Stocks in Karachi bleed, but less than Indian counterparts

A 300-point early rally in KSE 100 cushioned the fall that came after news of surgical strikes

The trading screens of Karachi did not bleed as much as the terror camps across the LoC, following surgical strikes by the Indian armed forces.

The benchmark KSE 100 index fell marginally by 59.5 points or 0.15 per cent to close at 40,295.52. A 300-point rally in early trade, fuelled by petroleum stocks, cushioned investors from the steep fall that came after the announcement of the midnight operations.

The Pakistani benchmark saw a 700-point (1.71 per cent) plunge after the news of the attack broke. In contrast, BSE benchmark Sensex was trading with modest gains when the development hit the headlines, leading to a deeper cut. While the Sensex recovered about 100 points off its lows, it ended with a 465 point (1.64 per cent) loss. BSE 100 lost more at 2.13 per cent.
 

Only Tata Consultancy Services managed to close in the green among the Sensex stocks. Adani Ports was the top loser followed by Sun Pharma and ICICI Bank. The comparable KSE 30 index reported several gainers with Petroleum stocks such as Pakistan Oil fields, Pakistan Petroleum and Mari Petroleum gaining between 2 to 4 per cent. Searle, Pak Elektron and Engro Foods were among top losers in Karachi.

Even the broader market breadth was adverse for the Indian markets with 2,340 of the 2,930 companies traded ending in the red. Only 411 stocks advanced, an advance-decline ratio of 1: 5.7. On the other hand, only 277 Pak stocks fell against 123 stocks that gained, clocking a ratio of 1:2.25.

Some analysts saw the Pakistani denial of the attack could mean that there would not be further follow-ups. "It shows that there is no escalation," said an Indian market watcher. Even Pakistani analysts held a similar view.

"The consensus is that it's not going to lead anything crazy like a war, but it's bad for sentiment," said Gohar Rasool, head of sales for Karachi-based Intermarket Securities told news agency Reuters.

All the sectoral indices on the National Stock Exchange traded in negative territory with the metals, healthcare and PSU banks indices losing more than 3 per cent for the day.