Investors' fear over a fragile law and order situation in the city created panic selling at the Karachi share market on Wednesday and the KSE-100 index registered a heavy decline of 284.61 points to close at 11,941.72 points. The market opened on a strong negative note and the index hit 11,916.41 points intra-day low level and remained in red throughout the session.
Trading volumes at ready counter shot up to 46.108 million shares as compared to 14.941 million shares traded on Tuesday. Market capitalisation declined by Rs 74 billion to Rs 3.156 trillion. Of 312 active scrips, 207 closed in negative and 32 in positive, while the values of 73 stocks remained unchanged. Jahangir Siddiqui Co was the volume leader with 3.200 million shares. However, it lost Re 0.02 to close at Rs 6.71. Lotte Pakistan PTA decreased by Re 0.35 to close at Rs 11.76 with 2.778 million shares. NBP declined by Rs 2.56 to close at Rs 50.89 with 2.389 million shares.
Fauji Fertiliser Bin Qasim, Fauji Fertiliser Co and Engro Corp lost Re 0.71, Rs 3.28 and Rs 3.76 respectively to close at Rs 46.10, Rs 159.57 and Rs 138.02 with 2.316 million shares, 1.640 million shares and 1.612 million shares. TRG lost Re 0.01 to close at Rs 2.24 with 2.260 million shares. PTCL decreased by Re 0.39 to close at Rs 11.91 with 2.200 million shares. Hub Power Co lost Re 0.59 to close at Rs 39.04 with 2.139 million shares. Byco Petroleum decreased by Re 0.32 to close at Rs 8.35 with 1.783 million shares.
Bata (Pak) and EFU Life were highest gainers, increasing by Rs 10.00 and Rs 3.24 to close at Rs 650.00 and Rs 68.51 respectively, while Siemens Pak and Unilever Pak were worst losers, declining by Rs 51.07 and Rs 32.76 to close at Rs 985.01 and Rs 5964.07 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the choked local equities, taking lead from tumbling international equity markets, witnessed an extreme bearish trading session. Rising political temperatures, along with various statements suggesting tough law and order situation, undoubtedly aggravated the sell-off that was duly intensified due to absence of buyers on intervals.
He said that the sell-off was mainly witnessed in the high priced stocks, unable to sustain the high valuations due to curtailed local strength and absence of follow-up support. These stocks were also facing rising input cost and declining local and export demand, gas curtailment and high debt portfolio, along with those directly or indirectly hit by the ballooning circular debt, low volume certainly magnified the sell-off.