Despite of massive foreign selling worth of over $8 million in this single session on Friday, the Karachi bourse managed to close with modest gains on late buying in selective securities.
Earlier, market had shed more than five per cent or 393 points in the last five consecutive bears-run sessions till yesterday. Owing to this, market had dropped well below 7,000 points strong resistance level.
Today, KSE 100-share Index managed to recover 16.48 points or 0.24 per cent and closed at 6,894.62 points. Also, its junior partner the 30-Index inches up by 6.07 points or 0.08 per cent and concluded at 7,314.11 points.
“Despite net selling of more than $8 million the market remained firm due to buying by local investors. A record budget for development expenditure coupled with hope of introduction of leverage products forced locals to buy stocks at lower levels,” said Muhammad Sohail at Topline Securities.
Few brokers smelled massive profit selling by local financial institutions - particularly the government run institutions - in the last couple of sessions and held them responsible for keeping market in red throughout this week except for today.
One of them directly blamed National Investment Trust (NIT) for massive profit selling and said it was continuously offloading part of its holding especially in energy stocks for the sake of booking profits. He maintained that NIT was continuously buying shares in market since market hit four-year lowest level of 4,500 points early this calendar year and now it wants profit booking.
NIT-Chairman, Tariq Iqbal Khan told this correspondent that the Trust had not offloaded shares of any value, even of a single penny, from its NIT-State Enterprise Fund (NIT-SEF) since its launch in January 2009 to stabilise market after it had suffered 58 per cent loss last year.
Faisal A. Rajabali at Ali Husain Rajabali was of the view that the worries related to the budget and corporate results announcements for the quarter ending July 2009 together were not letting market to run in accordance with the firm fundamentals. He observed that investors were taking positions day-to-day, but were avoiding carrying them for the next day.
Rajabali calculated that the corporate results of banks and cement manufacturing companies might be very dull, while energy sector was expected to post healthy profits. Therefore, the leading banks, telecom, securities companies and insurance companies closed subject to technical correction. While, notables in oil & gas marketing, exploration & production companies, refineries, cement and fertilizer stocks managed to attracted some buying.
The day turnover surged by 33.6 per cent to 125 million shares in ready market against 93.6 million shares changed hands yesterday. The future market again turned lull.
Accordingly, the overall market capitalisation surged by five billion rupees to stand at Rs2,045 billion.
Out of total 275 actives, 143 stocks advanced, 120 stocks declined, while the value of remaining 12 stocks closed unchanged.
Highest volumes were witnessed in JS Company at 20.2 million closing at Rs23.67 with a loss of 33 paisa, followed by AH Securities at 9.7 million closing at Rs25.85 with a loss Rs1.22, MCB Bank at 7.5 million closing at Rs137.94 with a loss of Rs4.48, National Bank at 6.2 million closing at Rs61.67 with a loss of Rs1.09, and DG Khan Cement at 6.1 million closing at Rs24.06 with a gain of Rs1.06.
Earlier, market had shed more than five per cent or 393 points in the last five consecutive bears-run sessions till yesterday. Owing to this, market had dropped well below 7,000 points strong resistance level.
Today, KSE 100-share Index managed to recover 16.48 points or 0.24 per cent and closed at 6,894.62 points. Also, its junior partner the 30-Index inches up by 6.07 points or 0.08 per cent and concluded at 7,314.11 points.
“Despite net selling of more than $8 million the market remained firm due to buying by local investors. A record budget for development expenditure coupled with hope of introduction of leverage products forced locals to buy stocks at lower levels,” said Muhammad Sohail at Topline Securities.
Few brokers smelled massive profit selling by local financial institutions - particularly the government run institutions - in the last couple of sessions and held them responsible for keeping market in red throughout this week except for today.
One of them directly blamed National Investment Trust (NIT) for massive profit selling and said it was continuously offloading part of its holding especially in energy stocks for the sake of booking profits. He maintained that NIT was continuously buying shares in market since market hit four-year lowest level of 4,500 points early this calendar year and now it wants profit booking.
NIT-Chairman, Tariq Iqbal Khan told this correspondent that the Trust had not offloaded shares of any value, even of a single penny, from its NIT-State Enterprise Fund (NIT-SEF) since its launch in January 2009 to stabilise market after it had suffered 58 per cent loss last year.
Faisal A. Rajabali at Ali Husain Rajabali was of the view that the worries related to the budget and corporate results announcements for the quarter ending July 2009 together were not letting market to run in accordance with the firm fundamentals. He observed that investors were taking positions day-to-day, but were avoiding carrying them for the next day.
Rajabali calculated that the corporate results of banks and cement manufacturing companies might be very dull, while energy sector was expected to post healthy profits. Therefore, the leading banks, telecom, securities companies and insurance companies closed subject to technical correction. While, notables in oil & gas marketing, exploration & production companies, refineries, cement and fertilizer stocks managed to attracted some buying.
The day turnover surged by 33.6 per cent to 125 million shares in ready market against 93.6 million shares changed hands yesterday. The future market again turned lull.
Accordingly, the overall market capitalisation surged by five billion rupees to stand at Rs2,045 billion.
Out of total 275 actives, 143 stocks advanced, 120 stocks declined, while the value of remaining 12 stocks closed unchanged.
Highest volumes were witnessed in JS Company at 20.2 million closing at Rs23.67 with a loss of 33 paisa, followed by AH Securities at 9.7 million closing at Rs25.85 with a loss Rs1.22, MCB Bank at 7.5 million closing at Rs137.94 with a loss of Rs4.48, National Bank at 6.2 million closing at Rs61.67 with a loss of Rs1.09, and DG Khan Cement at 6.1 million closing at Rs24.06 with a gain of Rs1.06.
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