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KSE index down 24.76 points

RECORDER REPORT

KARACHI: Declines at the stock market extended to Friday as the news of killing of civilians and rumours of clashes between Pakistan and Indian troops near the Line of Control sent grave signals, and in haste holders offloaded their portfolios.

The nervousness among the investors caused a drop in share values and the index lost nearly 25 points every counter receiving hefty selling orders. The main factor behind the plunge was the clashes reported at the disputed Kashmir border. Furthermore, the high badla rates prevented the genuine investors to enter the rings.

Gas companies lost nearly Re 1 each while other pivotals like PSO, PTCL, Hubco and ICI, suffered mild trimming.

Abdul Majeed, of Finex Securities, said that during the first half of the session, the demand in PTCL, PSO, ICI and Hubco was high and some fresh deals were recorded. However, he added, as the report of clashes at the borders filtered into the stock market, the hopes of grand recovery washed away and the index suffered fresh pruning, breaking the 2000 barrier.

The KSE-100 index registered a fall of 24.76 points, or 1.23 percent, to 1980.43 from 2005.19 of Thursday. The volume amounted to 240.811 million shares, as against 282.861 million shares of Thursday . Market capitalisation moved down to Rs 504.771 billion from Rs 509.914 billion of yesterday.

An analyst from Westminster and Eastern Services Ltd said that the bulls were ambushed by bears as the former attempted to lift the market to recover its losses. The bulls once again opened the market in a positive column, who lately had been overthrown by the bears during the second session over the rumour concerning border clash at Indo-Pak LoC. The rumour provided the missing ingredient to profit-hunters who diluted the stout market to some extent.

The analyst said he believed that the market had slightly eased off after this minor correction and might witness sideway movement in the coming session.

Mohammad Zubair Ellahi, of KAB Securities, said that the prevailing optimism was put to a strong test on unfavourable macro-environment developments resulting in a significant slide. The badla rates, too, were on higher side, suggesting large long positions. The heavy badla volumes might exert further pressure but broader term outlook was still positive.

Faisal Abbas, of AHR Securities said that finally the long overdue correction emerged which apparently was also the last working day of the settlement week, and the pundits were expecting the correction. The day started on a bullish note and the index was going up in early hours, where buying in the selected stocks was observed at that time, where the active stocks recorded gain in their price levels.

He added that the bulls' rally was broken by a rumour regarding killing of at least 12 persons near the Line of Control by Indian commandos, which eventually resulted in panic selling pressure.

PTCL on a trading of 105.649 million shares showed a decline of 20 paisa to Rs 32.65: Hub Power moved down to Rs 27.70 from Rs 28.85 as nearly 28.173 million shares changed hands; ICI on a volume of 21.960 million shares closed at Rs 14.15, lower by 40 paisa; PSO on a turnover of 21.127 million shares closed at Rs 262.50, lower by 15 paisa; and Dhan Fibre on a business of 11.335 million shares moved down by Rs 9.00 from Rs 10.20.