Karachi share market on Monday witnessed selling pressure due to investors' concerns over reports on direct intervention of the US army in Pakistan and declining oil prices in the international market. The market participant also expressed their concerns over report of State Bank of Pakistan (SBP) on economic performance, highlighting concerns over inflation, deficits and export shortfall, analysts said.
The KSE-100 index lost 96.49 points to close at 14,163.11 points' level on Monday, while the KSE-30 index downed by 185.73 points to close at 16,703.86 points' level.
The market started on positive note and the KSE-100 index hit 14,280 points intra-day high, but it could not continue its upward trend and selling pressure pushed the index in negative zone, which remained in negative till the closing with 14,090.47 points intra-day low level. However, buying in some select stocks at lower levels supported the index to close well above its intra-day low level.
Trading activity remained dull as the ready market volume declined to 245.216 million shares as compared to 288.081 million shares traded on Friday. The futures market turnover also declined and stood at 35.365 million shares against 54.198 million shares previously.
The overall market capitalisation declined by Rs 28 billion to Rs 4.324 trillion. Trading took place in 374 scrips, out of which 235 scrips closed in negative and 107 in positive, while the value of 32 scrips remained unchanged. TRG Pakistan was the overall volume leader with 21.987 million shares, but the scrip declined by Rs 0.60 to close at Rs 13.85.
In banking sector, NIB Bank surged by Rs 1.10 to close at Rs 23.15, while the National Bank of Pakistan (NBP) declined by rupees four to close at Rs 229.50. A mixed trend was witnessed in cement sector, as DG Khan Cement gained Rs 0.45 to close at Rs 94.45 and Lucky Cement lost Rs 0.20 to close at Rs 118.50. Bosicor Pakistan increased by Rs 0.40 to close at Rs 21 and Prud. Mod. 1st gained Rs 0.35 to close at Rs 4.25.
While Oil and Gas Development Company (OGDC) declined by Rs 0.50 to close at Rs 120.95, Arif Habib Sec lost Rs 1.80 to close at Rs 170.55 and JOV & Co decreased by Rs 7.55 to close at Rs 143.95.
Jahangir Siddiqui Co and Siemens were the highest gainers, with Rs 53.10 and Rs 44 gains to close at Rs 1,115.55 and Rs 1,736 respectively, while Pak Services and Hinopak Motor were the biggest losers. They lost Rs 27.40 and Rs 18 to close at Rs 537.50 and Rs 582 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that selling was witnessed at the share market post-SBP Quarterly Report on economic performance, highlighting concerns over inflation, deficits and export shortfall.
The US media reports on direct intervention of the US military in Pakistan was also negative sign for investors and the market participants expressed concern over this report, he said, adding the recent decline in oil prices in the international market to 97 dollars per barrel invited selling in the relevant stocks.
Jibran Jamal at Live Securities said that the market portrayed negative sentiment, which was mainly driven by the SBP's report, indicating non-achievement of economic targets. "Although the primary concern of the local investors is the law and order situation until the forthcoming elections, the impact of the SBP's economic report cannot be discounted", he added. Foreign portfolio investment, which had taken another fresh tumble of 4.7 million dollars to stand at 32.94 million dollars (as on Jan4) and once again negative impact could not be ruled out, he added.
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