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Foreign selling, falling rupee keep stocks in red zone, KSE dips 105 pts


Intense selling activity kept the Karachi stock market under the bearish spell on the second trading day of the week Tuesday besides widening of trade deficit and fall in remittances in April 2009.

Analysts have attributed negative closing of the market on account of continuing foreign selling while Swat operation intensity and falling rupee value remained a major concern for retail and institutional investors. The trading day was marked by yet another dismal turnover of 75 million shares manifesting lack of confidence among investors.

The Karachi Stock Exchange (KSE) 100-share index shed 105.00 points or 1.46 percent as it closed at 7,067.85 points compared to 7,172.85 points in the previous session.

The KSE-30 index also shed 142.18 points and closed at 7,601.17 points compared to 7,743.35 points of the previous session. KMI-30 index shed 156.82 points and closed at 10,092.46 points compared to 10,249.28 points of the previous session.

The market turnover went down by 31.94 percent and traded 75.07 million shares as compared to previous session’s 110.31 million shares. The overall market capitalisation went down by 1.40 percent and closed at Rs 2.106 trillion compared to Rs 2.136 trillion traded in the previous session. Out of total 320 companies, 101 closed in positive zone, 203 in negative while 16 remained unchanged.

Hasnain Asghar Ali, analyst at Aziz Fida Husein and Co attributed negative closure of the market to dull activity led to low volume adjustment.

All this with availability of main board stocks at attractive levels failed to allow local bourses to perform, further delay in realising the identified reason of this lacklustre will certainly disappoint even the seasoned participants, making available ready board leverage tool is essential for the market to perform and perform at its potential, deliberate delay might cause irreparable damage.

Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said uncertainty over taxation on capital market in federal budget 2009 and unfavorable week on week inflation figures played a catalyst role in continuing fall in the market.

The KSE 100 Index opened in the green zone with a gain of 24.55 points and at the end of the day closed at 7167.85 with a loss of 105.00 points.

All shares index closed at 5075.96 with a loss of 71.58 points. Trading activity was worst as compared to the last trading session as the ready market volume stands at 63.500 million as compared to last trading session 110.312 million.

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