Selling further erodes major stocks value

LAHORE - Political uncertainty continued to haunt the equity market where selling pressure on the fourth consecutive day eroded value of blue chip stocks further.

The Karachi Stock Exchange benchmark KSE 100-Index opened in red zone with negative 136.31 points and at ended up the day at 9,813.66 level, losing another 180.15 points. The KSE 30-index suffered a loss of 303.45 points to close at 11,051.64 levels while, All Shares Index settled at 7,068.04, down by 126.99 points.

Trading activity was worst as compared to the last trading session as the Ready market volume stands at 86.616 million as compared to last trading session of 103.350 million shares. Future market volume, however, increased and stood at 18.067 million shares as compared to last trading session of 14.827 million.

Lingering judiciary issue continued to cast negative shadow on the equity market. Analysts are of opinion that this trend will continue till the issue is resolved. They said that keeping the political uncertainty in mind investors will like not to carry open position during the week. Hence market can witness selling pressure on coming days.

Earlier, the market in continuation of last day bearish trend opened in red area on negative note. After loosing some more points it started recovering and around midday reclaiming all the earlier losses entered in plus column. Continuing upward drive it went up but failed to stay there and came back in minus column. With the passage of time bear got tighten their hold and market went down in minus column. Market has lost almost all the gains made after President resignation.

Experts from leading brokerage houses said that lack of interest from investors was affecting the stock market.

The market capitalization was also eroded by Rs 55 billion to Rs 3.061 trillion. Total trades decreases to 74,716 as compared to last trading session 76,811 66 companies advanced, 199 declined and 9 remained unchanged. Highest volumes were witnessed in NBP at 6.713 million to close at Rs 103.06 with a loss of Rs 5.42 followed by OGDC at 5.994 million to close at Rs 108.50 with a gain of 0.30 and AHSL at 4.83 million shares to close at Rs 104 with a loss of Rs 4.65. DG Khan Cement 3.151 million shares and Al-Abbass Cement 3.006 million shares. Fateh Tex recorded the highest increase of Rs 23.50 to 598.50 followed by IGI Insurance which moved up by 7.92 to 166.47 while Jahangir Siddiqui Co dipped by Rs 19.38 to 368.22 and Pak Engg went down by 16.98 to 322.69.

Trend forecasting oscillators are currently bearish on KSE-100 index. KSE-100 Index is currently 11.1 per cent below its 200-day moving average and is displaying a downward trend.