KSE slumps 62 points as MQM pulls out of fed govt

KARACHI: The Karachi stock market faced a bearish trading session on Tuesday as investors fretted over the withdrawal of a Muttahida Qaumi Movement from the federal government.
The Karachi Stock Exchange (KSE) 100-share index shed 61.68 points or 0.52 percent to close at 11,848.05 points as compared to 11,909.73 points of the previous session. The KSE 30-share index also lost 59.85 points to close at 11,403.42 points as compared with 11,463.27 points.

“Conflict between the government and coalition partners resulted in investors trimming their positions, especially in oil and fertilizer stocks,” said Topline Sec analyst Samar Iqbal. “However, buying interest was seen in Nishat Mills after its inclusion in the Shariah index.”

The market turnover went up by 29.31 percent traded 110.11 million shares from its previous session’s 85.15 million shares. The overall market capitalisation went down by 0.52 percent and closed at Rs 3.2221 trillion after opening at Rs 3.238 trillion. Losers outnumbered gainers 231 to 144 while 25 stocks were unchanged.

“Bearish activity was witnessed on rising political uncertainty after major political coalition member pulled out from the federal cabinet,” said Arif Habib Investment Ltd Director Ahsan Mehanti. “Investors remained concerned over rising fiscal deficit after extension approval by the International Monetary Fund for the stand-by arrangement for Pakistan’s economic support and security concerns after a blast at the University of Karachi.”

The KMI 30 decreased by 83.94 points to close at 18,866.49 points as compared to 18,950.43 points of the previous session. The KSE all-share index closed with a loss 43.26 points closing at 8,239.10 points as against 8,239.10 points.

“Stocks carrying high debt burden with indications of continuity of rising trend in local interest rates faced offloading both by the corporate and retail participants,” said Aziz Fida Hussein & Co analyst Husnein Asghar Ali. “The good omen that partial funds were duly placed in the blue chips offering consistent yields kept the equation balanced, while portfolio dressing activity in various speculative stocks kept the turnover ticking.”

Fauji Fert Bin Qasim was the volume leader with 9.30 million shares as it closed at Rs 37.14 after opening at Rs 37.31, shedding 17 paisas. NBP traded 8.06 million shares as it closed at Rs 72.77 from its opening at Rs 72.25, gaining 52 paisas. Arif Habib Corp traded 7.35 million shares as it closed at Rs 25.72 as compared to its opening at Rs 25.02, rising 70 paisas. Fatima Fert Co traded 6.31 million shares as it closed at Rs 10.99 as compared with its opening at Rs 10.80, surging 19 paisas. – Dailytimes