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Karachi stocks close in the red zone with low volume


KARACHI: The Karachi stock market wore a dull outlook on the first trading day of the week Monday as investors kept to the sidelines on fears that foreign selling may have a major impact on share prices.

Analysts said the 100-share index, despite opening on a positive note failed to maintain its buoyant mood closing in the negative zone.

The Karachi Stock Exchange (KSE) 100-share index shed 2.62 pts or 0.04 percent to close at 6,892 points as compared to 6,894.62 points of the previous trading session. The KSE 30-share index decreased by 23.06 points and closed at 7,291.05 points as compared with 7,314.11 points. However, the KMI 30 index gained 56.03 pts to close at 10,305.21 points as against 10,249.18 points.

Analysts said lacklustre activities prevailed in the market, which is evident from the poor turnover of 96 million shares witnessed during the trading session. The market turnover went down by 22.90 percent and traded 96.41 million shares as compared to previous session’s 125.06 million shares. The overall market capitalisation remained unchanged at Rs 2.045 trillion. Out of the total 292 companies, 138 closed in positive zone, 140 in negative, while 14 remained unchanged.

Dull activities prevailed in the market over fears that foreign selling may affect share prices, which is why positive news from Qadirpur pricing failed to improve investors sentiments, said analyst at Topline Sec Sohail Ahmad.

Positive inputs regarding upcoming budget and highlights of the upcoming trade policy kept the valuations at the local bourses attractive as value-buying in the main board stocks initially allowed the index a decent gain, low turnover and absence of ready board however disallowed follow-up support, which lead to stagnation and then price erosion, said analyst at Aziz Fida Husein and Co Husnein Asghar Ali.

Expectations of an early resolve on the issue of low turnover did tempt the seasoned and high net worth participants to improve buying limits restricting any major fall. Massive erosion towards the closing stages never allowed the market men to resist high tides as foreign downpour in the over-valued banking stocks kept the sector under pressure, he added. Commenting on the future market trend, he said availability of main board stocks at extreme discounts (trading well below conservative fair values), may stage a swift recovery so it is recommended to capitalize on extreme declines in the main board stocks of the banking sector and that of other sectors.

The KSE 100-share index opened in the green zone with a gain of 27.97 points and at the end of the day closed at 6,892.00 points with a loss of 2.62 points.

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