KARACHI: The share market received a massive battering on Monday and plunged by 4.34 per cent or 426.83 points at 9,411.29 eroding Rs120bn from the market capital on panic-selling originating from all the quarters on security concerns.
‘It appears to be belated investor reaction to security concerns in the backdrop of military operation in Waziristan and threats of attacks by the terrorists in other major cities,’ analysts said. ‘The terror attack in Iran and heavy human loss further aggravated the situation,’ they added.
‘The bull rout was total,’ said a leading analyst and added that as the leading market rescuers kept to sidelines, the small investor prayed for God’s help to mitigate their financial losses.
However, it was not a single-day record loss in the benchmark index as it had dropped by 635.80 points or 4.57 per cent after the former president imposed emergency on Nov 3, 2007 and 696.25 points at 14,075.83 on Dec 27, 2007 after the assassination of Benazir Bhutto.
But the investor mood at the KSE reflected that from now onward sailing may not be that easy until law and order improves.
‘The snap withdrawal of foreign investors, of course, after having unloaded their long positions on the oil, banking and some leading auto sector scrips seemed to have caused major dents in the prevailing price structure as there were more sellers than buyers,’ some analysts said.
But they hoped that some of the basic fundamentals notably positive corporate announcements could halt panic selling in the subsequent sessions.
The fall was widespread and covered all sectors, with overvalued shares being on the main target list under the lead of Rafhan Maize, Wyeth Pakistan, Unilever Pakistan, Millat Tractors, PSO, Attock Petroleum, HinoPak and Mari Gas were the major losers, suffered a fall ranging from Rs16.64 to Rs95.47.
Most of the leading shares of the MNCs, also fell, notably among them being ICI Pakistan, Colgate Pakistan, Dawood Hercules, followed by leading oil shares including OGDC, Pakistan Oilfields and Pakistan Petroleum.
Some of the leading shares managed to put on modest gains, notable among them being Shield Corporation, Shahtaj Sugar, Sanofi-Aventis, Grays of Cambridge, Treet Corporation and Bata Pakistan, which posted gains ranging from Rs5.50 to Rs20.
Trading volume showed a modest decline at 212m shares from the previous 242m shares as losers forced a strong lead over the gainers at 311 to 75, with 19 shares holding on to the last levels.
The active list was topped by Arif Habib Securities, lower 60 paisa at Rs47.99 on 31m shares followed by Bank Alfalah, easy by 74 paisa at Rs14.07 on 27m shares, JS & Co, off Rs1.94 at Rs38 on 14m shares, NIB Bank, lower 21 paisa at Rs5.56 on 9m shares, Netsol, easy by nine paisa at Rs30.93 on 8m shares, PTCL, lower 97 paisa at Rs20.16 also on 8m shares and Pak PTA, easy by 32 paisa at Rs5.29 on 7m shares.
Fauji Fertiliser Bin Qasim followed them, off Rs1.26 at Rs26.49 on 6m shares, OGDC, sharply lower by Rs5.18 at Rs106.83 also on 6m shares and Azgard Nine, lower by Rs1.22 at Rs25.99 on 5m shares.
Bank Alfalah led the list of actives on the cleared list, easy by 76 paisa at Rs14.12 on 0.780m shares followed by Lucky Cement, off Rs3.85 at Rs73.34 on 0.328m shares and OGDC, lower by Rs4.95 on 0.246m shares.
Nishat Mills followed them, lower by Rs3.07 at Rs60.53 on 0.243m shares and D.G. Khan Cement, off Rs1.65 at Rs32.50 on 0.813m shares.
Japan Power led the list of actives, easy by 11 paisa at Rs1.76 on 0.173m shares, followed by Unity Modaraba by one paisa at Rs0.21 on 0.162m shares and by Dominion Stock Fund, steady by two paisa at Rs0.66 on 74,577 shares.