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Negative measures drag Karachi stock market 60 points down

KARACHI: Investors continued to offload their holdings at the Karachi stock market on Wednesday on concerns of high leverage cost, delay in implementation of margin financing products and the pending issue of the National Reconciliation Ordinance.

The Karachi Stock Exchange (KSE) 100-share index shed 60.22 points or 0.65 percent to close at 9,144.76 points as compared to the previous session’s 9,204.98 points. The KSE 30-share index closed at 9,644.53 points with a loss of 59.71 points. The KMI 30 index closed at 13,309.44 points with a decline of 18.84 points.

Analysts said closure of cement plants on lower cement prices in the country also had a negative impact on the trading activity. The market opened on a positive note, but the uncertain political situation in the country and unabated debate regarding NRO and its impact on the present set up pushed it into the negative zone. The market turnover went down by 12.00 percent and traded 161.93 million shares as compared with the previous session’s 184.03 million shares. The overall market capitalisation went down by 0.63 percent and traded Rs 2.640 trillion as against its previous session’s Rs 2.657 trillion. Out of total 392 companies, 139 closed in the positive zone, 235 in negative and 18 remained unchanged.

“Foreign interest was witnessed in the previous two sessions coupled with some stability on the political front after Pakistan Muslim League-Nawaz chief Nawaz Sharif’s positive statements forced the index to open in green zone,” said analyst at Topline Sec Furqan Punjani. “However, later on during the session indication of foreign selling in index heavy weight drove the market into the red zone.” Some support was seen in the textile and high dividend yielding stocks amid hope of reduction in T–bill yields. Limited expectations of significant cut in discount rate and rising circular debt between oil marketing companies and oil refineries played a catalyst role in the negative activity,” said senior analyst at Shahzad Chamdia Sec Ahsan Mehanti.

The KSE 100-share index opened in the green zone with a gain of 16.82 points and at the end of the day closed at 9,144.76 points with a loss of 60.22 points.

Pak PTA Ltd was the volume leader in the share market with 25.66 million shares as it closed at Rs 7.66 after opening at Rs 7.58, gaining eight paisas. PTCL traded 15.36 million shares as it closed at Rs 17.83 from its opening at Rs 18.32, losing 49 paisas. Nishat Mills traded 13.84 million shares as it closed at Rs 66.46 as against its opening at Rs 64.86, surging Rs 1.60. OGDC traded 12.40 million shares as it closed at Rs 107.10 as compared to its opening at Rs 106.08, rising Rs 1.02. staff report

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