Federal budget uncertainty drags KSE index below 7,000 points level
Friday, 5 June 2009
KARACHI, May 4: Uncertainty among investors over the upcoming federal budget dragged the Karachi Stock Exchange (KSE) 100-share index below the psychological level of 7,000 points Wednesday, according to Daily Times.
Analysts said that investors went for profit-taking. The 100-share index shed 135.17 points or 1.90 per cent to close at 6,989.94 points as compared with 7,125.11 points of the previous session.
The KSE 30-share index decreased by 226.78 points and closed at 7,445.14 points as compared to 7,671.92 points. The KMI 30 index fell 155.98 points to close at 10,264.79 points as against 10,420.77 points.
Analysts said that investors remained concerned over foreign selling, weakening rupee value, security situation in the country and high liquidity cost. The market turnover increased by 67.28 per cent and traded 139.70 million shares as compared to previous session's 83.51 million shares.
The overall market capitalisation declined by 1.89 per cent and closed at Rs 2.072 trillion as against Rs 2.112 trillion. Out of total 313 companies, 86 closed in the positive zone, 212 in negative, while 15 remained unchanged.
"The shallow and handicapped market witnessed fresh price erosion as news that the banking system growth may face slowdown, along with the news of off-loading by foreign funds added to the misery of the investors who helplessly watched their capital being wiped out despite all the fundamentals recommending otherwise," said Analyst at Aziz Fida Husein and Co Husnein Asghar Ali.
Absence of ready board leverage allowed the unseen syndicate to move the market according to their wish forcing the stakeholders to offload at available rates, despite the fact that share prices of leading banks have already adjusted by more than 200 per cent (in one year) on the perception of slowdown in growth and even negative growth, he added.
Brokers said reason for the negative closure of the market includes banking and brokerage services witnessed intense pressure ahead of services sector taxation announcements on June 13.
The KSE 100 index opened in the green zone with a gain of 23.96 points and at the end of the day closed at 6,989.94 with a loss of 135.17 points.
Jah Siddi and Co was the volume leader in the share market with 18.47 million shares as it closed at Rs 25.20 after opening at Rs 26.52 shedding Rs 1.32. OGDC traded 9.78 million shares as it closed at Rs 74.86 from its opening at Rs 76.52 shedding Rs 1.86.
Analysts said that investors went for profit-taking. The 100-share index shed 135.17 points or 1.90 per cent to close at 6,989.94 points as compared with 7,125.11 points of the previous session.
The KSE 30-share index decreased by 226.78 points and closed at 7,445.14 points as compared to 7,671.92 points. The KMI 30 index fell 155.98 points to close at 10,264.79 points as against 10,420.77 points.
Analysts said that investors remained concerned over foreign selling, weakening rupee value, security situation in the country and high liquidity cost. The market turnover increased by 67.28 per cent and traded 139.70 million shares as compared to previous session's 83.51 million shares.
The overall market capitalisation declined by 1.89 per cent and closed at Rs 2.072 trillion as against Rs 2.112 trillion. Out of total 313 companies, 86 closed in the positive zone, 212 in negative, while 15 remained unchanged.
"The shallow and handicapped market witnessed fresh price erosion as news that the banking system growth may face slowdown, along with the news of off-loading by foreign funds added to the misery of the investors who helplessly watched their capital being wiped out despite all the fundamentals recommending otherwise," said Analyst at Aziz Fida Husein and Co Husnein Asghar Ali.
Absence of ready board leverage allowed the unseen syndicate to move the market according to their wish forcing the stakeholders to offload at available rates, despite the fact that share prices of leading banks have already adjusted by more than 200 per cent (in one year) on the perception of slowdown in growth and even negative growth, he added.
Brokers said reason for the negative closure of the market includes banking and brokerage services witnessed intense pressure ahead of services sector taxation announcements on June 13.
The KSE 100 index opened in the green zone with a gain of 23.96 points and at the end of the day closed at 6,989.94 with a loss of 135.17 points.
Jah Siddi and Co was the volume leader in the share market with 18.47 million shares as it closed at Rs 25.20 after opening at Rs 26.52 shedding Rs 1.32. OGDC traded 9.78 million shares as it closed at Rs 74.86 from its opening at Rs 76.52 shedding Rs 1.86.