KARACHI: Pakistan’s equity market on Thursday shed gains by 2.28 percent following the release of the detailed order in Musharraf high treason case which demanded the former military ruler be arrested and hanged. 

The benchmark KSE 100 index declined by 948 points or 2.28 percent to close at the 40655.37 level. During the trading session, the index oscillated by 1364 points between high of 41,794 and low of 40,430 levels.

“Market takes a major plunge today (Thursday) upon release of the detailed judgment of Pervez Musharraf case that caused panic among investors and raised a concern about the ongoing spat between the State Institutions,” Samiullah Tariq, Director Research at Arif Habib Limited, commented. “Besides, the start of roll-over week is also close which along with situation at border cautioned investors to better book profits than hold positions,” he added. 

The Indian army chief, late Wednesday, hinted at potential escalation at the Line of Control (LoC) that marks the de facto border dividing the disputed Kashmir territory between India and Pakistan. The Pakistan army spokesperson in response warned of a befitting response while the country’s foreign minister urged the UN to take notice of India deploying missiles along the LoC. 

The equity market has been bullish for the past seven consecutive weeks with the KSE100 index posting gain of 7,259 points or 21.6 percent, highest since September 2009. The market remained bullish in early trade where the main index gained by193 points.

Sectors that contributed to the performance include Banks -212 points, E&P (Exploration and production) -172 point, Fertilizer -94 points, Power -68 points, and Cement -63 point.

Trading volumes declined from 276.3 million shares to 260.1 million showing a decline of 6 percent on day to day basis. The average traded value also declined by 7 percent to $73.2 million as against $78.5 million.

Negative sentiments witnessed across the board as out of 361 traded stock, 310 stock declined, 34 closed in green and rest remain unchanged. Top decliners to the index were HBL -71 points, followed by OGDC -60 points, PPL -57 points and & HUBC -53 points.

Analysts say the market was waiting to correct itself after a long bullish spell and the court’s ruling has provided the market a correction opportunity. “Because of court verdict, the equity market closed bearish. It was waiting for the reason to correct itself and today it got it,” Adil Ghaffar, former General Secretary of PSX Brokers Association, told Arab News.