Stocks plummet 289 points
Stocks tumbled on Monday closing marginally above the crucial 10,000-point level.
Stocks tumbled on Monday closing marginally above the crucial 10,000-point level, dealers said.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 2.8 per cent, or 289 points, lower at 10,045.07 on turnover of 35.2 million shares.
Selling was mainly triggered by weekend comments by Chairman KSE expressing concern over the proposed leverage product and rumours of a possible delay in introduction of margin trading system, said Elixir Securities equity dealer Nazim Abdul Muttalib.
Moreover, market concerns over flood-related damage to crops, most importantly cotton, and impact on corporate earnings led to the decline, added Muttalib.
Trade volumes increased to 80 million shares compared with Friday’s tally of 55.9 million shares.
Further correction is likely from current levels as the market remains extremely sensitive to leverage product related news, said JS Global Capital analyst Ahmed Rauf.
Moreover, developments on damage caused by floods are likely to remain the focus in the coming days, he added.
Shares of 375 companies were traded on Monday. At the end of the day, 78 stocks closed higher, 284 declined and 13 remained unchanged. The value of shares traded during the day was Rs3.8 trillion.
Hub Power Company (Hubco) was the outlier for the day, rising by 1 per cent after announcing better-than-estimated annual results.
The company announced Rs5.5 billion net profit for fiscal year 2010 which resulted in the stock price strengthening Rs0.33 to close at Rs35.25.
Pakistan State Oil (PSO) received heavy battering after the assessment of the impact of turnover tax revealed by PSO management. The company’s stock price fell 5 per cent to end at Rs258.34.
Lotte Pakistan PTA was the volume leader with 4.4 million shares losing Rs0.39 to finish at Rs7.62. It was followed by Hub Power Company with 3.9 million shares and Pakistan Petroleum Limited with 3.2 million shares losing Rs6.87 to close at Rs202.34.
Published in The Express Tribune, August 10th, 2010.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 2.8 per cent, or 289 points, lower at 10,045.07 on turnover of 35.2 million shares.
Selling was mainly triggered by weekend comments by Chairman KSE expressing concern over the proposed leverage product and rumours of a possible delay in introduction of margin trading system, said Elixir Securities equity dealer Nazim Abdul Muttalib.
Moreover, market concerns over flood-related damage to crops, most importantly cotton, and impact on corporate earnings led to the decline, added Muttalib.
Trade volumes increased to 80 million shares compared with Friday’s tally of 55.9 million shares.
Further correction is likely from current levels as the market remains extremely sensitive to leverage product related news, said JS Global Capital analyst Ahmed Rauf.
Moreover, developments on damage caused by floods are likely to remain the focus in the coming days, he added.
Shares of 375 companies were traded on Monday. At the end of the day, 78 stocks closed higher, 284 declined and 13 remained unchanged. The value of shares traded during the day was Rs3.8 trillion.
Hub Power Company (Hubco) was the outlier for the day, rising by 1 per cent after announcing better-than-estimated annual results.
The company announced Rs5.5 billion net profit for fiscal year 2010 which resulted in the stock price strengthening Rs0.33 to close at Rs35.25.
Pakistan State Oil (PSO) received heavy battering after the assessment of the impact of turnover tax revealed by PSO management. The company’s stock price fell 5 per cent to end at Rs258.34.
Lotte Pakistan PTA was the volume leader with 4.4 million shares losing Rs0.39 to finish at Rs7.62. It was followed by Hub Power Company with 3.9 million shares and Pakistan Petroleum Limited with 3.2 million shares losing Rs6.87 to close at Rs202.34.
Published in The Express Tribune, August 10th, 2010.