Bearish trend continued at the Karachi share market on Wednesday and the KSE-100 index lost another 34.67 points to close at the level of 11,794.57 points. Initially the investors took fresh position on attractive low levels and after positive opening the index hit 11,919.26 points intra-day high level, up 90.02 points.
However the momentum could not continue due to absence of follow up support and the investors opted for selling that forced the index into negative zone at 11,703.86 points intra-day low, down 125.38 points. Trading activities also shrank due to investors lack of interest, as the volumes at ready counter declined to 107.940 million shares, as compared to 135.072 million shares traded on Tuesday.
The overall market capitalisation declined by Rs 10 billion to stand at Rs 3.160 trillion. Out of the 342 active scrips, 143 closed in negative and 105 in positive, while the value of 94 scrips remained unchanged. Lafarge Pakistan was the volume leader with 14.482 million shares, however lost Re 0.08 to close at Rs 3.25. Nishat (Chunian) declined by Re 0.26 to close at Rs 28.03 with 13.097 million shares.
Fresh buying was seen in the cement sector, as Fauji Fertiliser Bin Qasim and Engro Corp gained Re 0.43 and Rs 4.12 to close at Rs 39.00 and Rs 193.88 with 6.769 million shares and 5.105 million shares respectively, however Fauji Fertiliser Co (FFC) declined by Rs 2.22 to close at Rs 128.39 with 3.743 million shares. Lotte Pakistan PTA decreased by Re 0.09 to close at Rs 15.69 with 6.667 million shares. Descon Oxychem lost Re 0.64 to close at Rs 8.55 with 3.898 million shares.
BoP inched up by Re 0.06 to close at Rs 6.98 with 3.591 million shares. Hub Power Co lost Re 0.03 to close at Rs 39.91 with 3.418 million shares. Byco Petroleum gained Re 0.40 to close at Rs 9.39 with 3.105 million shares. Nestle Pakistan and Unilever Pak were the highest gainers increasing by Rs 49.64 and Rs 32.44 to close at Rs 3499.98 and Rs 4956.75, respectively while Millat Tractors and Lakson Tobacco were the worst losers declining by Rs 14.20 and Rs 9.95 to close at Rs 516.69 and Rs 245.19, respectively.
Ahsan Mehanti at Arif Habib Investments said that bearish activity was witnessed after government introduced Rs 53 billion additional taxes on income, imports, agriculture to restrict current account deficit on Tuesday. He said that the successful talks with government coalition partner MQM and recovery in Asian capital markets failed to change investor sentiment. Recovery in global commodity prices, MTS leverage product availability and renewed institutional interest supported the market initially but investors remained cautious on limited foreign interest ahead of monetary policy announcement next week.