KSE nosedives amid SWA operation, foreign divestment

LAHORE - Instead of touching the psychological barrier of 10,000, the Karachi Stock Exchange shed a massive 687.15 points to close at 9,150.85 points in current week compared with 9,838 points last week. The average turnover remained 205.284 million shares as compared to 192.190 million shares of the previous week reflecting a significant upward trend of 13.094 million shares.
On the other hand, the junior KSE 30-index shed 293.34 points during the week to close at 9,669.62 compared to 186.88 points gained and closed at 9,962.96 points of the previous week.
Bears overwhelmed the market almost the whole business week except Tuesday when it gained 157 points on the hope of SBP revision policy. The South Waziristan Agency military operation was the main cause local investors remained sideline and waited for the good days while foreign investors also lost their hope and interest and preferred to off-load. Observing foreign investors policy, local investors also followed their footsteps and sell off their withholdings.
With this, on the first day of the business week, investors at the Karachi Stock Exchange lost over Rs 120 billion amid massive decline in the prices of almost all of the blue-chip stocks.
It is important to note that Monday’s ‘426 points’ so-called correction of the local bourse is the worst slump this year so far, while only 75 companies managed to remain in green zone after heavy selling pressure grabbed the market from its opening. The total trading value of the stock exchange fell to Rs 10.288 billion as compared to previous session’s Rs 12.924 billion.
Karachi stock market capitalisation decreased to Rs 2.728tr on Monday as compared to last trading session’s Rs 2.848tr on Friday losing over Rs195 billion capital of investors in just one week.