bearish activity at Karachi Stock Market on rising political uncertainty

First trading day at the Karachi Stock market was marked by prevalence of bearish activity on rising political uncertainty after government coalition partner MQM decided to boycott sessions of National & Sindh Assembly.

Analysts said in their comments that range bound activities dominated market proceedings with index failing to maintain 12,000 pts level during the session.

The Karachi Stock Exchange (KSE) 100-share index shed 25.48 pts or 0.21 percent closing at 11, 974.55 pts compared to 12,000.03 pts in the previous session. The KSE -30 index also shed 26.26 pts closing at 11,690.41 compared to 11,716.67 pts of the previous session. KMI-30 index shed 78.18 pts and closed at 19,813.83 pts compared o 19,892.01 of the previous session. The KSE- all shares index closed with a loss of 17.97 pts closing at 8,311.52 compared to 8,329.49 pts of the previous session.

The market turnover went down by 37.62 percent and traded 116.94 million shares compared to 187.49 million shares of the previous session. The market capital went down by 0.21 percent and traded Rs 3.226 trillion compared to Rs 3.233 trillion traded in the previous session. Losers beat gainers 162 to 121 margin while 85 stocks remained unchanged.

“Bearish activity witnessed in overbought market on rising political uncertainty after government coalition partner MQM decides to quit and boycott sessions of National & Sindh Assembly,” said Ahsan Mehanti, Director Arif Habib Investment Ltd. Fall in global capital markets on unrest in Libya & Middle east, concerns for rising circular debt in Pakistan energy sector played a catalyst role in negative activity in the earnings announcement session despite rising global commodity prices, renewed foreign interest in blue chip scrips, brent crude over $118.

Husnein Asghar Ali, analyst at Aziz Fida Husein and Co. said the local bourse was indeed a ‘tug of war” amongst the local financial groups, some supported bulls, on likely availability of leverage and its positive impact on valuation of various main board stocks, along with anticipation of inflow through off-shore channels while others, those included financial institutions, surfaced as major sellers as they thoroughly capitalised on the recent rise in political temperatures, along with alarming economic and financial issues, likely repercussion of the cold diplomatic ties with US, and that off worsening situation in Arab countries.

Initial gains soon came under pressure due to massive sell-off in high priced stocks, already struggling to sustain the attained levels mainly due to absence of follow-up supported, decline in dividend yielding, and various mid-tier stocks was however capitalised by the liquid participants, thus offering some respite to the melting benchmark, that under went a volatility of 256 points, thus providing various short term trading opportunities, low volumes however depicted absence of wider participation.

Lotte Pakistan PTA was the volume leader in the share market with 17.76 million shares as it closed at Rs 15.57 after opening at Rs 15.98 shedding 41 paisas. Fauji Fert Bin Qasim traded 10.30 million shares as it closed at Rs. 43.11 after opening at Rs 42.69 gaining 42 paisas. JS Bank Ltd. traded 6.97 million shares as it closed at Rs 3.10 after opening at Rs.3.03 gaining 07 paisas. NBP traded 6.32 million shares as it closed at Rs 79.16 after opening at Rs 80.57 shedding Rs 1.41. (Daily Times)

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