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Stocks plunge by 365 points

KARACHI — The KSE 100-share index yesterday received a massive battering and plunged by 365 points on panic selling originating from all the quarters in the backdrop of renewed wave of political uncertainty, notably the apex court's ruling on the president's eligibility to seek re-election.The KSE 100-share index crashed by 365 points at 14,029.00.

It appears to be a belated investor reaction to the court proceedings on the petitions seeking court ruling on the issue but as the date of verdict is around most of the leading investors tried to shed an extra weight. Hence the plunge.

Some others said the central bank warning about the future inflationary pressures and the current account deficit despite growth rate above seven per cent also considered a bearish factor.

The KSE 100-share index crashed by 365.68 points at 14,027.80 as compared to 14,393.48 a day earlier as all the leading base shares came in for active profit-selling under the lead of banking and cement shares.Its junior partner fell by 436.33 points at 16,788.84.

Although some of the leading foreign investors tried to reverse the trend after having made fresh covering purchases in the leading oil shares but offloaded position after mid-session in OGDC and Pakistan Petroleum, intensifying the index fall. But what seems to have worried investors and institutional traders was the expected supreme court ruling on the eligibility of president to seek reelection for the second terms possibly on Thursday, said a leading analyst Hasnain Asghar Ali. But Faisal Abbas another prominent analysts thinks the snap sell-off was psychological rather than real as the market has the capacity and will to rebound after the verdict on the strength of corporate earnings. “But if the apex court ruling is negative then there could be more pruning”, he said adding “the strong holding capacity of the big ones may not allow any major shakeout at this stage”.

Bata Pakistan and Wyeth Pakistan were leading among the gainers,up by Rs24.90 and 88.00,while Siemens Pakistan and Unilever were prominent among the losers, off Rs24.00 and 26.00.

Trading volume rose to 256 million sharsw from the previous 250 million shares but losers forced a strong lead over the gainers at 243 to 106, with 39 shares holding on to the last levels.

Arif Habib Securities topped the list of active, sharply lower by Rs8.85 at Rs171.40 on 21 million shares followed by OGDC, off Rs3.90 at Rs 124.35 on 19 million shares, Pakisan Petroleum, lower by Rs7.75 at Rs255.25 also on 19 million shares, Attock Refinery, off Rs4.05 at Rs 278.00 on 11 million shares, Bank of Punjab, lower by Rs5.15 at Rs97.85 on 9 million shares, Netsol, off Rs5.50 at Rs148.40 on 7 million shares.