The KSE-100 index declined by 83.09 points, or 1.57 percent, to 5206.83 as compared with 5289.92 of Friday. The volume dropped to 188 million shares as against 221 million shares. The market capitalisation slipped by Rs 21 billion to Rs 1,407 billion.
Umar Gagi from Akbarally Cassim said that massive correction took place as the market reacted to the attack on Shaukat Aziz. FF Bin Qasim was the volume leader as rumours of its merger with Fauji were circulating in the market. Handsome pay-out in the mutual fund sector are currently providing good chances for the investors. "We anticipate Al-Meezan Mutual Fund to announce impressive results on Tuesday."
The badla decreased by 330 million rupees. The badla in Pakistan Oilfields decreased by 11 percent. Decline in the ready market had its effect on the badla market as the volumes and rates fell.
Hasnain Asghar from Aziz Fidahusein said that the attempt on life of the campaigning finance minister created further unrest among individual investors.
Although the results have been excellent on account of both earnings and pay-outs and the expected results of banking and main stocks are likely to be in line with the expectation with economy on a rise, the bullish sentiment would have allowed the index and turnover to set new records. Unfortunately, the implementation of capital value tax and withholding tax scared away the intra-day traders leaving the stock exchange at the mercy of fresh funds.
Cyra Patricia from Live Securities said that with the market taking another plunge, investors continued to wonder as to when the index would recover. Friday's law and order situation, coupled with speculation, led the index to take a huge dip.
The market is currently in an oversold position. "Technically, the index should rebound from here onwards, but observing speculation and focussed selling pressure by punters change our stance leading us to witness further corrections in the index."
The share prices received colossal loss because of the attempt at assassination of finance minister Shaukat Aziz and tensions in Balochistan. Investors expressed pessimism towards investing in the market.
FF Bin Qasim fell 25 paisa to Rs 20.95 on a volume of 39 million shares; OGDC moved down to Rs 62.70 from Rs 64.90 on turnover of 24 million shares; D.G. Khan Cement showed a rise of 15 paisa to Rs 55.50 on trading of 18 million shares; PTCL lost 75 paisa to Rs 42.80 on business of 13 million shares; and TRG dropped 15 paisa to Rs 17.65 on turnover of 8 million shares.