The KSE-100 index on Monday registered a heavy decline of 219.40 points and closed at the level of 13,077.72 points due to selling by local investors and institutions. Initially, the market witnessed some support on the back of investors' interest in some selective stocks and the index hit 13,329.19 points intra-day high level.
However, the momentum could not continue as the local investors and institutions opted for profit taking and the index dropped into negative zone at 13,042.67 points intra-day low level. Trading activities also reduced as the volumes at ready counter declined to 256.86 million shares as compared to 426.213 million shares traded on last trading session. Total market capitalisation declined by Rs 61 billion to stand at Rs 3.381 trillion. Of the total 384 active stocks, 234 closed in negative and 77 in positive while the value of 73 stocks remained unchanged.
Jahangir Siddiqui Co was the volume leader with 21.331 million shares, however lost Rupee one to close at Rs 17.39 followed by Lafarge Pakistan that closed at Rs 3.59, down Re 0.28 with 17.654 million shares. Dewan Cement inched up by Re 0.16 to close at Rs 4.22 with 17.309 million shares while Fauji Cement and DG Khan Cement declined by Re 0.26 and Re 0.46 to close at Rs 5.18 and Rs 30.30 with 8.055 million shares and 7.827 million shares respectively. KESC' gains decreased by Re 0.54 to close at Rs 2.83 with 11.805 million shares.
In the banking sector, JS Bank and BoP declined by Re 0.47 and Re 0.93 to close at Rs 5.82 and Rs 7.99 with 10.25 million shares and 8.471 million shares respectively. WorldCall Telecom gained Re 0.22 to close at Rs 2.4 with 10.031 million shares. Azgard Nine lost Re 0.69 to close at Rs 6.25 with 7.95 million shares.
Siemens Pakistan and Unilever Pak were the highest gainers increasing by Rs 35.89 and Rs 34.9 to close at Rs 789 and Rs 5,750 respectively while Nestle Pakistan and Rafhan Maize were the worst losers declining by Rs 137.83 and Rs 89.34 to close at Rs 4262.17 and Rs 2,750 respectively.
Hasnain Asghar Ali, head of equity sales at Invisor Securities said the negative opening, due to prolonged stagnation and corporate off-loading in front line stocks, both from local and off-shore corridors as was witnessed in previous sessions, aggravated further led by Engro on news of gas cut, while low priced stocks gaining on mere volumetric activity faced, and on wild and unconfirmed news flows faced massive sell-off, thus pushing the benchmark in deep red zone, wherein various low priced stocks and holding companies even out-performed the benchmark by declining more than five percent from day's high.
With April 1, the date committed for implementation of infrastructural changes in CGT mechanism to facilitate the investors around the corner and official notification still not in sight has indeed fuelled the waves of uncertainty, along with vigorous off-loading from off-shore corridors in back to back sessions, kept the bears in command, although various front liners on their healthy growth in earnings and payouts and the strategic placements that allows them to stay away from the visible threats of the economy continued to invite cautious accumulation, he said.
He said the active traders and punters minting money in past few sessions found themselves in an awkward situation, and looked unsettled, due to absence of concrete evidence of turnaround as was being pitched in various low priced and penny stocks, wherein some dumped the holdings at available rates while other opted to test their shock absorbers, while the steep decline marked the bearish session.