Shares stay weak on weekend selling

KARACHI — The Karachi share market yesterday finished the weekend session on a terribly bearish note as investors again liquidated their long positions amid fears of political confrontation between the contenders of power on some core issues.
The uncertain future political outlook was also well-reflected in fresh massive battering received by the KSE 100-share index, off 245 points or 1.7 per cent at 14,232.89 as compared to 14,479.87 a day earlier as leading base shares remained under pressure owing to weekend selling.
The weakness of the banking sector after lowering of their currency rating by the S&P to B from the B+ halted their recent upward drive under the lead of GDR-based MCB, followed by other leading ones.
Oil shares should have reacted to reports of a fresh record rise in crude oil prices to $127 per barrel but weak economic indicators did not allow consolidation forces to come into full play, analysts said.
“Setting up of an economic council consisting of top economic planners and Shaukat Tareen a well known banker and former chairman of the Karachi Stock Exchange as its convenor to chalk out plans for economic recovery failed to arrest the weekend sell-off,”they said.
As the developing situation on the political front is unfolding progressively chances of peace among the major contenders of power appear now appears to be a remote possibility despite positive lip service, they said adding and that “bearish factor could drag the market further down in the coming weeks.”
Instances of strong selective support were, however, not wanting as a section of investors led by some institutional traders covered positions on those counters, which ensure higher capital gains in future trading.
Minus signs dominated the list under the lead of Nestle Pakistan and JS & Co, off by Rs50.00 and 28.65, while Wyeth Pakistan and Siemens Pakistan were among the top gainers, up by Rs100.00 and 29.10.
Turnover figures showed a modest rise at 169 million shares from the previous 168 million shares but losers held a strong lead over the gainers at 221 to 96, with 28 shares holding on to the last levels.
Pak Premier Fund led the list of actives, easy by eight paisa at Rs13.12 on 17 million shares followed by Arif Habib Securities, off Rs2.60 at Rs190.50 on 11 million shares, Bank Al Falah, easy by 56 paisa at Rs55.30 on 10 million shares, Engro Chemical, off Rs5.65 at Rs315.00 on 7 million shares, DG Khan Cement, off Rs2.67 at Rs93.98 on 6 million shares.