Dull trading at Karachi stock market as floor stays
KARACHI: The Karachi stock market witnessed a dull trading session on the first trading day of the week Monday due to staying of floor mechanism on account of lack of funds availability for NIT managed fund to bailout the market, analysts said.
The Karachi Stock Exchange (KSE) 100-share index remained unchanged at 9,182.88 points. The KSE 30 index and KMI 30 index also remained unchanged at 10,003.99 points and 11,224.18 points respectively.
The market turnover declined 10.57 percent and traded 0.249 million shares as compared to 0.279 million shares traded in the previous session. The overall market capitalisation gained 0.03 percent to Rs 2.830 trillion as compared with Rs 2.829 trillion of the previous session. Out of 24 companies, two closed in the positive zone, five in negative while 17 remained unchanged.
Husnein Asghar Ali, Analyst at Aziz Fida Husein and Company said desperate attempts to delay floor mechanism from hitting the KSE; has undoubtedly given birth to various speculations.
If the freezing is lifted, an immediate dip of 25-30 percent is expected and from there onwards it will move with the economy, but certain developments over the weekend indicate, unprecedented decline would surface a more dreadful sight.
Pleading for special session at a discount of 12.5 percent and that too before the market’s opening is aggravating likely consequences of an unprecedented decline, thereby compelling the participants to believe in rumours. On the other hand reluctance of the government fund to pick up the offers at market price and adopt the ‘bargain hunting’ strategy to ensure the new fund is marketed overseas is not allowing the vacuum to be filled.
Ahsan Mehanti, Analyst at Shahzad Chamdia Securities said investors remained concerned over global equity market correction, local economic conditions and uncertainty over Pakistan’s move towards IMF programmes.
Falling Foreign Exchange reserves and declining rupee’s value coupled with foreign selling were other major factors forced investors to keep to the sidelines.
Al-Abbas Cement was the volume leader in the share market with .150 million shares as it closed at Rs 6.55 after opening at Rs 6.55 with no change in its value. Trust Modarba traded 0.26 million shares as it closed at Rs 1.35 after opening at Rs 1.35 with no change in its value. Gharibwal Cement traded 0.16 million shares as it closed at Rs 17.98 after opening at Rs 17.23 making a financial gain of 85 paisas. Highnoon (Lab) traded 0.10 million shares as it closed at Rs 39.20 after opening at Rs 39.20 with no change in its value. National Assets traded 0.10 million shares as it closed at Rs 0.43 after opening at Rs 0.45 losing two paisas.
No trading activity was observed in the futures market. staff report