Karachi share market witnessed panic selling due to prevailing law and order situation in the country on the second consecutive day as the benchmark KSE-100 index lost another 466.47 points to close at 13,193.37 points'' level on Thursday. The KSE-30 index declined by 645.90 points to close at 15,768.42 points level.
The market opened on positive note and the index hit 13,706.80 points intra-day high level, but the news of bomb blast in Hub area created uncertainty among the investors who offloaded their holdings. The prevailing uncertainty pushed the index in negative zone just after start of the market and at one time, the KSE-100 index reached 13,132.92 points'' level, down by 526.92 points. However, the index recovered some of its loses on the back of select buying at lower levels.
Trading activity remained thin as the ready market volume declined to 321.661 million shares as compared to 461.560 million shares traded a day earlier. The futures market turnover stood at 84.160 million shares against 85.662 million shares previously.
The overall market capitalisation significantly declined by Rs 141 billion to Rs 3.885 trillion. Trading took place in 394 scrips, out of which 344 scrips closed in negative column and only 34 scrips in positive column, while the value of 16 scrips remained unchanged.
Fauji Fertiliser Bin Qasim was the overall market volume leader with 22.093 million shares. However, the scrip declined by Rs 0.90 to close at Rs 44.90. Pak PTA Limited performed well and gained Rs 0.15 to close at Rs 6.65. Out of 10 top volume leaders, which was the only scrip, closing in positive column.
The E&P giant OGDC lost Rs 2.40 to close at Rs 117.55. Fauji Cement declined by Rs 0.90 to close at Rs 19.90. PTCL closed at Rs 56.50, down by Rs 2.80. Arif Habib Sec lost rupees seven to close at Rs 133.90. Dewan Salman closed at Rs 11.60, down by Rs 0.80.
In banking sector, Bank of Punjab (BoP), Bank Al Falah and National Bank of Pakistan (NBP) declined by Rs 4.95, Rs 2.65 and Rs 12.65 to close at Rs 94.55, Rs 52.30 and Rs 240.35 respectively. Wyeth Pak and Unilever were the highest losers, which lost Rs 96.50 and Rs 50 to close at Rs 2026.50 and Rs 2,350 respectively, while Jahangir Siddiqui Co and Attock Petroleum were the highest losers, which lost Rs 32.45 and Rs 25.55 to close at Rs 616.55 and Rs 485.45 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that the law and order situation and bomb blasts in Hub area and other parts of the country created panic selling at the local share market. Across the board selling pressure was witnessed as the local investors offloaded their holdings. Delay in announcement of petroleum policy was also another reason, which created uncertainty and invited buying in relevant stocks.
"Despite attractive values of stocks, investors remained sidelined due to bomb blast in Hub area. Rumours regarding foreign selling in NBP, Engro and OGDC and re-instatement of the Chief Justice Supreme Court and resultant political chaos were the main force behind market decline", said Kamran Naqvi, head of Equity Trade at Atlas Capital Markets.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that nervous opening pushed the value buyers on the back foot, as the law and order situation and other internal issues led to an aggressive sell off.
Although discounts did invite renewed buying, call of foreign selling never allowed the index to stabilise. Technically, index failed to honour a major support of 13,550-13,557, thereby pushing the immediate support around 12,977-13,983, while overhead resistance stays at 13,510-13,517.