Rupee low value drags stock market down

LAHORE - The historic decline in rupee value against the US dollar changed the market trend on Tuesday, pushing it as low as 9,848 points. Market first went up in



reaction of the positive results of SHEL, JOVC and PSO but later on the prevailing political scenario and the further depreciation of the rupee versus dollar placed a



negative impact on the bourse, changing the whole scenario and KSE 100-index fell 208.28 points to settle at 9963.58 points - almost 115 points above its day low.

Dealers said that three days badla also played role in this decline, eroding all the earlier gains. They added that though market closed in minus column but



under-tone was not weak. Economic downturn and political uncertainty also caused downslide. Analysts hope better financial results and settlement of President



Impeachment move in one way or the other can help the market stage major correction in near future.

Traded scrips were 277 and out of those 74 closed in plus and 192 in minus column while 11 remained unchanged. Volumes came down drastically and only 81.834



million shares were traded.

Financial results of JOVC and SHEL were above market expectations which took these scrips to upper lock. JOVC declared 10 per cent bonus after suffering loss of Rs



18.79 per shares. SHEL declared 400 per cent cash dividend and 25 per cent bonus from Rs 93.76 per share earning. PSO earned Rs 81.94 per shares and gave 125 per



cent cash dividend.

Earlier, market opened in continuation of upward correction 46.36 points plus at 10218.22 points to resume the trend. Market resuming upwards drive went up to



10250.50 points but failed to keep the drive intact. After hitting today high in initial trading hour market started sliding down and soon lost all the gains made earlier.



After entering red territory market thrice tried to come out of red and in one move touched green but failed to resume upwards move. With passage of time selling



intensified and index went down to 9848.76 points low in last hour of trading.

Free float index opened with plus sign but closed with minus after hitting 11656.85 points high and 11048.60 points low at 11194.24 points. Index lost 324.32 points in



today trading. All shares index lost 143.14 points and closed at 7170.10 points.

NBP after long time took top position in volumes with traded volumes of 6.183 million shares and after moving on both side of the fence closed limit down minus Rs



5.70. While more than one dozen scrips closed limit down JOVC, SGLL, PINL and SHEL in this bearish market closed limit up.

At Lahore Stock Exchange market at day end closed 97.53 points minus at 3162.46 points. From 88 traded scrips 6 closed with plus signs against 44 minus closings



while 38 scrips kept yesterday closings. Volumes tumbled down to 8.719 million shares.