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KSE exhibits worst performance

The floored Karachi bourse exhibited the worst performance on Tuesday, as it witnessed trade of zero shares in the first 180 minutes of the day session. Therefore, historically low turnover in as many as seven active companies were the other two new records of history at KSE.Moreover, foreign portfolio investors disinvested huge and over $2 million in a single session at local bourses, according to NCCPL data.KSE All-share Index fractionally fall by 0.18 point and ended at 6,639.18 points.
Earlier, it moved either side of the fence by 0.20 point during the session.While, all the other three parallel running indices remained stagnant, as KSE 100-share Index at 9,184.09 points; KSE 30-share Index at 9,981.93 points; and KMI 30-share Index at 11,224.18 points, throughout session.Dealers confirmed that investors have traded zero shares till 12noon in the market since the pre-opening of the day session at 9:30am, which is a new record.Therefore, market generated a turnover of mere 19,660 shares in second half of the session, which was all time low. Amid, out of total seven active securities on board, three fell in red against two settled in green. Remaining two shares closed with no change in their prices.In line with this, the overall market further fell by Rs484 million and stands at Rs2.826 trillion.Analysts were of the view that the end Friends of Pakistan meet in Abu Dhabi without announcing any immediate relief to the local economy created doubts in investors mind over quick recovery in the economy.
Therefore, investors went on far distance from market and wait for any positive announcements. S. Kashif Mustafa at ECL Research said that Pakistan’s economic situation has become precarious, as Friends of Pakistan seem reluctant to support the country due to the weak economic conditions.However, lending from IMF will instigate hope for the forum to extend its support through investments in the country by accepting the comprehensive road map to put Pakistan back on its feet, shaken by the financial crisis, he further said and added, on the equity market front investors were advised to stay sidelined and watch-out for plunges after the removal of the flooring.
Ahsan Mehanti at Shahzad Chamdia Securities said that there was no official update on Rs50 billion market bail-out package, which the government has pledged to introduce in market about a month back. Another strange situation that has developed over the night was pledging of investors’ shares with banks by some brokerage houses to acquire bank financing against. This situation has again earned bad name for stocks market brokers, analysts added.Sindh High Court, therefore, has issued stay order against pledging clients’ shares by brokers and availing bank financing against that.Highest volumes were witnessed in Southern Electric at nine thousand closing at Rs3.62 with a gain of one paisa, followed by Gharibwal Cement at six thousand closing at Rs16.38 with a loss of 28 paisa, Habib-ADM at three thousand closing at Rs9.69 with a loss of 30 paisa, Mohammad Farooq at five hundred closing at Rs2 with a loss of one paisa and Hayder Const at five hundred closing at Rs1.05 with a gain of two paisa.

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