Selling pressure continued at the Karachi share market on Monday and the KSE-100 index lost another 83.28 points to close at 11,878.38 points while the KSE-30 index declined by 123.98 points and settled at 13,728.54 points. The market started on a negative note and remained in the red zone throughout the session.
Trading activity improved as the ready market volume increased to 16.879 million shares as compared to 5.348 million shares traded previously. The futures market turnover, however, declined to 2.166 million shares against 2.937 million shares previously.
The overall market capitalisation declined by Rs 23 billion to Rs 3.667 trillion. Trading took place in 166 scrips, out of which 125 scrips closed in the negative and only 18 scrips closed in the positive while the value of 23 scrips remained unchanged.
Bank Al Falah was the overall volume leader of the day with 4.476 million shares however it lost Rs 0.39 to close at Rs 39.46. NBP and NIB shares declined by Rs 1.43 and Rs 0.10 to close at Rs 141.70 and Rs 10.83 respectively. DG Khan Cement and Dandot Cement decreased by Rs 0.64 and Rs 0.21 to close at Rs 63.87 and Rs 21.27 respectively.
Dynea Pakistan was the only scrip in the top ten volume leaders which closed in the positive at Rs 22.85, up by Rs 2.03. Pace (Pak) Limited closed at the same level of Rs 28.06 without any change. SSGC declined by Rs 0.26 to close at Rs 26.71. OGDC lost Rs 1.20 to close at Rs 119.52. Nishat Mills decreased by Rs 0.82 to close at Rs 81.78.
Dadex Eternit and Al Abbas Sugur were the biggest gainers and gained Rs 9.77 and Rs 8.00 to close at Rs 107.55 and Rs 91.50 respectively while Jahangir Siddiqui Co and PSO were the worst losers and lost Rs 5.08 and Rs 4.16 to close at Rs 503.80 and Rs 411.91 respectively.
Ahsan Mehanti at Shehzad Chamdia Securities said that selling activity continued at the share market as discount rate hike expectations, rupee depreciation crises and law and order situation in the country affected the market sentiment badly. The SCRA balances at negative $10 million reflect outflow from the local market.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that the vocal support failed to support in the local market, adding to the nervousness was certainly a constant weakness of the local currency. Although KSE did witness an increase in the turnover as compared to the previous sessions, but the relative increase in CFS "bid" side proved that the turnover was mainly to transform the holdings to CFS.
The much awaited date July 15, the day, for review of lower locks is being propagated as the day of execution, as a majority feels that if the locks are adjusted to the previous limits of 5 percent the stuck ups might get an exit, while some feel that it is the flow of positive developments on economic and political front that should be awaited before placing the lower locks limit at the previous levels. Stability of currency should therefore be awaited for taking fresh positions in the local equity markets. ENDS.