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Profit-taking in main board stocks claims 30 points at KSE


KARACHI: The Karachi stock market continued to face selling pressure on Thursday as investors went for profit-taking in fertiliser and gas and exploration stocks.

The Karachi Stock Exchange (KSE) 100-share index decreased by 30.07 points or 0.55 percent to close at 5,399.36 points as compared with 5,429.43 points traded in the previous session. The KSE 30 index also lost 34.92 points and closed at 5,398.63 points as compared to 5,433.55 points of the previous session. The KMI 30 index gained 62.70 points to close at 7,163.62 points as against 7,100.92 points of the previous session.

The market turnover went down by 45.33 percent and traded 89.79 million shares as compared to 164.27 million shares traded in the previous session. The overall market capitalisation fell 0.75 percent and closed at Rs 1.700 trillion as against Rs 1.713 trillion traded in the previous session. Out of 262 companies, 92 closed in positive zone, 155 in negative while 15 remained unchanged.

Analysts said confusion regarding IAS39 and the rumour of increase in CVT on purchase of shares was to some extent subsided by the positive step initiated by SECP, the formation of a committee for review of CFS MK-II (the only product offering leverage in the ready board), and with a positive frame of mind like defying the efforts for exclusion of the well developed product. The committee will also forward recommendations for introduction of new hedging tools mainly for forward markets.

The unsettled issues have impacted the trading volumes at the local bourses, dips, however, continued to invite accumulation in the main board stocks, mainly in fertiliser and oil and gas exploration stocks.

Dips in the privileged stocks (those that have the support of the state fund) invited the local participants, as the funds activity on daily basis has been fruitful for traders.

Analysts said uncertainty over IAS39 implementation on listed companies and high liquidity costs remained major concerns despite the fact that NIT State Enterprise Fund continued to support the market while selling activity in international equity markets affected investors’ sentiment at the local bourse. The KSE 100 index opened in the red zone with a loss of 23.04 points and at the end of the day closed at 5,399.36 points with a loss of 30.07 points. OGDC, for the fifth consecutive trading session, was the volume leader in the share market with 8.00 million shares as it closed at Rs 48.94 after opening at Rs 49.32 shedding 38 paisas.(DT)

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