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Bears continue to reign at KSE, 100-share index 231 points down


Bears continued to reign at the Karachi stock market on the first day of the trading week Monday on account of selling pressure spurred by liquidity crunch and expected prevalence of tight monetary policy scheduled to be announced on the 31st, said analysts.

The Karachi Stock Exchange (KSE) 100-share index shed 231.18 points to close at 5,280.75 points as compared with 5,511.93 points traded in the previous session. The KSE 30 index also lost 263.51 points and closed at 4,954.02 points as compared to 5,217.53 points of the previous session. KMI 30 index declined by 292.75 points and closed at 6,589.94 points as against 6,882.69 points of the previous session.

The market turnover went up by 5.06 percent to close at 75.98 million shares as compared to previous session’s 72.26 million shares. The overall market capitalisation fell by 3.78 percent and closed at Rs 1.677 trillion as compared with Rs 1.743 trillion traded in the previous session. Out of 252 companies, 60 closed in the positive zone, 184 in negative while eight remained unchanged.

Analysts said the current onslaught continued to dominate the trading session as the desperate exit seekers paid no respect to the valuations thus keeping the ‘loss minimisation’ on top priority.

Foreign and local selling (mainly by the corporate) thereby never allowed the local equities to settle, cautious accumulation was however evident in the main board stocks mainly by the state fund and private sector institutions, which allowed the market a breather in post initial hours of trading.

Fierce selling however pushed the market further into the red zone as almost all the main board stocks witnessed lower locks.

Analysts, citing reasons for negative index, said they include fears on the outcome of the monetary policy to be announced on January 31, Pak-India relations and high liquidity cost remained major concerns.

Distressed selling by investors on liquidity issues and international equity markets’ situation together with less than expected results of listed companies forced the investors to offload investments at cheaper rates.

Mybank was the volume leader in the share market with 7.80 million shares as it closed at Rs 3.42 after opening at Rs 4.33 shedding 91 paisas. NIB Bank traded 7.45 million shares as it closed at Rs 4.41 after opening at Rs 4.54 shedding 13 paisas. PTCL traded 7.04 million shares as it closed at Rs 13.01 after opening at Rs 14.00 losing 99 paisas. OGDC traded 6.63 million shares as it closed at Rs 46.93 after opening at Rs 49.40 losing Rs 2.47. Zeal Pak traded 4.94 million shares as it closed at 48 paisas after opening at Rs 47 paisas making a financial gain of one paisa.

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