KSE loses 12 points

Staff Report

KARACHI: Buying for the last two days caused profit-taking and the May 1 holiday caused the investors to square up their positions at the Karachi stock market on Wednesday. This pushed the KSE-100 index down 12 points or 0.42 per cent to 2,902.42 as against 2,914.62.

“A 41-points jump during the previous sessions was enough to call profit-taking,” said Junaid Shaharyar, equity trader at the BMA Capital Management brokerage house.

In addition, the 16 points’appreciation in the early trading hours increased pressure on the market, which switched to selling by the investors.

Another reason for the downward trend at the stock market was news that the oil prices would fall.

“The news that oil prices would decline and auto-sector prices would fall today propelled investors to square up positions,” said Muhammad Sohail, a trader at Invest Capital Research brokerage.

However, the total volume increased by 15 per cent, from the previous 171 million shares to 203 million shares.

Hubco was on top of the volume leaders’list with 42 million shares traded. It lost 10 paisas to close at Rs 34.75. PTCL was second with 27 million shares. It declined 15 paisas to close at Rs 24.60. Sui Northern Gas was third with 22 million shares, losing 30 paisas to close at Rs 27.15. However, Pak PTA managed to gain 35 paisas to close at Rs 9 with its 21 million shares trade.

Arif Yousuf Saya, a stockbroker at the KSE, said the upcoming budget, in the second week of June, and expected progress on Indo-Pakistani talks could result in a strong rally next week.

The closing of the market above 2900 points is a strong indication that the index may try for the 3000 points level on Friday, said Haji Farhan, an equity dealer at Mooosani Securities brokerage.

The major gainers of the day were Parke Davis and Wyeth Pak for making Rs 50 at 716.75 and Rs 49 at 900. The major losers were Hino Pak Motors which lost Rs 5.20 to close at 98.80 and Shell Pak which lost Rs 5 at 376.

At the futures contract, out of 14 companies, four booked profits while ten suffered losses in a total turnover of 31 million contracts.

Hubco, on nine million contracts, lost 5 paisas to close at Rs 34.90. PTCL lost 10 paisas to close at Rs 24.75. PSO lost Rs 1.45 to close at Rs 206.50 with 5 million contracts.

Faisal Rajabali, director of the Ali Hussain Rajabali and Co brokerage house, said the stock market would certainly touch the 3000 points level by the middle of next week, since timely correction during an upward rally helps the market to prevent heavy profit-taking in the end.

Technical analyst Saad-Bin-Naseer at Sherman Securities brokerage said the resistance level for the index would be 2,940 points, and that it would get support at 2,875. Investors are waiting for the next week in order to make fresh buying, but usually selling pressure remains at 2900 points.

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