Market watch: Index closes in the red for third straight session

Across-the-board selling pulls down KSE-100 index 325 points.

KARACHI: After showing exceptional performance last week, the Karachi bourse opened the week bleeding red as across the board selling in absence of major institutional support pulled the market down 325 points. This is the third consecutive session where the market has closed down.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 1.53% or 324.91 points to end at 20,958.86 point level. Trade volumes fell to 235 million shares compared with Friday’s tally of 361 million shares.

Pakistan Muslim League-Nawaz’s apprehensions terming reports of a $15 billion Saudi oil facility for Pakistan as a mere speculation tempted investors to bank profits near all-time highs, said Harris Batla of Elixir Securities.



“Mainly led by Muslim Commercial Bank, the Fauji Fertilizer Company and Pakistan State Oil index fell by more than 300 points with low volumes,” reported Samar Iqbal, head of equity sales at Topline Securities. “Pressure in regional markets coupled with concerns of the rollover week kept investors away,” Iqbal added.

PSO, oil and power sector who would have been the major beneficiaries of the bailout package lost ground and made investors cautious as to how massive debts of the country would be met.

The energy sector enslaved by the spiralling out of control circular debt faced the brunt of selling along with the financial sector.

Shares of 350 companies were traded on Monday. At the end of the day 80 stocks closed higher, 237 declined while 33 remained unchanged. The value of shares traded during the day was Rs6.71 billion.

Bank of Punjab(R) – trading rights issue shares – was the volume leader with 47.39 million shares losing Rs0.01 to finish at Rs2.28. It was followed by Bank of Punjab – all listed shares – with 20.66 million shares gaining Rs0.06 to close at Rs11.57 and Fauji Cement with 10.78 million shares falling Rs0.16 to close at Rs11.46.



Foreign institutional investors were buyers of Rs511 million and sellers of Rs241 million worth of equity, according to data maintained by the National Clearing Company of Pakistan.

Analysts expect volatility to continue in the coming days over a number of factors namely the International Monetary Fund programme and the Federal Budget 2013-14.

Published in The Express Tribune, May 28^th, 2013.

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