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Lack of institutional support at KSE leads to a decrease of 297 points

There was no let up in the downward slide at the Karachi stock market as the 100-share index saw a correction of 296.96 points on Monday. Analysts said the reasons for the negative trend was continuation of selling pressure as liquidity crunch prevailed while lack of institutional support and retail divestment led to a correction.

The Karachi Stock Exchange (KSE) 100-share shed a massive 296.96 points to close at 7,217.46 points as compared with 7,514.42 points traded in the previous session. The KSE 30 index lost 385.69 points and closed at 7,295.56 points as compared to 7,681.25 points of the previous session. KMI 30 index also declined by 423.56 points to close at 8,445.22 points as against 8,868.78 points of the previous session.

The market turnover went down up by 66.95 percent and traded 28.00 million shares as compared to previous session’s 84.74 million shares. The overall market capitalisation fell by 3.69 percent and closed at Rs 2.241 trillion compared to Rs 2.327.65 trillion traded in the previous session. Out of 181 companies, 15 closed in positive zone, 161 in negative while five remained unchanged.

Analysts said Sindh High Court’s decision for Rs 7 billion pledge challenged by stock brokers together with claims on National Clearing Company regarding mark to market losses remained a major concern while Pak-India relations, tight monetary policy and global equity fall affected the market’s sentiment negatively.

The KSE 100 index opened in the red zone with loss 44.58 points and at the end of the day closed at 7,217.46 with a loss of 296.96 points.

Arif Habib Bank was the volume leader in the share market with 4.13 million shares as it closed at Rs 4.97 after opening at Rs 5.85 shedding 88 paisas. NIB Bank traded 3.64 million shares as it closed at Rs 4.23 after opening at Rs 4.73 losing 50 paisas. TRG Pakistan traded 2.59 million shares as it closed at Rs 1.97 after opening at Rs 2.14 losing 17 paisas. JS Bank Ltd traded 1.85 million shares as it closed at Rs 4.89 after opening at Rs 5.46 losing 57 paisas. Zeal Pak. traded 1.53 million shares as it closed at 60 paisas after opening at 64 paisas losing four paisas. staff report

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