KSE down again as volumes shrink 36 per cent

KARACHI: The Karachi stock market closed in the negative on Wednesday as equities failed to sustain the gains witnessed on Tuesday. The inconclusive result of the meeting between the Securities and Exchange Commission of Pakistan (SECP) and the Karachi Stock Exchange (KSE) coupled with revised estimates of damage caused by the floods forced investors to remain cautious.

“Pakistan equities lost some of yesterday’s gains as the meeting between the regulator and brokers ended on an inconclusive note while the market had bet on a concrete announcement,” according to Sibtain Mustafa from Elixir Securities.

The KSE’s benchmark 100-share index fell by 77.67 points to close at 9,735.38.

A turnover of 52.25 million shares was recorded, almost 36 per cent less than the 82 million shares traded on Tuesday.

“The market opened on a negative note and remained in the red zone throughout the day,” highlighted Muzammil Mussani from JS Global Capital.

Shares of 333 companies were traded. At the end of the day, 129 stocks closed higher while 179 declined and 25 remained unchanged. The value of the shares traded during the day was approximately Rs1.29 billion.

Pakistan State Oil stock gained approximately 1.6 per cent to close at Rs252.58 per share amid rumours of a breakthrough between oil marketing companies and the Federal Board of Revenue on the turnover tax issue, according to dealers.

PTCL led the market with a trade volume of 7.37 million shares. The scrip shed Rs0.61 to close at Rs18.07 per share.

DGK Cement followed with 5.57 million shares traded. The company’s stock climbed more than four per cent to close at Rs25.40 per share.

Lotte Pakistan PTA remained amongst the market leaders but on the third position with a turnover of 3.26 million shares.

Published in The Express Tribune, September 2^nd, 2010.