Karachi stocks index sheds 72 points
Wednesday, 29 July 2009
KARACHI, July 28 (Bloomberg): Pakistan's Karachi Stock Exchange will extend today's trading by 15 minutes after trading was suspended due to a technical fault. The share market usually closes at 3:30 p.m.
The market will reopen for trade at 1:10 p.m. on the back- up system, Anita Mirza, spokeswoman for the exchange, said by telephone. Trading was suspended at 11:44 a.m. local time.
Meanwhile: The Karachi stock market witnessed selling pressure on the first trading day of the week Monday on delay in monetary policy review by SBP to August 15, without giving any reason for such delay.
The Karachi Stock Exchange (KSE) 100-share index 72.34 points or 0.93 per cent to close at 7,711.06 points as compared to 7,783.40 points of the previous session. The KSE 30-share index closed at 8,268.70 points with loss of 95.78 points. The KMI 30 index closed at 11,603.34 points with a decline of 58.83 points.
Analysts said that investors remained concerned as uncertainty loomed over discount rate cut as investment cost is expected to rise after the delay in monetary policy announcement.
The market turnover went down by 37.00 per cent and traded 121.61 million shares as compared to previous session's 193.04 million shares. The overall market capitalisation was up by 0.82 per cent to close at Rs 2.75 trillion as compared with Rs 2.29 trillion. Out of total 406 companies, 165 closed in the positive zone, 217 in negative, while 24 remained unchanged.
Confusion pertaining to delay in monetary policy led to a stagnant opening, while declining local currency pushed the 100-share index into the red territory, said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. "Activity was witnessed on dips, as it is a popular view that delay has been done in order to provide relief to the economy by declining the interest rate substantially."
The element of surprise kept the fund mangers cautious and the introduction of deliverable forward kept the interest of the market participants alive allowing turnover to keep ticking, he added.
The upcoming corporate announcements and announcement of trade policy (likely to be ambitious, as the policy is likely to cater to a $25 billion export) continued to invite buying interest in the stocks likely to shine in the post event sessions, he said adding that increasing trend in the cash rich oil and gas exploration stocks, having a decent dividend history invited decent quantum buyers on dips while government's effort to address circular debt issue kept the buyers active in the cash starved stocks as well offering various options to the seasoned market participants.
The market will reopen for trade at 1:10 p.m. on the back- up system, Anita Mirza, spokeswoman for the exchange, said by telephone. Trading was suspended at 11:44 a.m. local time.
Meanwhile: The Karachi stock market witnessed selling pressure on the first trading day of the week Monday on delay in monetary policy review by SBP to August 15, without giving any reason for such delay.
The Karachi Stock Exchange (KSE) 100-share index 72.34 points or 0.93 per cent to close at 7,711.06 points as compared to 7,783.40 points of the previous session. The KSE 30-share index closed at 8,268.70 points with loss of 95.78 points. The KMI 30 index closed at 11,603.34 points with a decline of 58.83 points.
Analysts said that investors remained concerned as uncertainty loomed over discount rate cut as investment cost is expected to rise after the delay in monetary policy announcement.
The market turnover went down by 37.00 per cent and traded 121.61 million shares as compared to previous session's 193.04 million shares. The overall market capitalisation was up by 0.82 per cent to close at Rs 2.75 trillion as compared with Rs 2.29 trillion. Out of total 406 companies, 165 closed in the positive zone, 217 in negative, while 24 remained unchanged.
Confusion pertaining to delay in monetary policy led to a stagnant opening, while declining local currency pushed the 100-share index into the red territory, said analyst at Aziz Fida Husein and Co Hasnain Asghar Ali. "Activity was witnessed on dips, as it is a popular view that delay has been done in order to provide relief to the economy by declining the interest rate substantially."
The element of surprise kept the fund mangers cautious and the introduction of deliverable forward kept the interest of the market participants alive allowing turnover to keep ticking, he added.
The upcoming corporate announcements and announcement of trade policy (likely to be ambitious, as the policy is likely to cater to a $25 billion export) continued to invite buying interest in the stocks likely to shine in the post event sessions, he said adding that increasing trend in the cash rich oil and gas exploration stocks, having a decent dividend history invited decent quantum buyers on dips while government's effort to address circular debt issue kept the buyers active in the cash starved stocks as well offering various options to the seasoned market participants.