The Karachi stock market closed slightly higher on Friday as most investors kept to the sidelines.
Analysts attributed the lack lustre trading to the critical security situation in the country and limited activity by retail and institutional investors. The Karachi Stock Exchange (KSE) 100-share index was slightly up by 3.85 pts or 0.05 percent to close at 7,129.51 points as compared to 7,125.66 points of the previous session. The KSE 30-share index surged 40.77 points and closed at 7,602.13 points as compared with 7,561.36 points. The KMI 30 index was slightly down by 0.65 points to close at 10,034.13 points as against 10,034.78 points.
Analysts said mixed activity was witnessed during the trading session as uncertainty loomed over repercussions of Prime Minister Gilani’s call for intense offensive against militants of Swat and Malakand. Very thin volume of 100 million shares were traded during the session indicating cautious approach by investors, as they are not prepared to take any risk.
The market turnover went fell 17.35 percent and traded 100.96 million shares as compared to previous session’s 122.16 million shares. The overall market capitalisation went up by 0.09 percent and closed at Rs 2.123 trillion as compared with Rs 2.121 trillion. Out of the total 316 companies, 176 closed in the positive zone, 126 in negative, while 14 remained unchanged. Silent protest went on as the consequences of CFS elimination continued to surface, low turnover, high impact cost and extreme movement stayed the fate of the market, said Analyst at Aziz Fida Husein and Co Hasnain Asghar Ali.
The market continued to give a deserted look; rate erosion and inflation stayed a main feature, thereby disallowing the participants and the stake holders a peaceful sleep, he said. Ali said that leading stocks of banking and fertilizer sectors invited buying interest allowing the bench mark to maintain positive posture and group specific stocks followed pursuit giving the market participants trading options.
With the majority still ‘beating about the bush’ in identifying the basic reason for the slump in turnover that disallowed the market to perform at its potential, the market is failing to invite buying interest in even the main board stocks, except for that at bottom locks or closer to that level. Although smooth sailing beyond May 12, 2009, achievement of goals from the ongoing operation in Northern Areas, realisation of various financial commitments, ongoing efforts for taking extended support from donor institutions (unlikely though, due to low average turnover) and inclusion in MSCI index, may allow increase in turnover but certainly not to the potential as the maximum strength will only be displayed after reintroduction of CFS and removal of ban from ‘in-house badla’ (private credit). The KSE 100 index opened in the red zone with a loss of 4.76 points and at the end of the day closed at 7,129.51 points with a gain of 3.85 points.
NBP was the volume leader in the share market with 7.96 million shares as it closed at Rs 74.93 after opening at Rs 74.49 making a financial gain of 44 paisas. Jah Siddi and Co traded 6.77 million shares as it closed at Rs 26.08 from its opening at Rs 26.09 losing one paisa. Pervez Ahmad traded 6.42 million shares as it closed at Rs 6.70 as against its opening at Rs 6.06 making a financial gain of 64 paisas.
Analysts attributed the lack lustre trading to the critical security situation in the country and limited activity by retail and institutional investors. The Karachi Stock Exchange (KSE) 100-share index was slightly up by 3.85 pts or 0.05 percent to close at 7,129.51 points as compared to 7,125.66 points of the previous session. The KSE 30-share index surged 40.77 points and closed at 7,602.13 points as compared with 7,561.36 points. The KMI 30 index was slightly down by 0.65 points to close at 10,034.13 points as against 10,034.78 points.
Analysts said mixed activity was witnessed during the trading session as uncertainty loomed over repercussions of Prime Minister Gilani’s call for intense offensive against militants of Swat and Malakand. Very thin volume of 100 million shares were traded during the session indicating cautious approach by investors, as they are not prepared to take any risk.
The market turnover went fell 17.35 percent and traded 100.96 million shares as compared to previous session’s 122.16 million shares. The overall market capitalisation went up by 0.09 percent and closed at Rs 2.123 trillion as compared with Rs 2.121 trillion. Out of the total 316 companies, 176 closed in the positive zone, 126 in negative, while 14 remained unchanged. Silent protest went on as the consequences of CFS elimination continued to surface, low turnover, high impact cost and extreme movement stayed the fate of the market, said Analyst at Aziz Fida Husein and Co Hasnain Asghar Ali.
The market continued to give a deserted look; rate erosion and inflation stayed a main feature, thereby disallowing the participants and the stake holders a peaceful sleep, he said. Ali said that leading stocks of banking and fertilizer sectors invited buying interest allowing the bench mark to maintain positive posture and group specific stocks followed pursuit giving the market participants trading options.
With the majority still ‘beating about the bush’ in identifying the basic reason for the slump in turnover that disallowed the market to perform at its potential, the market is failing to invite buying interest in even the main board stocks, except for that at bottom locks or closer to that level. Although smooth sailing beyond May 12, 2009, achievement of goals from the ongoing operation in Northern Areas, realisation of various financial commitments, ongoing efforts for taking extended support from donor institutions (unlikely though, due to low average turnover) and inclusion in MSCI index, may allow increase in turnover but certainly not to the potential as the maximum strength will only be displayed after reintroduction of CFS and removal of ban from ‘in-house badla’ (private credit). The KSE 100 index opened in the red zone with a loss of 4.76 points and at the end of the day closed at 7,129.51 points with a gain of 3.85 points.
NBP was the volume leader in the share market with 7.96 million shares as it closed at Rs 74.93 after opening at Rs 74.49 making a financial gain of 44 paisas. Jah Siddi and Co traded 6.77 million shares as it closed at Rs 26.08 from its opening at Rs 26.09 losing one paisa. Pervez Ahmad traded 6.42 million shares as it closed at Rs 6.70 as against its opening at Rs 6.06 making a financial gain of 64 paisas.
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