Stock Watch - Stocks gain turned negative on Musharraf case uproar.

 
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Summary

The stock market which was bullish for seven consecutive weeks suddenly nosedived 1113 points in two days on the news of decision by Special Court, which handed down death sentence to former army chief General Pervez Musharraf in the high treason case under Article 6 of the Constitution.

The market which started positive on early two days of the week was jittered by the news. There was fear among investors of the clash of institutions but later subsided on clarification through press releases of DG ISPR and Government on the matter as it closed positive on the last day of the week. The court verdict dampened some positives developments in the economy like IMF allowing release of $452 million, Current Account Deficit for November reported 73% lower YoY, SBP reported foreign exchange reserves $10.9 billion, which is eight months highest level.

During the week the stock closed flat shedding 83.6 points. The Index which was touching 42,000 level high, closed 40,832.99 on Friday. The average volume improved this week to 297m. The market capitalization decreased by 56 billion to Rs.7.846 trillion. The foreigners turned buyer with $3.14 million.

Stocks maintained the rising momentum on Monday as the KSE-100 Index gained 728.29 points to close at 41,644.88. The news of Russia to participate in divestment of government shareholding in OGDC and PPL led to their trading at upper at upper lock

The market continued its upward trend on Tuesday and gained 123.78 points to close at 41,768.66. The news of Musharraf verdict led market Index drop to intraday low of by 619 points

The news of Musharraf verdict started impacting the market and Index lost 164.95 points to close at 41,603.71 on Wednesday.

The market lost 948.34 on Thursday and closed below 40,000 level to 40,655.37. Judge's 'hang him in the streets ' verdict on Musharraf's sentence sparks fury and caution for investors.

The return of index by 177.62 to close at 40,832.99 showed the confidence of the investors in the macroeconomic improvement of the economy by declining fiscal deficit, improving foreign exchange reserves with stability in exchange rate.

Participants/Activity

On average shares of 370 companies were traded. Of these 143 were gainers and 209 were losers and 18 remained unchanged.

Foreigners were net buyer $3.14m during the week; companies were buyer by $5.44m, Banks were seller $5.48m; Mutual fund net seller $8.43m and individuals net buyers $1.23m.

Volume leaders during the...

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