Profit-booking pulls KSE down
The benchmark KSE-100 index shed 69 points to close at 10,635 on Thursday.
KARACHI:
Equity prices tapered off slightly at the Karachi Stock Exchange (KSE) on Thursday as investors chose to book profits.
The benchmark KSE-100 index shed 69 points to close at 10,635. The broader market mirrored sentiments that influenced the benchmark index. Out of 407 companies that were actively traded, share prices of 176 advanced, 209 declined and 22 remained unchanged.
“Intense profit-taking emerged as the World Bank and Asian Development Bank enhanced their estimates from flood losses to $16 billion,” said director Arif Habib Investments Ehsan Mehanti.
However, other analysts pinned the decline in share prices to reasons closer to home. “Most of the results announced today (Thursday) including Engro, Fauji Fertiliser, Adamjee Insurance and United Bank were slightly below expectations, that is why investors preferred to trim their positions,” asserted Topline analyst Samar Iqbal.
Trade volumes declined for a second consecutive day to just under 110 million shares. A day earlier, 142 million shares were traded while on Monday 150 million shares had changed hands. Total value of shares traded stood at Rs3.8 billion compared to Rs4.19 billion the previous day.
National Bank led the volumes as 12 million of its shares changed hands. Lotte Pakistan recorded volumes of 11.3 million shares while Nishat Power saw trading in 7.9 million shares.
Analysts observed that interest in new independent power projects of different companies has attracted attention of investors.
Stock prices have rallied in five of the last seven trading sessions and experts are eyeing resistance close to 10,800 points.
BMA analyst Nurali Barkatali highlighted that “apart from the National Bank, activity in other major stocks continued to remain subdued.”
“Overall behaviour hints at short-term correction, though a few stocks do indicate further potential. Broad-based interest is required for a sustained rally,” added the analyst.
Published in The Express Tribune, October 29th, 2010.
Equity prices tapered off slightly at the Karachi Stock Exchange (KSE) on Thursday as investors chose to book profits.
The benchmark KSE-100 index shed 69 points to close at 10,635. The broader market mirrored sentiments that influenced the benchmark index. Out of 407 companies that were actively traded, share prices of 176 advanced, 209 declined and 22 remained unchanged.
“Intense profit-taking emerged as the World Bank and Asian Development Bank enhanced their estimates from flood losses to $16 billion,” said director Arif Habib Investments Ehsan Mehanti.
However, other analysts pinned the decline in share prices to reasons closer to home. “Most of the results announced today (Thursday) including Engro, Fauji Fertiliser, Adamjee Insurance and United Bank were slightly below expectations, that is why investors preferred to trim their positions,” asserted Topline analyst Samar Iqbal.
Trade volumes declined for a second consecutive day to just under 110 million shares. A day earlier, 142 million shares were traded while on Monday 150 million shares had changed hands. Total value of shares traded stood at Rs3.8 billion compared to Rs4.19 billion the previous day.
National Bank led the volumes as 12 million of its shares changed hands. Lotte Pakistan recorded volumes of 11.3 million shares while Nishat Power saw trading in 7.9 million shares.
Analysts observed that interest in new independent power projects of different companies has attracted attention of investors.
Stock prices have rallied in five of the last seven trading sessions and experts are eyeing resistance close to 10,800 points.
BMA analyst Nurali Barkatali highlighted that “apart from the National Bank, activity in other major stocks continued to remain subdued.”
“Overall behaviour hints at short-term correction, though a few stocks do indicate further potential. Broad-based interest is required for a sustained rally,” added the analyst.
Published in The Express Tribune, October 29th, 2010.