KARACHI (December 18 2008): Selling pressure continued at the Karachi share market on the third consecutive day after the removal of price floor and the benchmark KSE-100 index lost another 338.96 points (4.01 percent) to close at 8,105.63 points level on Wednesday. The index has declined by 1081.47 points (12.26 percent) during the last three trading sessions after the removal of the floor.
Most of the trading was witnessed in the second or the third tier companies while no major trading was seen in the main stocks, as the investors were still confused over the issue of actual price of the share at the moment, analysts said. Various blue chip shares remained available at the KATS throughout the session. However, they failed to attract buyers.
The trading volume improved as the ready market volume increased to 57.820 million shares as compared to 25.360 million shares traded a day earlier. The futures market turnover, however, declined to 1,500 shares against 3,500 shares on Tuesday.
The overall market capitalisation declined by Rs 98 billion to Rs 2.495 trillion. Trading took place in 161 scrips, out of which 142 scrips closed in the negative and only 14 scrips closed in the positive while the value of five scrips remained unchanged.
TRG Pakistan was the overall volume leader of the day with 14.945 million shares. However it declined by Re. 0.52 to close at Rs 1.30. Pakistan Cement lost Re. 1.00 to close at Rs 1.90 with 5.746 million shares. Zeal Pak gained Re. 0.13 to close at Re. 0.63 with 4.981 million shares. KESC increased by Re. 0.04 to close at Rs 1.85 with 4.378 million shares.
Orix Bank lost Re. 0.04 to close at Re. 0.88 with 4.202 million shares. Dewan Salman declined by Re. 0.04 to close at Rs 1.10 with 3.761 million shares. Telecard decreased by Re. 0.28 to close at Rs 1.66 with 2.386 million shares. PIA lost Re. 0.15 to close at Rs 2.10 with 2.202 million shares. Nimir Ind Chemical gained Re. 0.13 to close at Rs 1.31 with 2.199 million shares.
Ismail Industries and Nimir Reinsurance were the highest gainers and gained Rs 2.05 and Re. 0.34 to close at Rs 43.18 and Rs 3.73 respectively while Pak Services and Pak Engineering were the worst losers and lost Rs 26.43 and Rs 15.32 to close at Rs 502.24 and Rs 291.24 respectively.
Hasnain Asghar Ali at Aziz Fidahusein & Co said that the penny stocks, however, continued to address the turnover as the chances of quick buck and management take-over at cheaper rates have kept the liquid opportunity seekers active thereby depicting the short memory participants have, the main board dividend yielding stocks, however, continued to look for buyers as due to the hangover from CFS, threat of heavy selling in the stocks placed with financial institutions as collateral and higher chances that the large cap stocks would be the first to be sacrificed in case of redemption, the potential buyers awaited the last episode of the never ending soap.
Increase in the desired rate of return due to the events in the economy on the other hand have further reduced the fair values of the main board stocks. Upcoming events, such as State Bank's view on the interest rate and the next budget likely to carry increase in the prevailing tax rates and introduction of new taxes, will certainly keep the potential investors indecisive about the future course of actions. The struggling rupee value during the period will most probably influence the decisions.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment