The market was awash with rumours of regulatory action against brokers. This resulted in a lack of activity at the bourse as the market closed well below the 33,000-point level. Expectations of a further cut in discount rate dented the banking sector but the overall sentiment remained directionless as the KSE’s decline continued.
At close of business, the KSE benchmark 100-share index fell 1.21 % or 403.09 points to end at 32,860.57.
Elixir Securities analyst Haris Ahmed Batla said less than a 100 million shares exchanged hands as the week kicked off on a relatively dull note.”
Arif Habib Commodities Chief Executive Officer Ahsan Mehanti said stocks closed lower amid institutional profit taking after fall in global commodities.
Mehanti said that weak global equities, limited foreign interest and consolidation in blue chip scrips post major earning announcements at KSE played a catalyst role in bearish activity at the KSE.
Trade volumes dropped to 99 million shares compared to 134 million on Friday.
Shares of 343 companies were traded on yesterday. Of these, 218 declined, 103 closed higher and 22 remained unchanged. The value of shares traded during the day was Rs5.4 billion.
Jahangir Siddiqui and Company was the volume leader with 10.4 million shares, losing Rs0.17 to close at Rs17.82. It was followed by K-Electric Limited with 8.7 million shares, gaining Rs0.16 to close at Rs7.82 and TRG Pakistan Limited with 5.6 million shares, gaining Rs0.15 to close at Rs15.22.
Also read: KSE Market Watch: Volatile market still bearish
Foreign institutional investors were net sellers of Rs662 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.