Stock market sheds another 296 points

KARACHI: The share market on Monday remained depressed as liquidity crunch continued to haunt investors amid escalating tension with India in the aftermath of Mumbai attacks, Dawn reported.

The KSE 100-share index was quoted further lower by 3.95 per cent or 296.96 points at 7,217.46.

Threatening statements by the Indian leaders on the Mumbai attack issue seems to have created pre-war hysteria on the stock market as some of the leading investors hastened to liquidate their positions at the falling prices but without finding any willing buyer.

‘War with India may not be imminent but persistent threats from across the borders has made situation look like so as was reflected by steep fall in the daily volume,’ analyst Hasnain Asghar Ali said.

And added to it were various interpretations of Sindh High Court ruling on the outstanding positions on the badla market and talk of revision petition in the Supreme Court and out of the court settlement on the issue, said Ahshan Mehanti.

He said bulls and bears may not be on the same wavelength since the issue of outstanding positions of Rs11 billion came in the press.

According to market sources meetings were being held between the brokerage houses to resolve the issue out of the court to give a breathing space for the unprecedented fall in the trading history of the KSE.

Ashraf Zakaria says the positive news of Rs20 billion market support fund after the IMF approval should have created a sense of security among the investors but delay in its functioning is also taking its toll.

He said there were more sellers than the buyers as no one was inclined to make fresh commitments even at the lower levels on all the blue chip counters despite the fact they now provide an attractive bait for the future capital gains after the recovery process is initiated