KSE dips to 50-month low

KARACHI (January 20 2009): Heavy selling pressure was observed at Karachi share market on Monday and KSE-100 index plunged 231.18 points, or 4.19 percent, to close at 50-month low level of 5,280.75 points. The market opened on a negative note and the index hit 5,264.69 points day's low level. Trading volumes at the ready counter increased to 75.985 million shares as compared to 72.263 million shares traded on last Friday.

Market capitalisation declined by Rs 66 billion to Rs 1.677 trillion. Trading took place in 252 scrips, out of which 184 scrips closed in negative and 60 in positive while the value of eight scrips remained unchanged. Mybank was the volume leader with 7.803 million shares, losing Re. 0.91 to close at Rs 3.42. NIB Bank declined by Re. 0.13 to close at Rs 4.41 with 7.459 million shares. PTCL decreased by Re. 0.99 to close at Rs 13.01 with 7.045 million shares.

OGDC lost Rs 2.47 to close at Rs 46.93 with 6.635 million shares. Zeal Pak closed at Re. 0.48, up by Re. 0.01 with 4.941 million shares. TRG Pakistan gained Re. 0.10 to close at Rs 9.33 with 2.963 million shares. WorldCall Telecom increased by Re. 0.13 to close at Rs 3.51 with 2.896 million shares. Pak PTA surged by Re. 0.11 to close at Rs 2.08 with 2.292 million shares. Bosicor Pakistan closed at Rs 5.79, up by Re. 0.52 with 2.037 million shares. PPL lost Rs 5.17 to close at Rs 126.00 with 1.656 million shares.

Unilever Pakistan and Service Industries were the highest gainers and gained Rs 87.66 and Rs 1.77 to close at Rs 1963.91 and Rs 57.90 respectively. Wyeth Pakistan and Rafhan Maize were the worst losers and lost Rs 130.00 and Rs 96.98 to close at Rs 2470.00 and Rs 1842.72 respectively.

Hasnain Asghar Ali at Aziz Fidahusein Securities said that last week's bears' onslaught continued and desperate exit seekers paid no respect to the valuations, thus keeping the 'loss minimising' on priority. Foreign and local selling (mainly by corporate) never allowed the equities to settle. Cautious accumulation was, however, evident in the main board stocks, mainly the state fund and private sector institutions, thereby allowing the market breather in post-initial hours of trading. Fierce selling pushed the market in further red zone. As soon as the thirst of the accumulators quenched, the float swept the board and almost all the main board stocks witnessed lower locks.