prime minister's statement regarding emergency was also a negative sign which created rumours and analysis over the future of foreign investment and institutional support. Rumours were rife over expected delay in the privatisation of PSO, PPL, SNGPL, SSGC. Institutions prepared profit taking in overvalued scrips, in banking, oil and cement stocks. Overleveraging remained a key concern for the market.
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