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Karachi stocks witness profit-taking, index sheds 53.35 pts

KARACHI: The Karachi stock market witnessed a bearish trading session on Friday as investors went for profit-taking.

Analysts said that the 100-share index failed to sustain its positive momentum on the last trading day of the week despite opening in the green zone amid high liquidity cost and limited availability of CFS, which remained a major concern for investors.

The Karachi Stock Exchange (KSE) 100-share index shed 53.35 points or 0.89 percent to close at 5,969.09 points as compared to 6,022.44 points traded in the previous session. The KSE 30 index also lost 118.44 points and closed at 6,132.50 points as compared with 6,250.94 points of the previous session. The KMI 30 index decreased by 204.42 points to close at 7,875.11 points as against 8,079.53 points of the previous session.

The market turnover fell 16.17 percent and traded 229.95 million shares as compared to 235.73 million shares traded in the previous session. The overall market capitalisation decreased by 0.85 percent and closed at Rs 1.859 trillion as against Rs 1.875 trillion traded in the previous session. Out of 272 companies, 110 closed in the positive zone, 75 in negative while 16 remained unchanged.

Analysts said positive momentum continued during the wee hours of trade, however, from thereon the profit seekers, mainly those who have been accumulating from early 5,000 points level, arrested the early gains, oil and gas exploration and fertiliser stocks stayed the main victims of the downpour undertaken by both high net worth and corporate participants. The privileged stocks however continued to display strength on the roar that a lot is still available in the kitty (with the state fund) thus disallowing unprecedented decline. Banking stocks, however, led the show after yet another leading bank of the sector HBL came up with an exceptional announcement mainly on the payout front.

Another feature that will continue to invite buyers in the market is the fact that the banking sector has abided by the regulation of routing 100 percent impairment through P&L, thus assuring the investors of no horrifying surprises in the coming quarters, as is being anticipated.

Last day phobia overpowered the events and the index, despite increased participation, failed to avoid negative numbers and the benchmark closed below 6,000 points. Although various issues responsible for inviting clouds of uncertainty have been addressed the fact that the trend followers are large in numbers while initiators’ number was thoroughly displayed. Absence of leverage tool in the ready board and terrifying past has still forced majority of the participants to follow the trend. Brokers said that the growing pressure on Pakistan for Swat peace deal and continued foreign selling remained an issue for long-term investors.

The KSE 100 index opened in the green zone with a gain of 2.16 points and at the end of the day closed at 5,069.09 points with a loss of 53.35 points. OGDC was the volume leader in the share market with 13.70 million shares as it closed at Rs 55.34 after opening at Rs 55.86 shedding 52 paisas. staff report

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