Selling in banking stocks trims gains on KSE
Wednesday, 10 June 2009
KARACHI, June 9: Massive selling in leading banking stocks caused the benchmark KSE 100-share Index to end almost flat on Monday with negligible losses owing to price-erosion of equities on Karachi bourse, according to The News International.
The KSE 100-share Index fractionally fell 2.62 points or 0.32 per cent and settled at 6,892 points.
Heavily dominated by the banking stocks, the KSE 30-sahre Index lost 23.06 points or 0.32 per cent to conclude at 7,291.05 points.
Hasnain Asghar Ali at Aziz Fidahusein said that foreign fund managers were selling the over valued banking stocks that kept the sector under pressure.
Moreover, law andder situation in the city over the weekend put investors on a cautious stance as such the sentiments at bourses may get worse.
The foreign portfolio investors remained net sellers and offloaded shares worth of $1.7 million in this session at local bourses, according to NCCPL.
Five notable banks i.e. National Bank, MCB Bank, Habib Bank, United Bank and NIB Bank cumulatively shed 28.5 points on the leading 100-Index. Moreover, each of them shed points in range of 2.63 points to 12.92 points in the said index.
The Bank of Punjab, however, closed positive with its two points contribution on the benchmark 100-Index, following the Government of Punjab announcement to inject Rs10 billion in the Bank to appease the huge losses the bank incurred in 2008, said an analyst.
"The Bank of Punjab posted a loss of Rs10.1 billion on account of severe deterioration in asset quality and as a result of which the equity of bank fell from Rs19 billion in Dec-2007 to Rs3.7 billion in Dec 2008. The Government of Punjab is the major shareholder in the Bank of Punjab," the JS Research reported.
A few tier-two banking stocks also performed in the positive column, it was observed on board.
The reason behind closing of leading banks in red is said to be likely imposition of a new services tax, analysts added.
On the contrary, the securities companies, cement makers, telecom, oil & gas exploration & production companies, fertilizer and refinery sectors closed in positive column.
Among the notables, the Pak Petroleum alone added over 10 points on the index.
The opening of market in green helped it briefly breach through 6,900 points in wee hours.
Simultaneously, the index touched 6,970.04 points intra-day high, gaining another 75.42 points from pre-opening level.
The non-availability of buyers at higher shares prices caused reviving bearish sentiments. Thus, index fell down to 6,805.94 points intra-day low, losing 164.10 points from the day peak level.
Short covering in other than banking stocks, however, trimmed the day losses to the closing level and ended up the day session with square positions in virtual.
In accordance with the flat closing of index, the overall market capitalisation also lowered by mere Rs51 million and stands at Rs2,045 billion.
Out of total 292 actives, 140 stocks declined, 138 stocks advanced, while the value of remaining 14 stocks closed unchanged.
Highest volumes were witnessed in JS Company at 10.3 million closing at Rs24.15 with a gain of 48 paisa, followed by AH Securities at 5.4 million closing at Rs26.67 with a gain 82 paisa, National Bank at 4.9 million closing at Rs60.29 with a loss of Rs1.38, Oil & Gas Development Company at 4.7 million closing at Rs74.09 with a gain of three paisa, and Bank of Punjab at 4.5 million closing at Rs11.38 with a gain of 99 paisa.
The KSE 100-share Index fractionally fell 2.62 points or 0.32 per cent and settled at 6,892 points.
Heavily dominated by the banking stocks, the KSE 30-sahre Index lost 23.06 points or 0.32 per cent to conclude at 7,291.05 points.
Hasnain Asghar Ali at Aziz Fidahusein said that foreign fund managers were selling the over valued banking stocks that kept the sector under pressure.
Moreover, law andder situation in the city over the weekend put investors on a cautious stance as such the sentiments at bourses may get worse.
The foreign portfolio investors remained net sellers and offloaded shares worth of $1.7 million in this session at local bourses, according to NCCPL.
Five notable banks i.e. National Bank, MCB Bank, Habib Bank, United Bank and NIB Bank cumulatively shed 28.5 points on the leading 100-Index. Moreover, each of them shed points in range of 2.63 points to 12.92 points in the said index.
The Bank of Punjab, however, closed positive with its two points contribution on the benchmark 100-Index, following the Government of Punjab announcement to inject Rs10 billion in the Bank to appease the huge losses the bank incurred in 2008, said an analyst.
"The Bank of Punjab posted a loss of Rs10.1 billion on account of severe deterioration in asset quality and as a result of which the equity of bank fell from Rs19 billion in Dec-2007 to Rs3.7 billion in Dec 2008. The Government of Punjab is the major shareholder in the Bank of Punjab," the JS Research reported.
A few tier-two banking stocks also performed in the positive column, it was observed on board.
The reason behind closing of leading banks in red is said to be likely imposition of a new services tax, analysts added.
On the contrary, the securities companies, cement makers, telecom, oil & gas exploration & production companies, fertilizer and refinery sectors closed in positive column.
Among the notables, the Pak Petroleum alone added over 10 points on the index.
The opening of market in green helped it briefly breach through 6,900 points in wee hours.
Simultaneously, the index touched 6,970.04 points intra-day high, gaining another 75.42 points from pre-opening level.
The non-availability of buyers at higher shares prices caused reviving bearish sentiments. Thus, index fell down to 6,805.94 points intra-day low, losing 164.10 points from the day peak level.
Short covering in other than banking stocks, however, trimmed the day losses to the closing level and ended up the day session with square positions in virtual.
In accordance with the flat closing of index, the overall market capitalisation also lowered by mere Rs51 million and stands at Rs2,045 billion.
Out of total 292 actives, 140 stocks declined, 138 stocks advanced, while the value of remaining 14 stocks closed unchanged.
Highest volumes were witnessed in JS Company at 10.3 million closing at Rs24.15 with a gain of 48 paisa, followed by AH Securities at 5.4 million closing at Rs26.67 with a gain 82 paisa, National Bank at 4.9 million closing at Rs60.29 with a loss of Rs1.38, Oil & Gas Development Company at 4.7 million closing at Rs74.09 with a gain of three paisa, and Bank of Punjab at 4.5 million closing at Rs11.38 with a gain of 99 paisa.