KARACHI: Karachi stock market remained under bearish sentiments as the benchmark KSE-100 failed to maintain psychological level of 7,000 points on fourth trading day of the week Thursday.
The intense selling activities blanketed the trading session and analysts attributed negative closure of the market owing to rumours regarding additional taxation on capital market in the upcoming federal budget. “This affected the investors’ sentiment negatively amid a misquoted comment by State Information Minister on taxation of agriculture, stock market and real estate sectors”.
The Karachi Stock Exchange (KSE) 100-share index shed 90.90 points or 1.29 percent as it closed at 6,969.82 points compared to 7,060.72 points in the previous session.
The KSE-30 index also shed 108.06 points and closed at 7,484.10 points compared to 7,592.16 points of the previous session. KMI-30 index shed 99.38 points and closed at 10,017.32 points compared to 10,116.70 points of the previous session.
The market turnover went up by 38.59 percent and traded 111.46 million shares as compared to previous session’s 80.42 million shares. The overall market capitalisation went down by 1.38 percent and closed at Rs 2.067 trillion compared to Rs 2.096 trillion traded in the previous session. Out of total 312 companies, 70 closed in positive zone, 323 in negative while 10 remained unchanged.
Hasnain Asghar Ali, analyst at Aziz Fida Husein said various interpretations made by the minister regarding taxation added to the nervousness at the local bourses, which are already facing drought impact, after the elimination of ready board leverage, indeed the only reason for the lacklustre activity.
Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said reasons for negative index includes PM Advisor on Finance indication of GDP growth rate of 2-2.25 percent down from 3–3.5 percent on global recession and security situation in the country during federal cabinet meeting taken negative by investors. Other major factors included lack of CFS financing, uncertainty over taxation on capital markets, high liquidity cost and security situation in Swat played a catalyst role in negative sentiment prevailing in the market.
The KSE 100 Index opened in the red zone with a loss of 40.80 points and at the end of the day closed at 6969.82 with a loss of 90.90 points. KSE 30 index closed at 7484.10 with a loss of 108.06 points. KMI-30 index closed at 10017.32 with a loss of 99.38 points. Trading activity was better as compared to the last trading session as the ready market volume stands at 111.467 million as compared to last trading session 80.422 million.
The intense selling activities blanketed the trading session and analysts attributed negative closure of the market owing to rumours regarding additional taxation on capital market in the upcoming federal budget. “This affected the investors’ sentiment negatively amid a misquoted comment by State Information Minister on taxation of agriculture, stock market and real estate sectors”.
The Karachi Stock Exchange (KSE) 100-share index shed 90.90 points or 1.29 percent as it closed at 6,969.82 points compared to 7,060.72 points in the previous session.
The KSE-30 index also shed 108.06 points and closed at 7,484.10 points compared to 7,592.16 points of the previous session. KMI-30 index shed 99.38 points and closed at 10,017.32 points compared to 10,116.70 points of the previous session.
The market turnover went up by 38.59 percent and traded 111.46 million shares as compared to previous session’s 80.42 million shares. The overall market capitalisation went down by 1.38 percent and closed at Rs 2.067 trillion compared to Rs 2.096 trillion traded in the previous session. Out of total 312 companies, 70 closed in positive zone, 323 in negative while 10 remained unchanged.
Hasnain Asghar Ali, analyst at Aziz Fida Husein said various interpretations made by the minister regarding taxation added to the nervousness at the local bourses, which are already facing drought impact, after the elimination of ready board leverage, indeed the only reason for the lacklustre activity.
Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said reasons for negative index includes PM Advisor on Finance indication of GDP growth rate of 2-2.25 percent down from 3–3.5 percent on global recession and security situation in the country during federal cabinet meeting taken negative by investors. Other major factors included lack of CFS financing, uncertainty over taxation on capital markets, high liquidity cost and security situation in Swat played a catalyst role in negative sentiment prevailing in the market.
The KSE 100 Index opened in the red zone with a loss of 40.80 points and at the end of the day closed at 6969.82 with a loss of 90.90 points. KSE 30 index closed at 7484.10 with a loss of 108.06 points. KMI-30 index closed at 10017.32 with a loss of 99.38 points. Trading activity was better as compared to the last trading session as the ready market volume stands at 111.467 million as compared to last trading session 80.422 million.
Comments