Investors offloaded their holdings at the Karachi Stock Market

KARACHI: Investors offloaded their holdings at the Karachi stock market on the first trading day of the week Monday due to uncertainty on the National Reconciliation Ordinance issue and cautiousness over lower than 100 basis points cut in the upcoming monetary policy, which is expected to deteriorate investor confidence.

The Karachi Stock Exchange (KSE) 100-share index shed 84.40 points or 0.91 percent to close at 9,221.96 points as compared to the previous session’s 9,306.36 points. The KSE 30-share index closed at 9,741.21 points with a loss of 84.69 points. The KMI 30 index closed at 13,474.72 points with a fall of 102.87 points.

Analysts said the market started the day’s proceedings on a negative note and this trend prevailed throughout the session. Daily volumes traded during the session were dismal touching 5-month low reflecting lack of confidence among investors.

The market turnover went down by 45.79 percent and traded 76.07 million shares as compared with previous session’s 140.32 million shares. The overall market capitalisation went down by 0.93 percent and traded Rs 2.661 trillion as against Rs 2.686 trillion. Out of total 372 companies, 96 closed in the positive zone, 260 in negative and 16 remained unchanged.

“The upcoming Eidul Azha holidays also restricted investors from taking fresh positions with overall volumes at 5-month low,” said Topline Securities analyst Furqan Punjani. “Bearish trend was witnessed as political uncertainty increased over lapse of the NRO,” said Shahzad Chamdia Securities senior analyst Ahsan Mehanti. “Uncertainty over the monetary policy review, fall in international oil prices and investor concern over circular debt issue affecting oil refineries cash flows were the other reasons for the negative sentiment.”

“Shallow market continued to face offloading mainly in the main board stocks having reservations on revenue and payout streams by the local participants, as depleting turnover forced an early sell-off,” said Aziz Fida Husein and Co analyst Husnein Asghar Ali. “Absence of buyers on intervals forced low volume price erosion in the expensive stocks and the market went tumbling down in early hours.”

The KSE 100-share index opened in the red zone with a loss of 1.26 points and at the end of the day closed at 9,221.96 points with a loss of 84.40 points.

Bank Alfalah was the volume leader in share market with 15.46 million shares as it closed at Rs 14.26 after opening at Rs 14.27, shedding one paisa. Nishat (Chunian) Ltd traded 5.07 million shares as it closed at Rs 16.72 from its opening at Rs 16.20, gaining 52 paisas. staff report

Source: http://www.dailytimes.com.pk/default.asp?page=2009\11\24\story_24-11-2009_pg5_30