KARACHI: The Karachi stock market closed lower on Tuesday as the cut in discount rate of 100 basis points by the central bank, as anticipated by the investors, was insufficient to reduce the borrowing cost at the market.
The Karachi Stock Exchange (KSE) 100-share index shed 68.34 points or 0.86 percent to close at 7,834.14 points as compared to 7,902.48 points of the previous session. The KSE 30-share index lost 101.85 points and closed at 8,600.31 points as compared with 8,702.16 points. The KMI 30 index also decreased by 37.43 points to close 10,024.58 points as against 10,987.15 points.
Analysts also said that investors preferred to go for profit-taking following less than expected result announcement by Pakistan Oil Fields. The 100-share index, despite opening on a positive note by gaining 97.78 points, failed to sustain its buoyant mood and closed in the negative zone.
The turnover increased by 26.67 percent to 320.33 million shares as compared with previous session’s 252.88 million shares. The overall market capitalisation declined by 0.72 percent to close at Rs 2.338 trillion as compared to Rs 2.355 trillion. Out of total 355 companies, 152 closed in positive zone, 193 in negative, while 10 remained unchanged. Analysts said foreign downpour and absence of leverage window never allowed the market to cherish the decline of 100bps in discount rate that has reduced KIBOR as well. The market, already trading with clipped potential that has reduced the local capacity of pricing the stocks to the multiple of 6-6.5 times of the earnings, continues to stay sensitive to any moves initiated to increase the input cost or reduce profitability of the corporate sector.
Corporate results coming in are either in line with the expectations or have been above expectations, thus allowing aggressive activity after breathers. The benchmark had a tough task sustaining above the psychological level of 8,000 points, the rising political temperatures and news of unrest in the city added pressure to the negativity and the index failed to sustain the positive momentum and landed in the negative zone.
The KSE 100 index opened in the green zone with a gain of 97.78 points but at the end of the trading session closed at 7,834.14 points with a loss of 68.34 points. Bank Alfalah was the volume leader in the share market with 33.67 million shares as it closed at Rs. 14.60 from its opening at Rs 14.77 losing 17 paisas. Fauji Cement traded 29.40 million shares as it closed at Rs 7.50 after opening at Rs 6.90 gaining 60 paisas.
The Karachi Stock Exchange (KSE) 100-share index shed 68.34 points or 0.86 percent to close at 7,834.14 points as compared to 7,902.48 points of the previous session. The KSE 30-share index lost 101.85 points and closed at 8,600.31 points as compared with 8,702.16 points. The KMI 30 index also decreased by 37.43 points to close 10,024.58 points as against 10,987.15 points.
Analysts also said that investors preferred to go for profit-taking following less than expected result announcement by Pakistan Oil Fields. The 100-share index, despite opening on a positive note by gaining 97.78 points, failed to sustain its buoyant mood and closed in the negative zone.
The turnover increased by 26.67 percent to 320.33 million shares as compared with previous session’s 252.88 million shares. The overall market capitalisation declined by 0.72 percent to close at Rs 2.338 trillion as compared to Rs 2.355 trillion. Out of total 355 companies, 152 closed in positive zone, 193 in negative, while 10 remained unchanged. Analysts said foreign downpour and absence of leverage window never allowed the market to cherish the decline of 100bps in discount rate that has reduced KIBOR as well. The market, already trading with clipped potential that has reduced the local capacity of pricing the stocks to the multiple of 6-6.5 times of the earnings, continues to stay sensitive to any moves initiated to increase the input cost or reduce profitability of the corporate sector.
Corporate results coming in are either in line with the expectations or have been above expectations, thus allowing aggressive activity after breathers. The benchmark had a tough task sustaining above the psychological level of 8,000 points, the rising political temperatures and news of unrest in the city added pressure to the negativity and the index failed to sustain the positive momentum and landed in the negative zone.
The KSE 100 index opened in the green zone with a gain of 97.78 points but at the end of the trading session closed at 7,834.14 points with a loss of 68.34 points. Bank Alfalah was the volume leader in the share market with 33.67 million shares as it closed at Rs. 14.60 from its opening at Rs 14.77 losing 17 paisas. Fauji Cement traded 29.40 million shares as it closed at Rs 7.50 after opening at Rs 6.90 gaining 60 paisas.
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