Political divide shatters investors’ confidence; 383 points lost (27082008)

LEADER REPORT
KARACHI: Market on Tuesday witnessed a massive decline as index tumbled to close below 9,500 points. Trading started in the negative zone while seeing minor recovery, following which the index got jolted with heavy selling pressure as investors opted for offloading stance.
The KSE-100 Index lost considerable weights of 383 points to close at 9,430 levels with volumes under stress at 87mn shares being traded intraday. Bears annihilated bulls with 241 companies lost values while only 30 companies gained intraday.
E&P sector heavy weights, OGDC, POL and PPL, all lost hugely to push the market into the red zone while losing Rs5.42, Rs13.15 and Rs8.59, respectively, while OGDC stood amongst the volume leaders. The sector that has remained vibrant during stable sessions, remained the primary loser, owing to the prevailing uncertainty and slight economic downturn, despite that the oil prices consistently remaining within the band above USD100 a barrel.
MCB, NBP, HBL and UBL, the banking sector giants, lost values to push the sector below, seconded by almost all 2nd and 3rd tier banking scrips that shed weights. With result season underway, the banks have posted some decent results, however, the expected result rallies have been overshadowed by the prevailing uncertainties over the current political picture.
With the coalition over and out, the two major political parties have nominated their respective candidates for Presidential elections to be held next month, investors' confidence, both local and foreign, seems distressed. In longer term perspective, however, some recovery may be witnessed owing to the settlement of political clouds and prompt definition of economic road map by the current government to attract and retain investors' interest in the country.