Karachi share market witnessed heavy selling pressure on Wednesday due to declining oil prices in the international market, political uncertainty and exposure call on few brokers. The KSE-100 index lost 265.66 points to close at 14,260.86 points'' level, while the KSE-30 index witnessed a heavy decline of 418.55 points to close at 17,105.87 points level.
The index, after initial recovery of 92 points, witnessed heavy selling pressure throughout the session and at one time the index reached 14,197.86 points intra-day low level.
The ready market volume declined to 360.932 million shares as compared to 364.076 million shares traded a day earlier. The futures market turnover, however, increased to 92.090 million shares against 75.116 million shares previously. The overall market capitalisation declined by Rs 77 billion to Rs 4.346 trillion. Trading took place in 397 scrips, out of which 240 scrips closed in negative and 133 in positive, while the value of 24 scrips remained unchanged.
Bank Al Falah was the star performer of the day with 24.591 million shares and the scrip surged by Rs 2.50 to close at Rs 61.70. Bank Al Falah was the only scrip in top 10 volume leaders, which closed in positive. Bank of Punjab (BoP) and NIB Bank lost Rs 0.40 and Rs 1.20 to close at Rs 103.70 and Rs 22.90 respectively.
Arif Habib Sec witnessed heavy selling pressure and declined by Rs 8.85 to close at Rs 172.70. The E&P giant, Oil and Gas Development Company (OGDC) lost Rs 2.60 to close at Rs 123.50 and TRG Pakistan declined by Rs 0.20 to close at Rs 13.75.
In fertiliser sector, Fauji Fertiliser Bin Qasim and Engro Chemical decreased by Rs 0.40 and Rs 10.60 to close at Rs 46.20 and Rs 273.50 respectively. In cement sector, DG Khan Cement and Lucky Cement lost Rs 5.50 and Rs 6.65 to close at Rs 105.45 and Rs 127.05 respectively.
Siemens and Jahangir Siddiqui Co were the highest gainers, with Rs 93 and Rs 29.65 gains to close at Rs 1,971 and Rs 623.30 respectively, while National Refinery and Adamjee Insurance were the highest losers. They lost Rs 20.50 and Rs 20.25 to close at Rs 407.50 and Rs 384.85 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that uncertainty of political front and rumours regarding imposition of martial law in the country created panic selling at the share market on Wednesday. The exposure call on few brokers was also a negative news, which invited heavy selling pressure at the local bourse. The declining oil prices in the international market also invited fresh selling in relevant stocks.
A foreign brokerage house report, in which some banking sector stocks were downgraded, was also a negative news and invited heavy selling in relevant stocks. Hasnain Asghar Ali at Aziz Fidahusein Securities said that adjustment continued throughout the session despite an initially recovery of 92 points. The internal issue that had annoyed the big players was the main reason of the massive onslaught.
Besides, anticipations and expectations on the political scene added to the misery of the weak holders, which resulted in the off-loading. Growing uncertainty regarding upcoming elections and the threat that law and order situation could further deteriorate seemed to have started inviting foreign float, although the local liquidity could digest the float if made available.
However, intense selling had scared away the prospective buyers, he said. Keeping in view the upcoming results mainly in oil and gas exploration and banking stocks, the tempting levels have started emerging. Technically, the index will continue to invite immediate support around 14,133-14,140, while major support stays at 13,970-13,977 and over head resistance stayed at 14,550-14,557.