Pakistan Defence
Karachi stocks lose steam, shed 182 points
Staff Report
KARACHI: The Karachi stock market witnessed a highly volatile session and closed lower on Wednesday as concerns over rising budget deficit and uncertainty in global stocks forced investors to book profits.
The Karachi Stock Exchange (KSE) 100-share index shed 182.09 points or 0.82 percent to close at 22,092.42 points as compared to 22,274.51 points of the previous session. The KSE 30-share index was down by 174.62 points to close at 17,132.09 points as compared with 17,306.71 points.
Stocks closed lower amid institutional profit-taking in an overbought market, said Arif Habib Corporation Director Ahsan Mehanti. Consolidation continued after fall in global stocks and limited foreign interest to support the post-election rally at KSE.
The market turnover went up by 22.14 percent and traded 664.67 million shares as against 544.15 million shares of the previous session. The overall market capitalisation shed 1.03 percent and traded Rs 5.349 trillion as against Rs 5.405 trillion. Losers outnumbered gainers 237 to 148, while 18 stocks were unchanged.
Due to concerns over rising budget deficit and fall in global stocks the morning rally turned into an afternoon rout, said Habib Metropolitan Financial Services analyst Salman Vidhani. The 100-share index moved within a wide range of 405 points with bears finally winning the tug of war. Profit-taking by local financial institutions ahead of fiscal year-end and higher tax rate on inter-corporate dividends dampened investor sentiment. Market liquidity seems to be moving from strength to strength as overall turnover hit 89-month high of 665 million shares. Oil and gas sector bore the brunt of selling frenzy led by index heavyweight Oil and Gas Development Company, while leading independent power producers also fell prey to opportunistic play.
The KMI 30-share index shed 497.15 points to close at 37,837.29 points from its opening at 38,334.44 points. The KSE all-share index closed by losing 151.11 points to 15,526.98 points as compared to 15,678.09 points of the previous session.
As per expectations the 100-share index changed its trend from positive towards negative, said M M Securities analyst Sania Zulfiqar. With overbought conditions the market adopted a profit-taking strategy opening on a positive note and making a high of 22,422.46 points, before losing its steam.
The commercial banks sector continued leading the market with highest volumes being traded and following it was the cement sector.
The market is expected to continue its profit-taking strategy, she added.
Bank of Punjab (R) was the volume leader in the share market with 97.80 million shares as it closed at Rs 5.73 after opening at Rs 5.04, gaining 69 paisas. Pace (Pak) Ltd traded 48.76 million shares as it closed at Rs 5.34 from its opening at Rs 4.62, rising 72 paisas. Jahangir Siddiqui and Co traded 40.45 million shares and closed at Rs 14.61 as compared to its opening at Rs 13.91, increasing 70 paisas. Bank of Punjab traded 34.05 million shares as it closed at Rs 15.87 against its opening at Rs 14.88, appreciating 99 paisas.
Daily Times - Leading News Resource of Pakistan
Staff Report
KARACHI: The Karachi stock market witnessed a highly volatile session and closed lower on Wednesday as concerns over rising budget deficit and uncertainty in global stocks forced investors to book profits.
The Karachi Stock Exchange (KSE) 100-share index shed 182.09 points or 0.82 percent to close at 22,092.42 points as compared to 22,274.51 points of the previous session. The KSE 30-share index was down by 174.62 points to close at 17,132.09 points as compared with 17,306.71 points.
Stocks closed lower amid institutional profit-taking in an overbought market, said Arif Habib Corporation Director Ahsan Mehanti. Consolidation continued after fall in global stocks and limited foreign interest to support the post-election rally at KSE.
The market turnover went up by 22.14 percent and traded 664.67 million shares as against 544.15 million shares of the previous session. The overall market capitalisation shed 1.03 percent and traded Rs 5.349 trillion as against Rs 5.405 trillion. Losers outnumbered gainers 237 to 148, while 18 stocks were unchanged.
Due to concerns over rising budget deficit and fall in global stocks the morning rally turned into an afternoon rout, said Habib Metropolitan Financial Services analyst Salman Vidhani. The 100-share index moved within a wide range of 405 points with bears finally winning the tug of war. Profit-taking by local financial institutions ahead of fiscal year-end and higher tax rate on inter-corporate dividends dampened investor sentiment. Market liquidity seems to be moving from strength to strength as overall turnover hit 89-month high of 665 million shares. Oil and gas sector bore the brunt of selling frenzy led by index heavyweight Oil and Gas Development Company, while leading independent power producers also fell prey to opportunistic play.
The KMI 30-share index shed 497.15 points to close at 37,837.29 points from its opening at 38,334.44 points. The KSE all-share index closed by losing 151.11 points to 15,526.98 points as compared to 15,678.09 points of the previous session.
As per expectations the 100-share index changed its trend from positive towards negative, said M M Securities analyst Sania Zulfiqar. With overbought conditions the market adopted a profit-taking strategy opening on a positive note and making a high of 22,422.46 points, before losing its steam.
The commercial banks sector continued leading the market with highest volumes being traded and following it was the cement sector.
The market is expected to continue its profit-taking strategy, she added.
Bank of Punjab (R) was the volume leader in the share market with 97.80 million shares as it closed at Rs 5.73 after opening at Rs 5.04, gaining 69 paisas. Pace (Pak) Ltd traded 48.76 million shares as it closed at Rs 5.34 from its opening at Rs 4.62, rising 72 paisas. Jahangir Siddiqui and Co traded 40.45 million shares and closed at Rs 14.61 as compared to its opening at Rs 13.91, increasing 70 paisas. Bank of Punjab traded 34.05 million shares as it closed at Rs 15.87 against its opening at Rs 14.88, appreciating 99 paisas.
Daily Times - Leading News Resource of Pakistan