KARACHI

Bears continued to prowl the equity market on fourth consecutive day on Thursday as the KSE-100 index went further in downward spiral showing a loss of 483.61 points or 1.66 per cent and the benchmark index closed at 28674.37 points.

Panic selling witnessed at KSE on rumor mongering on political and economic front. Ahsan Mehanti at Arif Habib Corporation stated fears gripped following IPPs claims on sovereign guarantees to recover unpaid bills of Govt. Concerns for FBR documentation measure of charging enhanced rates of withholding tax from non-filers of income tax returns, abolishment of ICH arrangement with LDI operators and circular debt concerns in energy sector played a catalyst role in bearish activity at KSE.

The KSE-All shares Index dropped by 348.76 points or 1.62 percent and closed at end of the day at 21238.72 points as compared to 21587.48 points previous day, KSE-30 Index sank by 342.55 points or 1.71 percent and concluded at 19717.18 points whereas KMI-30 down by 844.65 points or 1.80 percent at end of the day closed at 46071.05 points. High and low were 29213.11 and 28553.31 respectively.

Total volume traded in the market was with 138,955,640 shares with 367 total traded companies out of which 54 were up, 300 were down and 13 were unchanged. Market analyst state at present, uncertainty prevails regarding the LDI operators’ new rate which during pre-ICH was capped at USc5.0/min although operators, due to intense competition, were charging a much lower rate of USc0.8/min. In this regard, as per our discussion with industry contacts, PTA (Pakistan Telecommunication Authority) has called a meeting of LDI operators to decide the new rate.

They believe LDI operators would love to maintain a higher rate (at around USc5.9/min) for better revenues and might not indulge in price war as seen in the past. However, small LDI operators might show some resistance in order to improve their market share.