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KSE falls 176 points on uncertainty over MSCI November review decision

KARACHI: The Karachi stock market witnessed intense selling activities on the last trading day of the week Friday due to limited foreign interest and uncertainty over Morgan Stanley Capital International (MSCI) November review decision on the market.

The Karachi Stock Exchange (KSE) 100-share index declined by 175.62 points or 1.93 percent to close at 8,936.48 points as compared to the previous session’s 9,112.10 points. The KSE 30-share index closed at 9,396.44 points with a loss of 231.26 points. The KMI 30 index closed at 12,903.48 points with a loss of 229.68 points. Analysts said that the market continued to remain depressed. This is evident from the fact that the turnover was at three-month low.

The market turnover went down by 33.72 percent and traded 97.12 million shares as compared to previous session’s 146.55 million shares. The overall market capitalisation went down by 1.93 percent trading Rs 2.588 trillion as against previous session’s Rs 2.639 trillion. Out of total 388 companies, 131 closed in the positive zone, 238 in negative and 19 remained unchanged. “Mixed opening amid low turnover reinitiated low volume price erosion, and the market after initial resistance on back of index heavy weights, failed to sustain the pressure and went into the red zone,” said analyst at Aziz Fida Husein and Co Husnein Asghar Ali. “With local interest deteriorating mainly due to absence of positive triggers and unavailability of carryover mechanism, the dollar based activity was awaited, while the sell-off ahead of extended week -end continued mainly in the expensive stocks.” The analysts were of the view that the erratic activity by off-shore participants gives an idea that probably due to high impact cost and high chances of price erosion rapid inflows are being reported to build the sentiment for an easy exit. The stubborn investors are unlikely to get trapped as most of the activity is being done for short-term, with restricts losses, they added. “Investors remained concerned over ongoing political uncertainty and prevailing National Reconciliation Ordinance issue,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti. “However, post result announcements’ consolidation prevailed throughout the session.”

The KSE 100-share index opened in the green zone with a gain of 13.62 points and at the end of the day closed at 8,936.48 points with a loss of 175.62 points. Jah Siddi and Co was the volume leader in share market with 10.27 million shares as it closed at Rs 29.48 after opening at Rs 31.03, losing Rs 1.55. Arif Habib Sec traded 7.29 million shares as it closed at Rs 48.43 from its opening at Rs 50.32, shedding Rs 1.89. staff report

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