Pakistan Business News
International Business News
KARACHI: On Wednesday, Shares fell like ninepins on the stock market, with the KSE-100 index taking another deep plunge into the red of 197.45 points to settle at 25686.93.
It marked sixth straight sessions of a pull back with collective loss of 990 points or 3.71 per cent. The overwhelming concern on the mind of investors was ‘uncertainty’ over the progress of talks with the Taliban. A stock broker remarked: “It is scary. The bulls are retreating due to ‘uncertainty’, as it is worse than bad news.” Most market participants concurred that the market was looking for a direction and until things cleared up on the security front, it was difficult to draw up a future strategy. On Wednesday, mutual funds were again the major sellers of $1.45 million worth shares. Companies picked up selected stocks at dips, while the individuals for the first time, moved to the sidelines. Foreign investors were luckily for the market taking things in stride as they made net purchases of $0.63m worth stocks on Wednesday. As punters and day traders stood aside, the volume fell and trading frenzy in the third tier stocks dissipated. There were a few exceptions, such as TRG Pakistan, up by 83 paisa to Rs11.70, recording the highest turnover at 20 million shares or 10pc of the market turnover. Two stocks that proved wet blanket on an already damp market were the biggest Independent Power Producers: Hubco and Kapco. Both closed at their ‘lower circuits’, as investors were unhappy over the lower than expected December earnings announcements. Samar Iqbal, AVP Equity Sales at Topline Securities, stated that due to prevailing uncertainty on the ongoing talks between Government and TTP, market continued to correct itself. United Bank result was slightly above market expectations.