KARACHI: Stocks extended the decline in the first post-Eid session on Monday as the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell by 132.82 points (0.40 per cent) to close at an 18-week low of 32,690.02.
Traded volume also dropped 15pc to 110.9 million shares while traded value fell 9pc to Rs4.7bn.
Analysts at Global Securities said lack of investors’ interest in equity trading was evident as the market, after reaching the intra-day high of 32,978 during the opening 30 minutes, plummeted to its low of 32,648.
Moreover, blue-chip stocks were unable to gain investors’ attention as major volumes were witnessed in second-tier stocks such as BYCO (14.19m shares), KEL (12.17m shares), and TRG (6.16m shares).
Analysts reckoned that the market could remain range-bound until a major recovery was seen in the overall volumes, which was the primary concern for investors at present. “A recovery in turnover can act as a catalyst to boost investor confidence across the board,” several market participants argued. Foreign investors also took minimal interest with net buying of just $0.11m worth stocks.
Dealers at Topline Securities said the market opened on a positive note, gaining 154 points at the session’s start. However, volatility in regional markets and lukewarm participation in Pakistan’s Eurobond offer dampened investors’ sentiments.
Most market participants were unhappy with the Eurobond results. On Friday (Sept 25) Pakistan issued a new Eurobond of $500m with a maturity of 10-year. Coupon rate was 8.25pc equal to the rate at which it issued same bonds in April last year. Amount raised was lower than the initial target of $1bn while coupon rate was higher than estimates of 7.5-8pc (as prevailing yield is 7.25pc on 2024 issue).