Business | Markets
Pakistani stocks slump on low trading volume
Pakistan's main index ended nearly four per cent lower per cent on Monday in low volume as foreign investors sold shares amid lack of any positive triggers and ongoing worries about the economy after the government presented its 2008/09 budget proposals last week.
- Reuters
- Published: 23:06 June 16, 2008
Karachi: Pakistan's main index ended nearly four per cent lower per cent on Monday in low volume as foreign investors sold shares amid lack of any positive triggers and ongoing worries about the economy after the government presented its 2008/09 budget proposals last week.
The Karachi Stock Exchange (KSE) benchmark 100-share index fell 3.84 per cent, or 497.43 points, to 12,444.13.
Volume was 80.12 million shares compared with a 12-month daily average of 253.01 million shares. Losers led gainers 251 to 46.
The KSE-30 share index shed 4.51 per cent lower at 14,552.29.
"There is not much interest in the market, and few investors are selling as there is not a positive newsflow," said Sajid Bhanji, a dealer at brokers Arif Habib Securities Ltd.
Dealers said the budget proposals announced last week had little impact and investors remained sidelined due to the uncertain economic outlook. "Sentiment is extremely weak these days," said Mohammad Yasin, vice-chairman at Capital One Equities.
Pressure
Dealers said the banking sector came under pressure due to a speculative newspaper story on Sunday that government agencies planned to withdraw their deposits from the banking sector. However, the government issued a statement saying it did not plan on taking any measures to drain liquidity.
Adding to the pressure on banks, Credit Suisse Group reduced share price targets for Habib Bank Ltd, United Bank Ltd and Allied Bank Ltd, dealers said.
Among the most active firms, NIB Bank fell 4.6 per cent to Rs12.40, National Bank of Pakistan shed five per cent to Rs164.35, while Engro Chemicals ended five per cent lower at Rs288.80.
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