Selling pressure pushes down KSE index

26 Mar, 2008

Although the Karachi share market started on a positive note on Tuesday and the KSE-100 index hit highest-ever 15,296.78 points intra-day high for the first time in its history, it could not sustain that level as the market participants opted for profit taking on available margins due to some regulatory issues regarding implementation of CFS Mk-II.
"The market participants remained cautious and preferred to offload their holdings due to a meeting between SECP chairman and KSE members regarding implementation of CFS Mk-II, scheduled to be held on Tuesday," analysts said.
The selling pressure dragged the market into negative zone and finally the KSE-100 index closed at 15,122.76 points level, down by 59.62 points while the KSE-30 index declined by 64.54 points to settled at 18,444.83 points level on Tuesday.
The market witnessed dull trading activity as the ready market volume declined to 215.919 million shares as compared to 260.023 million shares traded a day earlier. The futures market turnover, however slightly increased to 73.050 million shares against 68.556 million shares previously.
The overall market capitalisation declined by Rs 19 billion to Rs 4.618 trillion. Trading took place in 352 scrips, out of which 193 scrips closed in negative and 121 closed in positive while the value of 38 scrips remained unchanged.
The CFS investment remained near its upper cap of Rs 55 billion at Rs 54.29 billion as compared to Rs 54.16 billion while the CFS rate increased by 16bps to 11.6 percent against 11.4 percent. WorldCall Telecom was the overall market volume leader with 16.448 million shares however the scrip lost Rs 0.05 to close at Rs 17.30.
The banking sector remained active as the BoP, JS Bank and MCB Bank surged by Rs 1.30, Rs 0.85 and Rs 4.55 to close at Rs 66.95, Rs 20.00 and Rs 400.05 respectively. Azgard Nine performed well and gained Rs 0.40 to close at Rs 62.00 with 14.144 million shares.
In cement sector, DG Khan Cement and Lucky Cement declined by Rs 2.25 and Rs 2.45 to close at Rs 110.05 and Rs 138.20 respectively. OGDC lost Rs 1.25 to close at Rs 138.20. Fauji Fertiliser Bin Qasim declined by Rs 0.55 to close at Rs 45.65. Arif Habib Sec 0.85 to close at Rs 26.60.
Wyeth Pak and Unilever were the highest gainers and gained Rs 105.00 and Rs 48.00 to close at Rs 2340.00 and Rs 2400.00 respectively while Colgate Palmolive and Pak Engineering were the highest losers and lost Rs 30.00 and Rs 18.00 to close at Rs 610.00 and Rs 347.00 respectively.
Jibran Jamal, analyst at Live Securities said that uncertainty about CFS Mk-II created pressure in the market and the index dipped in the red zone to touch 15,102.51 points intra-day low level. Overall, the index moved in the range of 194.27 points. Other factors, which drove the market lower were rumours about increase in gas prices, decline in crude oil prices in the international market and latest fertiliser off-take figures, which generated activity in related scrips. Subsequently, activity was witnessed in specific scrips contrary to Monday's broad market activity.

Read Comments