Tuesday, April 6, 2010

Stock Exchange Updates - - Profit Selling by Investors Cause Karachi Stock Market Slipped Slightly

KARACHI - The Karachi stock market slipped slightly on Tuesday amid profit selling by investors after recent gains.

The Karachi Stock Exchange’s benchmark 100-share index, which opened in the green zone with a gain of 32.09 points, ended 0.27 percent, or 28.02 points, lower at 10,419.82.


Volume rose to 244.07 million shares from 221.95 million traded on Monday.

Healthy buying was witnessed in the early day, pushing the index to an intraday high of 10,554.52 points, before investors opted for profit selling.

The KSE 30-index closed at 10661.88 with a loss of 45.43 points. The KMI 30-index closed at 15797.95 with a loss of 69.55 points. All shares index closed at 7334.49 with a loss of 18.20 points. Trading activity was better as compared to the last trading session as the ready market volume stood at 244.706m as compared to last trading session’s 222.521m. Future market volume, however, stood at 12.004m shares as compared to 7.410m shares of last trading session.
Market capitalization stood over Rs2.948tr, as total trades increased to 108,711 as compared to last trading session’s 103,306, while 184 companies advanced, 215 declined and 22 remained unchanged.

Highest volumes were witnessed in LOTPTA at 62.934m closed at Rs12.75 with a gain of Rs0.63 followed by ANL at 18.029m closed at Rs12.56 with a loss of Rs0.32, NBP at 17.358m closed at Rs72.25 with a gain of Rs1.31.

Ahsan Mehanti at Shehzad Chamdia Securities said, “Limited foreign interest, investors concern on non-availability of leverage products & high leverage cost played a catalyst role in negative activity despite positive sentiment in the banking sector on high banking spreads ahead of March quarter results announcements.”

The news that affected the trading activities at the market were: Cabinet to clear SBP Amendment Bill today, FBR not satisfied with LTUs, RTOs work, OGDCL ordered to pay Rs390m royalty, and PSO decides not to accord exclusivity.

Hasnain Asghar Ali at Aziz Fida Hussein said, “Recommendation to stay cautious therefore continues as stocks fulfilling the criteria of safe investments still exist, while expensive stocks can only be looked for short term trading, with identified stop losses, at least till various concerns on economy are addressed, and CGT led adjustment is done away with.”

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