Bears invade KSE
Friday''s 0.36 percent decline marked the completion of a weeklong bearish trend on Karachi Stock Exchange. The benchmark KSE-100 index lost another 119 points to close at 32,960.27 points compared to 33,079.37 points Thursday. Barring Monday, foreign portfolio investment remained negative throughout the week with net selling of offshore investors accumulating to $13.52 million. Friday''s outflows stood at $6.398 million.
Copyright Business Recorder, 2015
"Stocks fell sharply amid cautious activity on uncertainty in global equities," said Ahsan Mehanti of Arif Habib Corp. Support was witnessed in banking stocks after $800 million Government-ADB deals, the analyst said. The day''s catalyst, Mehanti cited included political uncertainty, concerns over foreign outflow and a likely impact of Rs 40 billion new tax measures by the government on the earnings outlook for auto, fertiliser and oil sector.
Compared to 140 million on Thursday, trading turnover depleted to 122 million shares valuing down to Rs 6.26 billion. Of the 346 scrips traded, 131 posted gains, 193 lost their worth while 22 remained unchanged. The market capitalisation kept contracting to stand at Rs 6.99 trillion from Rs 7.01 trillion a day earlier. SSGC was the most traded issue with 16.2 million shares. The gas utility dipped to Rs 43.06 at close. Other best performing stocks were Pak Elektron 13.3 million, TRG Pakistan 10.3 million, SNGPL 7.0 million, K-Electric 4.4 million, Ghani Gases 3.5 million, Bank of Punjab 3.2 million, Pace Pakistan 2.8 million, Pervez Ahmed 2.5 million and Silk Bank 2.4 million shares. Trade in future contracts remained healthy at 77.29 million against 59.92 million of last trading day. "Selling pressure continued at the KSE today as investors trimmed their positions," viewed Topline analyst Mohammad Rizwan. Fertiliser sector remained in the limelight as both local and foreigner investors feared further drop in international urea prices that they think would impact local manufacturers'' margins, he said.