Stock market stays bearish

A bearish trend continued on the Karachi share market on Friday due to prevailing law and order situation and political uncertainty in the country. The KSE-100 index lost another 167.90 points and closed below the 14,000 psychological level at 13,915.04 points.
While the KSE-30 index declined by 226.15 points and settled at 16,421.80 points level. The market started on positive note and the index hit 14,155.75 points intra-day high, however, rumours regarding the President's resignation and bomb hoax at KSE created panic selling and the index declined by over 342 points to hit 13,740.62 points intra-day low.
Another rumour regarding foreign selling in oil sector and declining oil prices in the international market also invited selling in the relevant stocks. However late buying in some select scrips on lower levels supported the index to recover its intra-day losses partially and reach closing level.
The ready market volume increased to 256.090 million shares as compared to 245.491 million shares traded a day earlier. The futures market turnover surged to 47.806 million shares against previous 45.652 million shares.
The overall market capitalisation declined by Rs 47 billion to Rs 4.275 trillion. Trading took place in 346 scrips, out of which 215 scrips closed in negative and 100 in positive while the rates of 31 scrips remained unchanged.
BankIslami Pak was the star performer of the day with 15.119 million shares as it surged by Rs 0.10 to close at Rs 18.10 followed by Sui Northern Gas which gained Rs 0.20 to close at Rs 70 with a volume of 11.645 million shares. In cement sector, DG Khan gained Rs 2 to close at Rs 92. TRG Pakistan closed at the previous level of Rs 13.35.
Selling pressure was witnessed in E&P sector, where OGDC, PPL and POL declined by Rs 0.75, Rs 3.50 and Rs 12 to close at Rs 119.35, Rs 246.50 and Rs 321.95 respectively. Bosicor Pakistan shed Rs 0.25 to close at Rs 20.20. Prod. Mod 1st lost Rs 0.05 to close at Rs 3.50. NIB Bank closed at Rs 22.40, down by Rs 0.60.
Shezan International and Jahangir Siddiqui Co were the highest gainers with Rs 19.10 and Rs 10 to close at Rs 401.10 and Rs 1200 respectively while Nestle Pakistan and Siemens were the highest losers with Rs 85 and Rs 83 to close at Rs 1645 and Rs 1625 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that rumours created uncertainty among the market participants and they started offloading their holdings. The market remained under heavy selling pressure and the index dropped by 342 points. A rumour that SBP is increasing discount rates also affected the investor confidence. Bomb hoax at KSE created panic and uncertainty gripped the market. The decline in oil prices in international markets near $94 was another reason which invited selling in the relevant stocks as OGDC, PPL and POL closed in the negative zone.