Investors stampeded for the exit in the departing week which saw the KSE-100 index sink by 1,084 points (2.83 percent). Market experts said it represented the ending of the worst quarter (September-December) in 10 years since the global market reduces in 2008.
The index closed well below the 38,000 confrontation level at 37,167 points, departure investor in fear of another push that could see it topple below the new physiological support level of 37,000.
In addition to the uncertainties over a weak economy which sit on the investors' mind, the loud noise on the political front created panic during the week, resultant in powerful instability, low volume, and an inexorable massacre.
On the economic side, weak worldwide indicators; further fall of $591 million in the State Bank foreign substitute reserves; drop in international oil prices impacting heavyweight oil and gas examination and production sector; no new inflows from friendly countries and a big question mark over discussions with the International Monetary Fund for bailout package worn saver self-assurance in the or else pleasantly valued local market.
The problems were confused by joint examination team inquisitive money laundering submitted its report to the apex court on fake accounts that were supposedly used to wash Rs42 billion and the award of 7-year jail sentence to the former PM Nawaz Sharif. This was followed by the federal administration placing 172 names, including those of former President Asif Ali Zardari and his son under the exit control list, which further charged the political atmosphere.
The overturn week also kept investors sidelined. The market also remained aware of the Financial Action Task Force review due next month where the administration is working to prepare a fulfillment report to save the country from falling into the blacklist.
For the 34th week in sequence, foreign investor went on a selling spree, footage outflow of $1.1m during the outgoing week. Foreign sell-off was witnessed in fertilizer at $1.2m and commercial banks $1.2m. On the local front, mutual funds were net sellers of $6.2m worth equity, while banks bought shares of $4.6m and companies picked up stocks valued at $3.6m. In mutual funds, unitholders seemed to shift to money market funds from equity.
The quantity during the week enhanced 5pc to 110m shares while value traded was higher by 6pc to $35.9m. Sector-wise, the worst performer was business banks that ate away 361 points, followed by oil and gas examination companies shedding 230 points, cement 172 points and fertilizer 137 points. On the flip side, tobacco and pharmaceuticals offered the market some respite, recording collective gains of 102 points.
Among stocks, Oil and Gas Development Company decreased 4.4pc, Pakistan Petroleum 4.1pc, Mari Petroleum 4.8pc, and Pakistan Oilfields 3.4pc. Another laggard was United Bank, down 117 points, Engro Corporation 101 points, and Lucky Cement 87 points.
Going forward, an investor is likely to remain cautious on the last session of the year on Monday on the back of political insecurity as the ex-president Asif Zardari is due to emerge in person in the Supreme Court.
As the year comes to a close, equities have produced a negative return of 8pc so far with foreign selling at $536m. Market gurus expect the New Year buying by banks and mutual funds to be delayed until the dust settles on the economic and political front.
