Karachi share market on Tuesday witnessed worst declined of the year as the benchmark KSE-100 index lost 447.55 points to close at 12,244.62 points' level due to prevailing political uncertainty in the country. The KSE-30 index declined by 522.46 points and closed at 14,644.77 points' level.
The overall market capitalisation declined by Rs 130 billion and stood at Rs 3.584 trillion. The start of the market was positive, but the news regarding delay in privatisation of Pakistan State Oil (PSO) and prevailing uncertainty on political front created panic selling, which pushed the index in negative territory. The bears gradually strengthened their positions and at one time the index reached 12,188.48 points intra-day low level.
The market witnessed dull trading activity and despite some increase, the ready market volume remained thin at 152.224 million shares as compared to 123.201 million shares traded a day earlier. The futures market turnover, however, increased to 51.366 million shares against 29.329 million shares previously. Trading took place in 365 scrips, out of which 305 scrips closed in negative and only 44 in positive, while the value of 16 scrips remained unchanged.
Oil and Gas Development Company (OGDC) was the overall market volume leader with 11.357 million shares, but the scrip lost Rs 4.40 to close at Rs 111. Bosicor Pakistan was the second highest volume leader with 10.431 million shares and closed at Rs 17.80, with a net loss of rupee one. TRG Pakistan declined by Rs 0.70 to close at Rs 11.70.
In banking sector, Bank of Punjab (BoP), National Bank of Pakistan (NBP), Bank Al Falah and Bankislami Pak lost Rs 4.25, Rs 10, Rs 2.45 and rupee one to close at Rs 86.85, Rs 224, Rs 46.65 and Rs 12.25 respectively.
Pakistan Telecommunication Company Limited (PTCL) declined by Rs 2.50 to close at Rs 47.95, Fauji Fertiliser Bin Qasim lost Rs 2.15 to close at Rs 41.30 and Arif Habib Sec closed at Rs 121.15, with a net loss of Rs 6.35.
Siemens and Fazal Textile were the highest gainers with Rs 30 and Rs 9.10 gains to close at Rs 1,599 and Rs 369 respectively, while Unilever and Jahangir Siddiqui Co were the highest losers. They lost Rs 61.85 and Rs 40 to close at Rs 2,233.10 and Rs 760.50 respectively.
Ahsan Mehnati at Shehzad Chamdia Securities said that rumours regarding imposition of emergency or martial law in the country created uncertainty among the market participants and a situation of panic selling prevailed during the whole session.
The same trend of uncertainty was also witnessed in the international market, which also affected the local market negatively. Declining oil prices in the international market also invited selling in relevant stocks.
The news regarding delay in PSO's privatisation was also a negative sign, which created selling pressure mainly in oil-related stocks. The massive outflow of portfolio investment from the country's equity market showed that foreign investors also took cautious stance and opted for profit taking on available margins.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the fund thirsty market chanted "show me the money," but unfortunately all in vain, the liquid individuals and institutions seemed to have gone in hibernation as most of all were waiting for final move.
The values kept on trimming with extremely low turnover, thus depicting desperation of the sellers, most probably those who felt that making an exit even at these levels might be safe as it was well said "better safe than sorry". Absence of buying interest, however, forced the onslaught to continue the intensity certainly increased, and in the round the index was down by almost 505 points or 3.97 percent, with almost all the blue chip stocks available at extreme discounts, day end short covering and cautious value buying, however, allowed the index a minor recovery. Technically, the index will continue to find support around 11,970-11,977, while overhead resistance stayed at 12,527-12,533.