Skip to main content

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.

Comments

Popular posts from this blog

SECP initiates 86 show-cause proceedings against compamies

The SECP’s Enforcement Department— while enforcing compliance of corporate and allied laws— initiated 86 show-cause proceedings and concluded 54 proceedings against chief executives, directors and auditors of companies in February and March. While facilitating companies to strengthen their capital base, the department allowed three listed companies to issue shares by way of otherwise than right at a discount and at par.  In order to strengthen the existing regime of Corporate Social Responsibility (CSR) reporting, the SECP has joined hands with the ICAP for the external assurances of the CSR reports.  CSR reports assist organizations in understanding and communicating their vision of combining a company’s profitability with social responsibility and environmental care. Both the SECP and the ICAP have reaffirmed their commitment to developing a framework for external assurance in accordance with prominent international assurance standards, and within a mutually agreed time f

Chairman SECP Reaffirms Commitment to Facilitate Businesses

The Securities and Exchange Commission of Pakistan (SECP), as part of its efforts to promote ease of doing business through meaningful stakeholder engagement, held an interactive virtual session with representatives of Overseas Investors Chambers of Commerce & Industry (OICCI).   The session was chaired by the Chairman SECP, Aamir Khan, who briefed the participants about recent improvements in the regulatory ecosystem and highlighted some key changes, including introduction of digital certificate of incorporation, creation of special portal for banks to facilitate account opening, digitization of account opening process for resident and non-residents for investment in the capital market etc. These reforms have greatly improved efficiency of processes, which have been duly reflected in country’s global rankings.   During the session, the Chairman apprised the OICCI’s representatives about SECP’s future endeavors in this regard to simplify regulatory requirements, reduce compliance c

THK Associates (Private) Limited: Shares Registrar

THK Associates (Pvt) Limited was formed in 1989. The company is engaged in providing specialized services relating to the corporate sector and in particular acts as share transfer agent for a number of companies. THK Associates (Pvt) Limited is one of the leading service provider of Share Registrar, Transfer Agent, Balloters for IPO’s and Share Accounting Services and is managed and run by a set of professionals having indepth knowledge and expertise of organizing and managing diversified corporate activities including depository related Share Registrar activities. THK Associates (Pvt) Limited, previously an associate of KPMG Taseer Hadi & Co., has been restructured in terms of requirements of Clause XL of the Code of Corporate Governance and the shareholding of THK partners has been divested in the year 2004. Mr. Yunus Dawood, Chief Executive of DYL Motorcycle Limited, a shareholder and Director was appointed as Chairman of the Company in 2008. Mr. Javed Iqbal, former Chairman an