Range-bound activities dominated the trading session at the Karachi stock market on the first trading day of the week Monday, but the market managed to close in the green zone.
Analysts said despite strong opening, the market failed to sustain its fast pace during later part of the trading session.
The Karachi Stock Exchange (KSE) 100-share index gained a modest 17.53 points or 0.25 percent to close at 7,057.26 points as compared to 7,039.73 points of the previous trading week. The KSE 30share index also gained 31.05 points and closed at 7,479.08 points as compared with 7,448.03 points. However, the KMI 30 index also lost 5.13 points to close at 10,535.55 points as against 10,540.68 points.
The day’s trading was marked by yet another low volume. The market turnover increased by 1.49 percent and traded 98.40 million shares as compared to previous session’s 96.95 million shares. The overall market capitalisation gained 0.14 percent to close at Rs 2.091 trillion as compared with Rs 2.088 trillion. Out of total 313 companies, 101 closed in the positive zone, 193 in negative, while 19 remained unchanged.
Analysts said although the victory in cricket has no direct impact on the economic fundamentals, the wave of optimism across the nation did influence the trading pattern at the market, which unfortunately continued to trade below potential, mainly due to absence of ready board leverage. Buying in the index heavy weights OGDC and MCB (that contributed 30 percent to the turnover and 45 points in the benchmark) mainly by the seasoned participants allowed the indices to reflect positivism, while the developments over the weekend invited support in the relevant stocks on dips.
Support assured by the Ministry of Finance regarding the amendments proposed by the business chambers in the federal budget 2009-10, mainly on reinstating the presumptive tax regime (final discharge) for exporting concerns and reduction in withholding tax on imports and the proposal forwarded by Ministry of Petroleum to ECC for increase in deemed duty from current 7.5 percent to 10 percent under the new head, kept buyers attentive for opportunities in the sector stocks.
Mixed views on timeline for introduction of leverage product has restricted the sideliners from making fresh entries, support fund however stayed active in the identified stocks restricting any major turbulence, while the private sector institutes seeing their portfolios improve rarely came in for fierce selling and mild offloading came in without disturbing the sentiment.
OGDC was the volume leader in the share market with 15.12 million shares as it closed at Rs 77.11 after opening at Rs 75.42 gaining Rs 1.69.
Analysts said despite strong opening, the market failed to sustain its fast pace during later part of the trading session.
The Karachi Stock Exchange (KSE) 100-share index gained a modest 17.53 points or 0.25 percent to close at 7,057.26 points as compared to 7,039.73 points of the previous trading week. The KSE 30share index also gained 31.05 points and closed at 7,479.08 points as compared with 7,448.03 points. However, the KMI 30 index also lost 5.13 points to close at 10,535.55 points as against 10,540.68 points.
The day’s trading was marked by yet another low volume. The market turnover increased by 1.49 percent and traded 98.40 million shares as compared to previous session’s 96.95 million shares. The overall market capitalisation gained 0.14 percent to close at Rs 2.091 trillion as compared with Rs 2.088 trillion. Out of total 313 companies, 101 closed in the positive zone, 193 in negative, while 19 remained unchanged.
Analysts said although the victory in cricket has no direct impact on the economic fundamentals, the wave of optimism across the nation did influence the trading pattern at the market, which unfortunately continued to trade below potential, mainly due to absence of ready board leverage. Buying in the index heavy weights OGDC and MCB (that contributed 30 percent to the turnover and 45 points in the benchmark) mainly by the seasoned participants allowed the indices to reflect positivism, while the developments over the weekend invited support in the relevant stocks on dips.
Support assured by the Ministry of Finance regarding the amendments proposed by the business chambers in the federal budget 2009-10, mainly on reinstating the presumptive tax regime (final discharge) for exporting concerns and reduction in withholding tax on imports and the proposal forwarded by Ministry of Petroleum to ECC for increase in deemed duty from current 7.5 percent to 10 percent under the new head, kept buyers attentive for opportunities in the sector stocks.
Mixed views on timeline for introduction of leverage product has restricted the sideliners from making fresh entries, support fund however stayed active in the identified stocks restricting any major turbulence, while the private sector institutes seeing their portfolios improve rarely came in for fierce selling and mild offloading came in without disturbing the sentiment.
OGDC was the volume leader in the share market with 15.12 million shares as it closed at Rs 77.11 after opening at Rs 75.42 gaining Rs 1.69.
Comments