Investors went for profit-taking at the Karachi stock market as the previous bullish trends have made the share prices of most of the scrips attractive, analysts said on Monday.
They said that despite opening in the green zone at the start of the trading session, the 100-share index failed to maintain its upward momentum.
The Karachi Stock Exchange (KSE) 100-share index shed 23.69 points to close at 5,573.48 points as compared to 5,597.44 points traded in the previous session. The KSE 30 index also shed 3.95 points and closed at 5,630.83 points as compared with 5,634.78 points of the previous session. KMI 30 index also shed 132.64 points and closed at 7,268.23 points as against 7,400.87 points of the previous session.
The market turnover decreased by 5.27 percent and traded 174.05 million shares as compared to previous session’s 183.74 million shares. The overall market capitalisation fell 0.51 percent to close at Rs 1.755 trillion as against Rs 1.764 trillion traded in the previous session. Out of 277 companies, 106 closed in the positive zone, 166 in negative while five remained unchanged. Analysts said getting the excuse from the ongoing issue of interpretation of IAS 39 and 40 affecting the upcoming earnings of the listed companies, the local bourses underwent yet another technical adjustment.
The barren area of 5,670 points to 5,700 points invited float from the local (corporate and high net worth) and foreign participants as the index consequently registered an adjustment of 137 points in initial hours of trading. Cautious value-buying mainly of short-term nature in oil and gas exploration and leading banking stocks on dips, mainly by traders did allow the index to recover from deep red. Low volumes however failed to inspire a confident move, thereby re-inviting float on strength.
The geo-political and various other issues have severely damaged the confidence level of the local participants resulting in a swift offloading on every down tick. Positive direction through the policies can only reduce the capital loss phobia, which has forced the liquid participants having limited avenues to hold on tight to the cash and ignore the discounted valuations. They said that growing security concerns in the country including nuclear security issues along with liquidity costs remained the main hurdles for investment in the stock market. The KSE 100 index opened in the green zone with a gain of 4.89 points and at the end of the day closed at 5,573.48 points with a loss of 23.19 points. OGDC, was the volume leader in the share market with 18.37 million shares as it closed at Rs 50.05 after opening at Rs 50 making a financial gain of five paisas.
They said that despite opening in the green zone at the start of the trading session, the 100-share index failed to maintain its upward momentum.
The Karachi Stock Exchange (KSE) 100-share index shed 23.69 points to close at 5,573.48 points as compared to 5,597.44 points traded in the previous session. The KSE 30 index also shed 3.95 points and closed at 5,630.83 points as compared with 5,634.78 points of the previous session. KMI 30 index also shed 132.64 points and closed at 7,268.23 points as against 7,400.87 points of the previous session.
The market turnover decreased by 5.27 percent and traded 174.05 million shares as compared to previous session’s 183.74 million shares. The overall market capitalisation fell 0.51 percent to close at Rs 1.755 trillion as against Rs 1.764 trillion traded in the previous session. Out of 277 companies, 106 closed in the positive zone, 166 in negative while five remained unchanged. Analysts said getting the excuse from the ongoing issue of interpretation of IAS 39 and 40 affecting the upcoming earnings of the listed companies, the local bourses underwent yet another technical adjustment.
The barren area of 5,670 points to 5,700 points invited float from the local (corporate and high net worth) and foreign participants as the index consequently registered an adjustment of 137 points in initial hours of trading. Cautious value-buying mainly of short-term nature in oil and gas exploration and leading banking stocks on dips, mainly by traders did allow the index to recover from deep red. Low volumes however failed to inspire a confident move, thereby re-inviting float on strength.
The geo-political and various other issues have severely damaged the confidence level of the local participants resulting in a swift offloading on every down tick. Positive direction through the policies can only reduce the capital loss phobia, which has forced the liquid participants having limited avenues to hold on tight to the cash and ignore the discounted valuations. They said that growing security concerns in the country including nuclear security issues along with liquidity costs remained the main hurdles for investment in the stock market. The KSE 100 index opened in the green zone with a gain of 4.89 points and at the end of the day closed at 5,573.48 points with a loss of 23.19 points. OGDC, was the volume leader in the share market with 18.37 million shares as it closed at Rs 50.05 after opening at Rs 50 making a financial gain of five paisas.
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