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Karachi stocks shed 59 points as investors opt for profit-taking

KARACHI: The Karachi stock market closed in the negative territory on Tuesday as investors went for profit-taking due to strengthening of the dollar, which weakened the commodities prices and oil prices falling below $79 per barrel in the international market.

The Karachi Stock Exchange (KSE) 100-share index declined by 58.81 points or 0.63 percent to close at 9,315.69 points as compared to the previous session’s 9,374.50 points. The KSE 30-share index closed at 9,829.49 points with a loss of 93.85 points. The KMI 30 index closed at 13,419.36 points with a loss of 46.69 points.

Analysts said that the market was buoyant since the start of the trading session making substantial gains initially, but intense selling pressure during later part of the trading session dragged the market into the red zone.

The market turnover went down by 15.18 percent and traded 166.34 million shares as compared with the previous session’s 196.11 million shares. The overall market capitalisation went down by 1.25 percent trading Rs 2.696 as against previous session’s Rs 2.713 trillion. Out of total 405 companies, 165 closed in the positive zone, 221 in negative and 19 remained unchanged.

“After two consecutive days of bullish momentum, the market witnessed profit-taking and closed with a meagre decline,” said analyst at Topline Sec Furqan Punjnani. “During the trading session investors offloaded some of their positions due to halt in the rally of crude oil in the international markets.”

Furthermore selling pressure across the Asian markets also shook the investor’s confidence to take new positions in the market. “Foreign selling in banks, telecom and correction in global equity markets on weaker outlook played a catalyst role in the negative activity,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

“Positive opening was although attained, on back of rising trend in the international oil prices and dollar inflow reported from the previous session, said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “Turnover stayed on the lower side as the local participants looked more focused on the dollar-based activity,”

Anticipation-led rally in oil and gas exploration stocks allowed the market to manage triple digit gains, he said and added that banking sector witnessed off loading while cement and fertilizer stocks sustained decent rise. The KSE 100-share index opened in green zone with a gain of 72.27 points and at the end of the day closed at 9,315.69 points with a loss of 58.81 points.

Pak PTA Ltd was the volume leader in the share market with 24.69 million shares as it closed at Rs 6.33 after opening at Rs 6.69 shedding 36 paisas. staff report

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