KARACHI: The Karachi stock market closed lower on Tuesday as investors continued to offload their holdings.
The market remained bearish despite positive developments such as confirmation by Federal Board of Revenue (FBR) and finance authorities that no new taxes will be imposed on the share business in the upcoming budget and positive developments on Swat operation, which failed to inspire investors.
The Karachi Stock Exchange (KSE) 100-share index decreased by 85.23 points or 1.18 percent to close at 7,125.11 points as compared to 7,210.34 points in the previous session. The KSE 30-share index shed 104.41 points and closed at 7,671.92 points compared with 7,776.33 points. The KMI 30 index declined by 71.16 points to close at 10,420.77 points as against 10,491.93 points.
Analysts said that the turnover was poor in the market as investors seemed uninspired to take active part in trading activities.
The market turnover went down by 26.06 percent and traded 83.51 million shares as compared to previous session’s 112.95 million shares. The overall market capitalisation also fell 1.16 percent to close at Rs 2.112 trillion as compared with Rs 2.137 trillion. Out of total 308 companies, 84 closed in the positive zone, 211 in negative, while 13 remained unchanged.
“Absence of ready board leverage was the only reason for the ongoing price erosion,” said Analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Further delay in accepting the fact will continue to harm the market sentiment.”
Analysts further revealed that despite a comprehensive plan outlined by the prime minister to increase textile exports increased expectations of likely incentive to the textile manufacturers in the upcoming budget, rallying oil prices and participation by foreign players in the market, the local equity market continued to give a deserted look.
Lull till mid-day added to the misery of the sellers leading to massive rate erosion and the index with extremely low turnover witnessed massive decline endorsing the view that further delay in realising the need for a modified CFS (for creating depth and not necessarily initiating bull run) will continue to prove fatal.
The KSE 100 index opened marginally in the red zone with a loss of 0.05 points and at the end of the day closed at 7125.11 points with a loss of 85.23 points. Jah Siddi and Co was the volume leader in the share market with 11.32 million shares as it closed at Rs 26.52 after opening at Rs 27.88 shedding Rs 1.36. OGDC traded 6.94 million shares as it closed at Rs 76.72 from its opening at Rs 78.34 shedding Rs 1.62.
The market remained bearish despite positive developments such as confirmation by Federal Board of Revenue (FBR) and finance authorities that no new taxes will be imposed on the share business in the upcoming budget and positive developments on Swat operation, which failed to inspire investors.
The Karachi Stock Exchange (KSE) 100-share index decreased by 85.23 points or 1.18 percent to close at 7,125.11 points as compared to 7,210.34 points in the previous session. The KSE 30-share index shed 104.41 points and closed at 7,671.92 points compared with 7,776.33 points. The KMI 30 index declined by 71.16 points to close at 10,420.77 points as against 10,491.93 points.
Analysts said that the turnover was poor in the market as investors seemed uninspired to take active part in trading activities.
The market turnover went down by 26.06 percent and traded 83.51 million shares as compared to previous session’s 112.95 million shares. The overall market capitalisation also fell 1.16 percent to close at Rs 2.112 trillion as compared with Rs 2.137 trillion. Out of total 308 companies, 84 closed in the positive zone, 211 in negative, while 13 remained unchanged.
“Absence of ready board leverage was the only reason for the ongoing price erosion,” said Analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Further delay in accepting the fact will continue to harm the market sentiment.”
Analysts further revealed that despite a comprehensive plan outlined by the prime minister to increase textile exports increased expectations of likely incentive to the textile manufacturers in the upcoming budget, rallying oil prices and participation by foreign players in the market, the local equity market continued to give a deserted look.
Lull till mid-day added to the misery of the sellers leading to massive rate erosion and the index with extremely low turnover witnessed massive decline endorsing the view that further delay in realising the need for a modified CFS (for creating depth and not necessarily initiating bull run) will continue to prove fatal.
The KSE 100 index opened marginally in the red zone with a loss of 0.05 points and at the end of the day closed at 7125.11 points with a loss of 85.23 points. Jah Siddi and Co was the volume leader in the share market with 11.32 million shares as it closed at Rs 26.52 after opening at Rs 27.88 shedding Rs 1.36. OGDC traded 6.94 million shares as it closed at Rs 76.72 from its opening at Rs 78.34 shedding Rs 1.62.
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