Bears continued to dominate the trading session at the Karachi stock market on Friday as investors kept on offloading their holdings, analysts said.
The reasons for the negative closure of the market intense selling pressure spurred by liquidity crunch, margin calls on brokers, Pak-India tensions and SECP calls on records of brokers’ clients. The Karachi Stock Exchange (KSE) 100-share index shed 266.65 points to close at 5,511.93 points as compared with 5,778.58 points traded in the previous session. The KSE 30 index also lost 292.94 points and closed at 5,217.53 points as compared to 5,510.47 points of the previous session. KMI 30 index declined by 366.67 points to close at 6,882.69 points as against 7,249.45 points of the previous session.
The market turnover went down by 40.82 percent and traded 72.26 million shares as compared to previous session’s 122.11 million shares. The overall market capitalisation fell 4.28 percent and closed at Rs 1.743 trillion as against Rs 1.821 trillion traded in the previous session. Out of 243 companies, 25 closed in positive zone, 210 in negative while eight remained unchanged.
Analysts said panic engulfed bourse was awaiting the word ‘go’, with squeezing volumes.
It seems that the sellers, foreign and local corporate (mainly selling the pledged securities, regardless of the values and fundamentals of the particular stocks, being slaughtered), continued to sell in a haste thereby providing no breathing space for the market participants who might have ignored various threats to the swift economic recovery incase of stability in the local bourses. Therefore, in absence of any new and aggressive initiative for economic recovery the natural adjustment in the local bourses will force the index to settle much lower than the perceived levels. Materialisation of rumours of buyback of the government sector stocks can however spread a fresh wave in the local arena, while support by the banking regulator on the pledged stocks of the defaulting clients can restrict the sellers, digesting foreign inflow amid positive domestic economic environment may not be a tough call.
Analysts, citing reasons of negative closure of the market, attributed them to limited activity by NIT State Enterprise Fund and expected volatility in exchange rate of the rupee against the dollar on SBP’s direction to purchase dollar through interbank, which remained a major concern for investors. The KSE 100 index opened in the red zone with a loss of 27.77 points and at the end of the day closed at 5,508.46 points with a loss of 266.65 points.
Zeal Pak was the volume leader in the share market with 5.79 million shares as it closed at 47 paisas after opening at 53 paisas shedding six paisas. OGDC traded 5.29 million shares as it closed at Rs 49.40 after opening at Rs 52.00 shedding Rs 2.60. NIB Bank traded 5.15 million shares as it closed at Rs 4.54 after opening at Rs 5.03 shedding 49 paisas. PTCL traded 4.21 million shares as it closed at Rs 14.00 after opening at Rs 15.00 losing Re 1. Al-Abbas Cement traded 3.92 million shares as it closed at Rs 3.20 after opening at Rs 4.18 losing 98 paisas.
The reasons for the negative closure of the market intense selling pressure spurred by liquidity crunch, margin calls on brokers, Pak-India tensions and SECP calls on records of brokers’ clients. The Karachi Stock Exchange (KSE) 100-share index shed 266.65 points to close at 5,511.93 points as compared with 5,778.58 points traded in the previous session. The KSE 30 index also lost 292.94 points and closed at 5,217.53 points as compared to 5,510.47 points of the previous session. KMI 30 index declined by 366.67 points to close at 6,882.69 points as against 7,249.45 points of the previous session.
The market turnover went down by 40.82 percent and traded 72.26 million shares as compared to previous session’s 122.11 million shares. The overall market capitalisation fell 4.28 percent and closed at Rs 1.743 trillion as against Rs 1.821 trillion traded in the previous session. Out of 243 companies, 25 closed in positive zone, 210 in negative while eight remained unchanged.
Analysts said panic engulfed bourse was awaiting the word ‘go’, with squeezing volumes.
It seems that the sellers, foreign and local corporate (mainly selling the pledged securities, regardless of the values and fundamentals of the particular stocks, being slaughtered), continued to sell in a haste thereby providing no breathing space for the market participants who might have ignored various threats to the swift economic recovery incase of stability in the local bourses. Therefore, in absence of any new and aggressive initiative for economic recovery the natural adjustment in the local bourses will force the index to settle much lower than the perceived levels. Materialisation of rumours of buyback of the government sector stocks can however spread a fresh wave in the local arena, while support by the banking regulator on the pledged stocks of the defaulting clients can restrict the sellers, digesting foreign inflow amid positive domestic economic environment may not be a tough call.
Analysts, citing reasons of negative closure of the market, attributed them to limited activity by NIT State Enterprise Fund and expected volatility in exchange rate of the rupee against the dollar on SBP’s direction to purchase dollar through interbank, which remained a major concern for investors. The KSE 100 index opened in the red zone with a loss of 27.77 points and at the end of the day closed at 5,508.46 points with a loss of 266.65 points.
Zeal Pak was the volume leader in the share market with 5.79 million shares as it closed at 47 paisas after opening at 53 paisas shedding six paisas. OGDC traded 5.29 million shares as it closed at Rs 49.40 after opening at Rs 52.00 shedding Rs 2.60. NIB Bank traded 5.15 million shares as it closed at Rs 4.54 after opening at Rs 5.03 shedding 49 paisas. PTCL traded 4.21 million shares as it closed at Rs 14.00 after opening at Rs 15.00 losing Re 1. Al-Abbas Cement traded 3.92 million shares as it closed at Rs 3.20 after opening at Rs 4.18 losing 98 paisas.
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