Weekend considerations forced the day traders at Karachi Stock Exchange to book available profits, eroding the share values, but support from financial institutions averted larger decline.
The KSE-100 index showed a decline of 6.94 points, or 0.15 percent, to 4762.37 as compared with 4769.31 of Thursday. The volume moved up and settled at 472 million shares against 484 million shares. Market capitalisation slipped to Rs 1.245 trillion from Rs 1.248 trillion.
The market at the end of the first session closed on a positive note as short covering surfaced in pivotals such as D.G. Khan Cement, Dewan Salman, PIAC, NBP and Pak PTA.
However, during the second session day traders sold their holdings in order to book available profits, which dragged the KSE-100 index into minus.
The victims following the selling pressure were PTCL, OGDC, Sui Southern Gas, Sui Northern Gas, Nestle and Dawood Hercules, losing in the range of Rs 14 to 15 paisa per share.
Hasnain Asghar of Aziz Fidahusein said that the healthy talks on the Kashmir issue and news of fresh round of talks with the neighbour on all outstanding issues re-fuelled the bulls and the index registered yet another high of 4792, showing an increase of 22 points.
Last-day 'phobia' and withdrawal of funds from COT market did invite intra-day adjustment. Support at 4750 allowed the index to consolidate around 4763-4770.
The upcoming board meetings of the leading stocks announced for next week may invite fresh activity in the main stocks for both trading and placements, thereby indicating heavy volumes and volatility. Seven-day COT on January 27, however, stays a matter of concern.
It is, therefore, recommended to wait for volumes on strength as technical adjustment might allow tempting opportunities.
Technically, the index will continue to find support at 4745-4752 while overhead resistance stays at 4797-4804.
Tariq Hussain Khan, manager research of Live Securities, said that the market remained choppy as it moved in both directions on account of continued profit-taking by small investors resulting in a minus close towards the end of the day.
Small investors took advantage of inflated levels and started offloading their positions in blue-chip items that affected badly as the market slipped to negative column.
The major contributing factor of pruning was the uncertainty among the investors due to expected increase in COT rates.
"We expect that the market would breach its historical barrier of 5000 level within a month. Though the small investors squared their short-term positions towards the end of the session, we remain optimistic from Friday's range as it depicted positive signs for long-term stability."
D.G. Khan Cement closed at Rs 48.50, showing a gain of 75 paisa on business of 64.859 million shares; Dewan Salman recorded an increase of Rs 1.60 to Rs 23.30 on volume of 50.644 million shares; PIAC moved up to Rs 23.15 from Rs 22.30 on turnover of 46.519 million shares; FF Bin Qasim lost 10 paisa to Rs 20.10 on trading of 37.954 million shares; and Sui Northern Gas closed at Rs 55.65, ie lower by Rs 1.75 on total deals 25.525 million shares.
Comments
Comments are closed.