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WEEKLY
SECTIONS |
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| KSE declines 60 points in absence of buyers |
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Thursday, November 19, 2009
By our correspondent
KARACHI: The absence of local support on the Karachi bourse extended bearish-spell on the second consecutive day on Wednesday on rumours of foreign offloading in blue chips.
The KSE 100-share Index lost 60.22 points or 0.65 per cent to close at 9,144.76 points. The parallel running junior 30-Index shed more 59.71 points or 0.62 per cent and concluded at 9,644.53 points.
Analysts observed that overseas investors continued to build-up positions here contrary to the rumours that they were finding ways to exit these days. The continued absence of local investors (particularly the institutional), however, did not allow market to play positively amid ending fresh round of technical selling.
Foreigners injected another notable tranche of $6.18 million this session too, according to NCCPL.
Oil & Gas Development Company and MCB Bank closed positive column otherwise their decline would have pulled down the indices further bellow.
Participation from local investors remained thin either they were on selling side of the buying, as companies and Bank/DFIs ended trading with selling shares worth $1.63 million and $226 thousand, respectively.
Individual and NBFC bought shares with an aggregated amount of $1.58 million and $220 thousand, respectively.
Trading volume was 161.93 million shares against 184.03 million shares yesterday. Turnover in future market surged to record high at 4.64 million from 3.70 million shares yesterday. Market capitalisation further fell by Rs17 billion to Rs2,640 billion.
An analyst at Topline Securities said that foreign interest witnessed in two previous sessions coupled with some stability on political front after Nawaz Sharif’ positive statements pulled index to open in green zone. However later on indication of foreign selling in index heavy weight drove market into red zone. However, some support was seen in textile and high dividend yielding stocks amid hope of reduction in T-Bill yields.
In the afternoon, a considerable cut of 30 basis points in yield of one year treasury-bills to 12.21 per cent (the four months low) raised the hope of witnessing a reduction in central bank’s lending rate by 50-100 basis points.
This positive factor might trigger buying in the next session in those sectors, which are functioning with borrowed money from banks like cement and textile, analyst foresaw.
Aziz Fidahusein & Co reported that consistent dollar inflow failed to invite local support mainly due to reservations regarding payouts and revenues from the government companies. Although blame is on circular debt for decline in payout ratios and revenues, the local participants took a cautious stance.
Leading textile stocks continued to invite local activity mainly due to steps taken by EU on Chinese imports and growing prices of yarn in local and international markets, the brokerage house added.
Out of total 392 actives, 235 stocks declined, 139 stocks advanced, while the value of remaining 18 stocks remained unchanged.
Highest volumes were witnessed in Pak.PTA at 25.66 million closing at Rs1.66 with a gain of eight paisa, followed by Pakistan Telecommunication Company at 15.36 million closing at Rs17.83 with a loss of 49 paisa, Nishat Mills at 13.84 million closing at Rs66.46 with a gain of Rs1.60, Oil & Gas Development Company at 12.40 million closing at Rs107.10 with a gain of Rs1.02, and Fauji Fertilizer Bin Qasim at 12.05 million closing at Rs25.17 with a loss of 87 paisa.
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ISSN 1563-9479 
