The Karachi stock market continued to remain under selling pressure on Thursday following prevailing uncertainty over legal outcome of the presidential order for raise in petroleum prices as petroleum development levy (PDL) after SC ordered suspension in implementation of carbon surcharge.
The Karachi Stock Exchange (KSE) 100-share index lost 46.10 points or 0.62 percent to close at 7,430.01 points as compared to 7,476.11 points of the previous trading session. The KSE 30-share index shed 63.84 points and closed at 7,956.56 as compared to 8,020.40 points. The KMI 30 index also decreased by 36.78 points to close at 11,171.62 points as against 11,208.40 points.
“Despite opening on a positive note, the market remained under pressure due to uncertainty regarding the relationship between the judiciary and government on oil pricing,” said analyst at Toplien Sec Mohammad Sohail. “Some pressure in oil stocks was also seen due to declining global oil prices.”
The market turnover went up by 22.08 percent and traded 144.15 million shares as compared to previous session’s 118.07 million shares. The overall market capitalisation was down by 0.49 percent to close at Rs 2.195 trillion as compared with Rs 2.206 trillion. Out of total 290 companies, 127 closed in the positive zone, 141 in negative, while 22 remained unchanged.
“Presidential ordinance addressed the issue of revenue target that aroused after Supreme Court’s decision, highlighted profits of OMCs’ and refineries for previous years in the judicial report published,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “It did give negative signals to the stakeholders of the sector stocks, besides the action and re-action added to the nervousness pertaining to overall economic and political situation.”
Analysts said the market already handicapped due to absence of leverage tools gave a shaky look, he said adding that support provided by traders and seasoned players allowed the likely sellers to wait for strength restricting the likely panic selling at available rates to a ‘sell on strength’ strategy allowing the 100-share index to manage and recover from red numbers. Stagnation however made it an uphill task to manage a positive closing.
“Fall in international oil prices near to $61, uncertainty in global capital markets and limited activity of foreign investors were the reasons behind the negative performance,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.
The KSE 100 index opened in the green zone with a gain of 33.39 points and at the end of the day closed at 7,430.01 points with a loss of 46.10 points.
The Karachi Stock Exchange (KSE) 100-share index lost 46.10 points or 0.62 percent to close at 7,430.01 points as compared to 7,476.11 points of the previous trading session. The KSE 30-share index shed 63.84 points and closed at 7,956.56 as compared to 8,020.40 points. The KMI 30 index also decreased by 36.78 points to close at 11,171.62 points as against 11,208.40 points.
“Despite opening on a positive note, the market remained under pressure due to uncertainty regarding the relationship between the judiciary and government on oil pricing,” said analyst at Toplien Sec Mohammad Sohail. “Some pressure in oil stocks was also seen due to declining global oil prices.”
The market turnover went up by 22.08 percent and traded 144.15 million shares as compared to previous session’s 118.07 million shares. The overall market capitalisation was down by 0.49 percent to close at Rs 2.195 trillion as compared with Rs 2.206 trillion. Out of total 290 companies, 127 closed in the positive zone, 141 in negative, while 22 remained unchanged.
“Presidential ordinance addressed the issue of revenue target that aroused after Supreme Court’s decision, highlighted profits of OMCs’ and refineries for previous years in the judicial report published,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “It did give negative signals to the stakeholders of the sector stocks, besides the action and re-action added to the nervousness pertaining to overall economic and political situation.”
Analysts said the market already handicapped due to absence of leverage tools gave a shaky look, he said adding that support provided by traders and seasoned players allowed the likely sellers to wait for strength restricting the likely panic selling at available rates to a ‘sell on strength’ strategy allowing the 100-share index to manage and recover from red numbers. Stagnation however made it an uphill task to manage a positive closing.
“Fall in international oil prices near to $61, uncertainty in global capital markets and limited activity of foreign investors were the reasons behind the negative performance,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.
The KSE 100 index opened in the green zone with a gain of 33.39 points and at the end of the day closed at 7,430.01 points with a loss of 46.10 points.
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