KARACHI: The Karachi stock market witnessed a bearish trading week due to political unrest in the country as the Sri Lankan cricket team was attacked in Lahore followed by elevating concerns from the IMF regarding Pakistan’s ability to achieve set targets, analysts said on Saturday.
Analysts said unabated cycle of selling pressure at the market continued taking its toll during the outgoing week as investors remained concerned over political instability in the country along with hectic political activities expected in March in the wake of the scheduled long march on the 16th.
The Karachi Stock Exchange (KSE) 100-share index shed 20.64 points or 0.36 percent to close at 5,748.10 points as compared to 5,727.46 points of the previous week.
The average turnover in the ready market was recorded at 104 million shares, manifesting a decline of 16 percent as compared with previous week’s 123 million shares.
Analysts said the KSE 100-share index exhibited high volatility in intraday trading during the week, declining to a low of 5,505 points on Wednesday and rising to a level of 5,924 points a day later.
The market was however, supported by increase in fertiliser prices leading to a rally being witnessed in the sector. The market was injected by positive trend with an increase in the deemed duty for oil refineries by the Ministry of Petroleum impacting the refineries’ bottom lines.
The increase in power tariff of 6 paisas per kwh was a noteworthy occurrence during the week, though it had a dual impact, it raised concerns amongst key industries regarding further increase in cost of production, while on the macro-economic front it was conceived as a step toward resolution of the circular debt issue.
Brokers said volumes remained largely under pressure amid political uncertainty as rumblings between political parties continued after the imposition of governor’s rule in Punjab last week. Moreover, attack on Sri Lankan cricket team further dented investor’s confidence. Volumes stood at 104 million shares or $44 million as against already thin volumes of 123 million shares or $50 million last week depicting a decline of 15.6 percent. Moreover, CFS investment stood at Rs 707 million with an average annualised rate of 14.59 percent.
Refinery sector was the top performer in the outgoing week amid better expected earnings in 2HFY09 due to absence of inventory losses. Moreover, the decision of increasing deemed duty on diesel from 7.5 percent to 10 percent also attracted investor’s interest as this measure is expected to further improve their earnings. Similarly, fertiliser sector also performed strongly on the back of increase in urea prices by Rs 20 to Rs 690 per bag. Hence, market capitalisation of refinery and fertiliser sectors increased by 13 percent and 2 percent respectively against a decline of 1 percent in total market capitalization, which closed at $22 billion.
Analysts said unabated cycle of selling pressure at the market continued taking its toll during the outgoing week as investors remained concerned over political instability in the country along with hectic political activities expected in March in the wake of the scheduled long march on the 16th.
The Karachi Stock Exchange (KSE) 100-share index shed 20.64 points or 0.36 percent to close at 5,748.10 points as compared to 5,727.46 points of the previous week.
The average turnover in the ready market was recorded at 104 million shares, manifesting a decline of 16 percent as compared with previous week’s 123 million shares.
Analysts said the KSE 100-share index exhibited high volatility in intraday trading during the week, declining to a low of 5,505 points on Wednesday and rising to a level of 5,924 points a day later.
The market was however, supported by increase in fertiliser prices leading to a rally being witnessed in the sector. The market was injected by positive trend with an increase in the deemed duty for oil refineries by the Ministry of Petroleum impacting the refineries’ bottom lines.
The increase in power tariff of 6 paisas per kwh was a noteworthy occurrence during the week, though it had a dual impact, it raised concerns amongst key industries regarding further increase in cost of production, while on the macro-economic front it was conceived as a step toward resolution of the circular debt issue.
Brokers said volumes remained largely under pressure amid political uncertainty as rumblings between political parties continued after the imposition of governor’s rule in Punjab last week. Moreover, attack on Sri Lankan cricket team further dented investor’s confidence. Volumes stood at 104 million shares or $44 million as against already thin volumes of 123 million shares or $50 million last week depicting a decline of 15.6 percent. Moreover, CFS investment stood at Rs 707 million with an average annualised rate of 14.59 percent.
Refinery sector was the top performer in the outgoing week amid better expected earnings in 2HFY09 due to absence of inventory losses. Moreover, the decision of increasing deemed duty on diesel from 7.5 percent to 10 percent also attracted investor’s interest as this measure is expected to further improve their earnings. Similarly, fertiliser sector also performed strongly on the back of increase in urea prices by Rs 20 to Rs 690 per bag. Hence, market capitalisation of refinery and fertiliser sectors increased by 13 percent and 2 percent respectively against a decline of 1 percent in total market capitalization, which closed at $22 billion.
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