KARACHI: The Karachi stock market fell on Wednesday in choppy trade as lower than expected result announcement by PSO propelled investors to offload their holdings.
The Karachi Stock Exchange (KSE) 100-share index shed a massive 259.97 points or 3.32 percent to close at 7,574.17 points as compared to 7,834.14 points in the previous session. The KSE 30-share index fell 333.90 points and closed at 8,266.41 points as compared with 8,600.31 points. The KMI 30 index also slumped 358.09 points to close at 10,666.49 points as against 11,024.58 points.
Analysts said another factor that led to the bearish trading session was serving of a legal notice to a major blue chip bank that led to selling in bank stocks.
The market turnover declined by 29.17 percent and traded 226.88 million shares as compared to previous session’s 320.33 million shares. The overall market capitalisation fell by 3.16 percent to close at Rs 2.264 trillion as compared with Rs 2.338 trillion traded in the previous session. Out of total 348 companies, 77 closed in positive zone, 257 in negative, while 14 remained unchanged.
Analysts said the shallow market continued to witness erosion as foreign downpour invited local offloading, thereby leading to a steep decline with low turnover. The sectors likely to continue the growth however invited accumulation at bottom levels and the decline could not be avoided.
Clipped potential (due to absence of ready board leverage) proved fatal as the local liquidity failed to absorb the foreign selling. The extended decline and absence of triggering news have left the investors with no choice but to sell for cost lowering. Absence of corporate buyers was certainly felt as with the exception of some, a majority of local participants continued to practice the strategy of ‘neither to sell at upper locks, nor to buy at lower locks’. It has been observed in the post-CFS elimination scenario that reliance on strength of buyers and sellers has increased.
Brokers said investors remained concerned over continuation of foreign selling in the market, international equity markets turmoil and less than expected results in blue chips. The KSE 100 index opened in the green zone with a gain of 2.18 points and at the end of the day closed at 7,574.17 points with a loss of 259.97 points.
Maple was the volume leader in the share market with 14.45 million shares as it closed at Rs 5.08 after opening at Rs 5.58 losing 50 paisas. Bank Alfalah traded 13.95 million shares as it closed at Rs 13.88 from its opening at Rs 14.60 losing 72 paisas. UBL traded 13.12 million shares as it closed at Rs 50.61 as against its opening at Rs 50.76 shedding 15 paisas. Lucky Cement traded 12.97 million shares as it closed at Rs 60.80 as compared to its opening at Rs 58.84 gaining Rs 1.96.
The Karachi Stock Exchange (KSE) 100-share index shed a massive 259.97 points or 3.32 percent to close at 7,574.17 points as compared to 7,834.14 points in the previous session. The KSE 30-share index fell 333.90 points and closed at 8,266.41 points as compared with 8,600.31 points. The KMI 30 index also slumped 358.09 points to close at 10,666.49 points as against 11,024.58 points.
Analysts said another factor that led to the bearish trading session was serving of a legal notice to a major blue chip bank that led to selling in bank stocks.
The market turnover declined by 29.17 percent and traded 226.88 million shares as compared to previous session’s 320.33 million shares. The overall market capitalisation fell by 3.16 percent to close at Rs 2.264 trillion as compared with Rs 2.338 trillion traded in the previous session. Out of total 348 companies, 77 closed in positive zone, 257 in negative, while 14 remained unchanged.
Analysts said the shallow market continued to witness erosion as foreign downpour invited local offloading, thereby leading to a steep decline with low turnover. The sectors likely to continue the growth however invited accumulation at bottom levels and the decline could not be avoided.
Clipped potential (due to absence of ready board leverage) proved fatal as the local liquidity failed to absorb the foreign selling. The extended decline and absence of triggering news have left the investors with no choice but to sell for cost lowering. Absence of corporate buyers was certainly felt as with the exception of some, a majority of local participants continued to practice the strategy of ‘neither to sell at upper locks, nor to buy at lower locks’. It has been observed in the post-CFS elimination scenario that reliance on strength of buyers and sellers has increased.
Brokers said investors remained concerned over continuation of foreign selling in the market, international equity markets turmoil and less than expected results in blue chips. The KSE 100 index opened in the green zone with a gain of 2.18 points and at the end of the day closed at 7,574.17 points with a loss of 259.97 points.
Maple was the volume leader in the share market with 14.45 million shares as it closed at Rs 5.08 after opening at Rs 5.58 losing 50 paisas. Bank Alfalah traded 13.95 million shares as it closed at Rs 13.88 from its opening at Rs 14.60 losing 72 paisas. UBL traded 13.12 million shares as it closed at Rs 50.61 as against its opening at Rs 50.76 shedding 15 paisas. Lucky Cement traded 12.97 million shares as it closed at Rs 60.80 as compared to its opening at Rs 58.84 gaining Rs 1.96.
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