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Deteriorating law, order situation hauls KSE index 73.21 pts down


The Karachi stock market closed lower on Thursday as the deteriorating security situation in Buner, Dir and subsequent killing of Sufi Mohammed’s son by Pakistan Army’s shelling propelled investors to offload their holdings.

The Karachi Stock Exchange (KSE) 100-share index lost 73.21 points or 1.02 percent to close at 7,125.66 points as compared to 7,198.87 points of the previous session. The KSE 30-share index shed 86.33 points and closed at 7,561.36 points as compared with 7,647.69 points. The KMI 30 index also decreased by 122.13 points to close at 10,034.78 points as against 10,156.91 points.

Analysts said another reason for the sluggish trend was the May 12 strike calls by ANP and MQM, which is expected to aggravate the law and order situation in the city.

The market turnover fell 13.98 percent and traded 122.16 million shares as compared to previous session’s 142.02 million shares. The overall market capitalisation declined by 1.02 percent to close at Rs 2.121 trillion from its opening at Rs 2.143 trillion. Out of total 348 companies, 88 closed in positive zone, 244 in negative, while 16 remained unchanged.

Analysts said change in mind set due to high chances of price erosion has forced the prospective buyers to wait for negativity in order to accumulate main-board-stocks with strong fundamentals. This is evident from the fact that buyers surfaced on dips allowing the 100-share index to minimise the decline.

Low volumes continued to dampen the sentiment. The fact that ready board leverage has been eliminated the movement has been extreme forcing even the value buyers to wait for bottom locks for accumulation. Absence of support somewhere in the middle led to stagnation and that ultimately resulted in price erosion.

The KSE 100 index opened in the green zone with a gain of 54.75 points and at the end of the day closed at 7,125.66 points with a loss of 73.21 points.

Jah Siddi and Co was the volume leader in the share market with 9.80 million shares as it closed at Rs 26.09 after opening at Rs 27.37 losing Rs 1.28. NBP traded 8.76 million shares as it closed at Rs 74.49 from its opening at Rs 75.70 losing Rs 1.21. Bank Alfalah traded 6.82 million shares as it closed at Rs 11.71 as against its opening at Rs 11.66 making a financial gain of five paisas. OGDC traded 5.87 million shares as it closed at Rs 72.31 as compared to its opening at Rs 74.26 losing Rs 1.95. Pervez Ahmad traded 5.22 million shares as it closed at Rs 6.06 as compared with its opening at Rs 5.79 gaining 27 paisas.

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