KSE remains bearish on economic instability, growing militancy
Friday, 22 May 2009
KARACHI, May 21 : Unrelenting selling pressure kept the Karachi stock market in the bearish zone Wednesday, as investors remained concerned over rising economic instability coupled with growing militancy in the country, according to Daily Times.
The Karachi Stock Exchange (KSE) 100-share index shed 7.13 points or 0.10 per cent to close at 7,060.72 points as compared to 7,067.85 points of the previous trading session.
The KSE 30-share index also decreased by 9.01 points and closed at 7,592.16 points as compared with 7,601.17 points. The KMI 30-share index gained 24.24 points to close at 10,116.70 points as against 10,092.46 points.
Analysts said that falling rupee value, foreign selling, expectations of possible taxation on stock exchanges also contributed to the decline. It was yet another day of low volumes as investors remained uninspired to come forward and play their due role towards enhancement of volumes.
The market turnover went up by 7.12 per cent and traded 80.42 million shares as compared to previous session's 75.07 million shares. The overall market capitalisation fell 0.47 per cent to close at Rs 2.096 trillion as compared with Rs 2.106 trillion. Out of total 310 companies, 100 closed in positive zone, 197 in negative, while 13 remained unchanged.
Analysts said budget phobia, concerns regarding tight money supply locally (movement observed ahead of year closings), and outcome of the T-bill auction were being made an escape goat for the calmness in the market.
Eying the movement based on previous sessions, sellers mainly due to shallowness came in earlier, followed by institutional offloading, which was initiated due to redemption calls that forced massive rate erosion in main board stocks.
Well prepared for the decline, the prospective buyers came in for bottom fishing in the main board stocks offering resistance to the hefty selling allowing the 100-share index to restrict the decline. Breach of psychological level of 7,000 points did add to the negativity as low turnover led strength and decline failed to change the strategies, thereby buyers continued to make short visits in case of deep reds.
Brokers said reason for negative index includes continuation of selling activity as Pakistan faces worst displacement crises.
However, state-run funds played a major role in the market support throughout the day.
The KSE 100 index opened in the green zone with a gain of 24.55 points and at the end of the day closed at 7,060.72 points with a loss of 7.13 points.
Meanwhile: The Lahore Stock Exchange (LSE) closed higher Wednesday with a low turnover. The LSE 25-share index added 3.12 points to close at 2,089.15 points as against its opening at 2,086.03 points.
The volume of the market remained at 8.68 million shares, which was 0.4 million shares less than Tuesday's turnover of 9.08 million shares. Out of active 108 scrips, 21 added, 31 declined and 56 showed no change in their opening values.
Adamjee Insurance was the major gainer and gained Rs 3.69 to close at 80.60 from its opening at Rs 76.91. PPL surged Rs 1.87 to close at Rs 171.37 after opening at Rs 169.50. HBL was the major loser and declined by Rs 1.93 to close at Rs 94.36 as compared to its opening at Rs 96.29. PSO lost Rs 1.80 to close at Rs 187.60 as compared with its opening at Rs 189.40.
Bank Alfalah was the major volume leader with 1.08 million shares. It added 15 paisas to close at Rs 12.23 from its opening at Rs 12.08. DG Khan Cement with 0.95 million shares gained Rs 1.15 to close at Rs 25.48 after opening at Rs 24.33.
The Karachi Stock Exchange (KSE) 100-share index shed 7.13 points or 0.10 per cent to close at 7,060.72 points as compared to 7,067.85 points of the previous trading session.
The KSE 30-share index also decreased by 9.01 points and closed at 7,592.16 points as compared with 7,601.17 points. The KMI 30-share index gained 24.24 points to close at 10,116.70 points as against 10,092.46 points.
Analysts said that falling rupee value, foreign selling, expectations of possible taxation on stock exchanges also contributed to the decline. It was yet another day of low volumes as investors remained uninspired to come forward and play their due role towards enhancement of volumes.
The market turnover went up by 7.12 per cent and traded 80.42 million shares as compared to previous session's 75.07 million shares. The overall market capitalisation fell 0.47 per cent to close at Rs 2.096 trillion as compared with Rs 2.106 trillion. Out of total 310 companies, 100 closed in positive zone, 197 in negative, while 13 remained unchanged.
Analysts said budget phobia, concerns regarding tight money supply locally (movement observed ahead of year closings), and outcome of the T-bill auction were being made an escape goat for the calmness in the market.
Eying the movement based on previous sessions, sellers mainly due to shallowness came in earlier, followed by institutional offloading, which was initiated due to redemption calls that forced massive rate erosion in main board stocks.
Well prepared for the decline, the prospective buyers came in for bottom fishing in the main board stocks offering resistance to the hefty selling allowing the 100-share index to restrict the decline. Breach of psychological level of 7,000 points did add to the negativity as low turnover led strength and decline failed to change the strategies, thereby buyers continued to make short visits in case of deep reds.
Brokers said reason for negative index includes continuation of selling activity as Pakistan faces worst displacement crises.
However, state-run funds played a major role in the market support throughout the day.
The KSE 100 index opened in the green zone with a gain of 24.55 points and at the end of the day closed at 7,060.72 points with a loss of 7.13 points.
Meanwhile: The Lahore Stock Exchange (LSE) closed higher Wednesday with a low turnover. The LSE 25-share index added 3.12 points to close at 2,089.15 points as against its opening at 2,086.03 points.
The volume of the market remained at 8.68 million shares, which was 0.4 million shares less than Tuesday's turnover of 9.08 million shares. Out of active 108 scrips, 21 added, 31 declined and 56 showed no change in their opening values.
Adamjee Insurance was the major gainer and gained Rs 3.69 to close at 80.60 from its opening at Rs 76.91. PPL surged Rs 1.87 to close at Rs 171.37 after opening at Rs 169.50. HBL was the major loser and declined by Rs 1.93 to close at Rs 94.36 as compared to its opening at Rs 96.29. PSO lost Rs 1.80 to close at Rs 187.60 as compared with its opening at Rs 189.40.
Bank Alfalah was the major volume leader with 1.08 million shares. It added 15 paisas to close at Rs 12.23 from its opening at Rs 12.08. DG Khan Cement with 0.95 million shares gained Rs 1.15 to close at Rs 25.48 after opening at Rs 24.33.