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Tension over Indo-Pak relations claims 293 points at KSE

KARACHI: The Karachi stock market continued to witness selling pressure on Tuesday on account of uncertainty over Pakistan and India relations, which propelled investors to offload their holdings, analysts said.

Traders said besides selling activities, the fear of broker defaults in payment of mark up to market losses remained a major concern for investors also.

The Karachi Stock Exchange (KSE) 100-share shed a massive 293.31 points as it closed at 6,924.15 points as compared with 7,217.46 points traded in the previous session. The KSE 30 index also lost 376.32 points and closed at 6,919.24 points compared to 7,295.56 points of the previous session. KMI 30 index declined by 400.89 points to close at 8,044.33 points as against 8,445.22 points of the previous session.

The market turnover went down up by 4.57 percent and traded 26.72 million shares as compared to previous session’s 28.00 million shares. The overall market capitalisation decreased by 3.83 percent and closed at Rs 2.155 trillion as compared with Rs 2.241 trillion traded in the previous session. Out of 182 companies, 17 closed in positive zone while 165 in negative.

Analysts said unconfirmed reports of defaults and likely repercussions have adversely effected the trading even in the penny stocks as the week started with various interpretations and apprehensions of court orders thus impacting the turnover, besides forcing the buyers in the main board stocks to change the strategy that was constructed on unfreezing, to buy on the sixth and seventh decline of 5 percent.

Amid confusion and complexities arising out of various interpretations of court’s order, the index continued southward march with off market, maintaining the distance from regular market and the rates quoted in off market registered a massive decline from the high attained in the previous years. They further said that dismissal of the court’s appeal against CFS finances and liquidity crunch is prevailing in the economy affecting institutional and retail investors’ sentiment negatively.

Maple Leaf Cement was the volume leader in the share market with 5.39 million shares as it closed at Rs 2.73 after opening at Rs 3.59, shedding 86 paisas. NIB Bank traded 3.61 million shares as it closed at Rs 3.64 after opening at Rs 4.23 losing 59 paisas. Zeal Pak traded 2.67 million shares as it closed at 47 paisas after opening at 60 paisas losing 13 paisas. TRG Pakistan traded 2.08 million shares as it closed at Rs 1.62 after opening at Rs 1.97 losing 35 paisas. Arif Habib Bank traded 1.73 million shares as it closed at Rs 4.00 after opening at Rs 4.97 losing 97 paisas.

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