Stocks slump 4.34 percent on security concerns

[LahoreEstate]

RECORDER REPORT
KARACHI (October 20 2009): Panic selling was witnessed at Karachi share market on Monday due to South Waziristan operation and security concerns, and KSE-100 index registered heavy loss of 426.83 points, or 4.34 percent, to close at 9,411.29 points from 9,838.12 points. Just after opening in positive zone, heavy selling pressure was witnessed and the index hit 9,384.45 points intra-day low, down 453.67 points.

Both local and foreign investors preferred to offload their holdings due to concerns over the law and order situation in the country. Trading also shrank due to investors' lack of interest and the volumes at ready counter declined to 211.600 million shares as compared to 241.957 million shares traded on last Friday.

Market capitalisation also declined, by Rs 120 billion, to Rs 2.728 trillion. Of 405 active scrips, 311 closed in negative and only 75 in positive while the value of 19 scrips remained unchanged. Arif Habib Sec was the volume leader with 30.794 million shares.

However, it lost Re. 0.60 to close at Rs 47.99. Jahangir Siddiqui Co declined by Rs 1.94 to close at Rs 38.00 with 13.519 million shares. Bank Al Falah and NIB Bank decreased by Re. 0.74 and Re. 0.21 to close at Rs 14.07 and Rs 5.56 with 27.132 million shares and 9.343 million shares. Netsol Technologies lost Re. 0.09 to close at Rs 30.93 with 8.009 million shares.

PTCL declined by Re. 0.97 to close at Rs 20.16 with 7.425 million shares. Pak PTA Limited lost Re. 0.32 to close at Rs 5.29 with 5.786 million shares. Fauji Fertiliser Bin Qasim decreased by Rs 1.26 to close at Rs 26.49 with 5.671 million shares. OGDC declined by Rs 5.18 to close at Rs 106.83 with 5.540 million shares. Azgard Nine lost Rs 1.22 to close at Rs 25.99 with 4.788 million shares. Bata Pak and Treet Corporation were the highest gainers and gained Rs 20.00 and Rs 12.49 to close at Rs 920.00 and Rs 262.40 respectively.

Rafhan Maize and Wyeth Pak were the worst losers and lost Rs 95.47 and Rs 57.52 to close at Rs 1826.01 and Rs 1313.87 respectively. Ahsan Mehanti at Shehzad Chamdia Securities said that panic selling was witnessed due to uncertainty over the military operations in the South Waziristan. The suicide blast in Iran, limited foreign interest, retail and institutional selling on political and economic uncertainty, and security issues in the country played a catalystic role in negative activity at KSE, he said.

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