KARACHI

The Karachi stock market, following the somber trend in regional markets on Tuesday also plummeted 475.44 points or 1.5pc to close at 32,215 points level, making 19 weeks low.

Antagonistic sentiment prevailed at large amongst market participants today as irrespective of news flows the KSE continued its downward spiral, following the footsteps of their regional peers. The index opened negative and remained in that zone for the rest of the day closing the index down 1.45pc with supporting volumes of 179m shares. News of banking spreads decreasing by 35bps in 8M2015 kept the sector under pressure where the big 5 banks remained negative throughout the session, market analysts said. Biggest laggards of the sector for the day were ABL down 1.8pc, HBL 2.3pc and UBL declined 2.1pc respectively. On the back of good financial results and in anticipation of a favorable policy along with rumors of special incentives for Large Vehicle manufacturers kept interest in the sector where GHNL rose 5pc and Hino up 5pc hit their upper circuit before noon today, observed analyst at JS Global. Investors remained wary of continuous fall in international bourses, fearing further selling by foreign investors.

Foreigners remained net sellers of $19m MTD till yesterday while KSE-100 index fell by 7.2pc or 2,512 points MTD, argued Samar Iqbal at Topline Securities. While cherry picking was seen in dividend yielding stocks, FFC.

Higher than anticipated result announced by FECTC led the stock to close at 5pc upper limit. Stocks plunged at KSE ahead of quarter end close on institutional profit-taking on weak earnings outlook, stated another market analyst.

Falling banking spreads, dismal exports data and major fall in global stocks on China economic uncertainty impacted the sentiments along with ongoing investigations in the corporate sector despite strong economic data, IMF approvals of $500m tranche under EFF and successful $500m 10-year euro bond issue, they argued.