Saturday, May 17, 2008, Jamadi-ul-Awwal 10, 1429    

KSE-100 index suffers 246 points

Amanullah Khan

Karachi—Pakistan’s downward rating by Standard & Poor’s proves costly for the capital market compelling KSE-100 index to move in red all the day right from the beginning resulting in a massive decline of 246 points here Friday.
The disappointing, yet foreseeable, report related to Standard & Poor’s decision to downgrade Pakistan’s outlook to ‘negative’ while slashing long-term foreign currency debt rating from B+ to B and long-term local currency rating from BB to BB- had a detrimental effect on investors.
Other factors which pressurized that market were expectations circulating regarding hike in the discount rate and continuing hazy political picture.
Naturally, the cautious approach by investors was further highlighted in low volumes as it stood at 169.1million shares compared to 167.6million shares traded yesterday. Banking sector despite being the volume leader with 28.89million shares was the main contributor to the downslide of index as NBP, UBL, HBL, MCB and NIB cumulatively shed 76.4 index points. In the broad market 345 scrips were traded out of which 102 advanced, 225 declined while 18 remained unchanged.
Money Market instigated at the levels 9.0%-9.25%. No noticeable activity was seen in the market. Call was traded at the levels of 11%-12% whereas clean was traded at 11.25%-11.75% levels. Finally the market closed at the level of 9%.