Stocks fall: KSE

Karachi: Stock market posted heavy losses on Monday as the KSE-100 index plunged by 390.24 points to close just a step above the 26,000 level at 26,003.89. The market has lost 2.5 per cent.

The pressure started to mount as the news of government calling off the round of peace talks with the Taliban circulated in the market, sending weak holders scurrying for the exit.

Investors feared for the peace process after the grim confession of killing 23 kidnapped soldiers was made by the TTP.

Politics and security soon dampened enthusiasm and the fear put the upcoming potentially healthy financial results on the back burner.

As most institutional investors remained on the sidelines, the volume declined to trading value of Rs6.2bn from Rs7.5bn the previous session.

The ray of hope was the foreign investors who continued to go on cherry picking with inflow of $0.91 million worth of stocks on Monday.

Among the locals, companies decided to take profit by the sale of $2.49m worth shares.

Analyst Ovais Ahsan at JS Global stated that the major decliners of the day were MCB Bank down by 1.17pc and Engro lower by 3pc.