KARACHI: Bearish sentiments dominated the trading session at the Karachi stock market on the first trading day of the week Monday as no major incentive was announced for the stock market during the unveiling of annual budget.
Analysts said tax on exports affected the share prices at the post-budget trading session.
The Karachi Stock Exchange (KSE) 100-share index shed 103.22 points or 1.46 percent to close at 6,953.09 points as compared to previous week’s close of 7,056.31 points. The KSE 30-share index decreased by 146.38 points and closed at 7,372.47 points as compared with 7,518.85 points. However, the KMI 30 index gained 79.16 points to close at 10,434.17 points as against 10,513.33 points.
Analysts said that the 100-share index failed to maintain the psychological level of 7,000 points after the first trading day of the post-budget session while daily turnover continued to be dismal reflecting lack of confidence among investors. The market turnover went down by 15.51 percent and traded 106.27 million shares as compared to previous session’s 125.79 million shares. The overall market capitalisation also declined by 1.39 percent to close at Rs 2.053 trillion as compared with Rs 2.082 trillion. Out of total 279 companies, 86 closed in the positive zone, 180 in negative, while 13 remained unchanged.
Sectors were already minting money despite the economic downturn, said analyst at Aziz Fida Husein and Co Hasnein Asghar Ali. Other sectors were either neutral or negative. So was the reaction from the local bourse, cement and auto sector got a positive response, while dividend yielding stocks on basis of the discounts available witnessed accumulation on dips.
While the sectors likely to benefit in the upcoming trade and monetary policy invited renewed buying interest allowing the benchmark to sustain the psychological 7,000 points. Lull around mid-day and fierce selling by prominent players not only pushed the index below the psychological level, but ‘hot water’ was poured even on the sectors and stocks likely to have a positive impact of the budget and upcoming trade policy. Confusion linked to introduction of federal excise duty and replacing it with capital value tax was however addressed before the opening. Confusion regarding PTR and WHT prevailed disallowing the seasoned participants to react on the budget, nevertheless the dull activity proved that its actually the introduction of modified CFS that is being awaited and the product will be catalyst for re inviting the turnover. Prevailing levels suggest that the introduction of the proposed product will have a positive impact on the market, he added.
Analysts said tax on exports affected the share prices at the post-budget trading session.
The Karachi Stock Exchange (KSE) 100-share index shed 103.22 points or 1.46 percent to close at 6,953.09 points as compared to previous week’s close of 7,056.31 points. The KSE 30-share index decreased by 146.38 points and closed at 7,372.47 points as compared with 7,518.85 points. However, the KMI 30 index gained 79.16 points to close at 10,434.17 points as against 10,513.33 points.
Analysts said that the 100-share index failed to maintain the psychological level of 7,000 points after the first trading day of the post-budget session while daily turnover continued to be dismal reflecting lack of confidence among investors. The market turnover went down by 15.51 percent and traded 106.27 million shares as compared to previous session’s 125.79 million shares. The overall market capitalisation also declined by 1.39 percent to close at Rs 2.053 trillion as compared with Rs 2.082 trillion. Out of total 279 companies, 86 closed in the positive zone, 180 in negative, while 13 remained unchanged.
Sectors were already minting money despite the economic downturn, said analyst at Aziz Fida Husein and Co Hasnein Asghar Ali. Other sectors were either neutral or negative. So was the reaction from the local bourse, cement and auto sector got a positive response, while dividend yielding stocks on basis of the discounts available witnessed accumulation on dips.
While the sectors likely to benefit in the upcoming trade and monetary policy invited renewed buying interest allowing the benchmark to sustain the psychological 7,000 points. Lull around mid-day and fierce selling by prominent players not only pushed the index below the psychological level, but ‘hot water’ was poured even on the sectors and stocks likely to have a positive impact of the budget and upcoming trade policy. Confusion linked to introduction of federal excise duty and replacing it with capital value tax was however addressed before the opening. Confusion regarding PTR and WHT prevailed disallowing the seasoned participants to react on the budget, nevertheless the dull activity proved that its actually the introduction of modified CFS that is being awaited and the product will be catalyst for re inviting the turnover. Prevailing levels suggest that the introduction of the proposed product will have a positive impact on the market, he added.
Comments