Market watch: Profit-taking continues at local bourse
KSE-100 index falls 55.79 points.
KARACHI:
The stock market fell on Thursday as investors preferred to book profits ahead of the new year, according to analysts.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.47 per cent or 55.79 points lower at 11,792.83.
State-owned funds were said to be sellers in heavyweights, which restricted the index’s upward movement, said JS Global Capital analyst Murtaza Jafar.
Volumes continued to decline as 91 million shares were traded, compared with Wednesday’s 93.9 million shares. Activity was mostly limited to third tier stocks.
Institutional investors reportedly sold shares of Pakistan Oilfields, Pakistan Petroleum Limited and National Bank of Pakistan.
“Concern over delay in International Monetary Fund’s next loan tranche for economic support, rising inflation and a possible widening of fiscal deficit resulted in bearish sentiment,” said Arif Habib Investments Limited Director Ahsan Mehanti.
The government has formally asked for a nine-month extension of its $11.3 billion bailout package, said a source involved with IMF talks, but the extension has not been approved yet.
Analysts said an extension meant that the possible release of the sixth tranche could also be delayed, meaning the government would have to borrow more from the central bank.
Because of emergency flood expenses and a decrease in foreign aid inflow, government borrowing from the central bank rose to a provisional Rs324.64 billion from July 1 to December 11 compared with Rs106 billion borrowed in the same period last year.
Government borrowing from the central bank can fuel inflation because it increases money supply. It can also lead to further widening of the fiscal deficit as the government spends more than its revenue.
Shares of 404 companies were traded on Thursday. At the end of the day, 165 stocks closed higher, 220 declined and 19 remained unchanged. The value of shares traded during the day was Rs4.33 billion.
Azgard Nine was the volume leader with 8.82 million shares gaining Rs0.43 to finish at Rs10.09. It was followed by Hub Power Company with 4.75 million shares losing Rs0.84 to close at Rs36.73 and Fatima Fertiliser with 4.73 million shares falling Rs0.18 to close at Rs9.39.
(ADDITIONAL INPUT FROM REUTERS)
Published in The Express Tribune, December 24th, 2010.
The stock market fell on Thursday as investors preferred to book profits ahead of the new year, according to analysts.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.47 per cent or 55.79 points lower at 11,792.83.
State-owned funds were said to be sellers in heavyweights, which restricted the index’s upward movement, said JS Global Capital analyst Murtaza Jafar.
Volumes continued to decline as 91 million shares were traded, compared with Wednesday’s 93.9 million shares. Activity was mostly limited to third tier stocks.
Institutional investors reportedly sold shares of Pakistan Oilfields, Pakistan Petroleum Limited and National Bank of Pakistan.
“Concern over delay in International Monetary Fund’s next loan tranche for economic support, rising inflation and a possible widening of fiscal deficit resulted in bearish sentiment,” said Arif Habib Investments Limited Director Ahsan Mehanti.
The government has formally asked for a nine-month extension of its $11.3 billion bailout package, said a source involved with IMF talks, but the extension has not been approved yet.
Analysts said an extension meant that the possible release of the sixth tranche could also be delayed, meaning the government would have to borrow more from the central bank.
Because of emergency flood expenses and a decrease in foreign aid inflow, government borrowing from the central bank rose to a provisional Rs324.64 billion from July 1 to December 11 compared with Rs106 billion borrowed in the same period last year.
Government borrowing from the central bank can fuel inflation because it increases money supply. It can also lead to further widening of the fiscal deficit as the government spends more than its revenue.
Shares of 404 companies were traded on Thursday. At the end of the day, 165 stocks closed higher, 220 declined and 19 remained unchanged. The value of shares traded during the day was Rs4.33 billion.
Azgard Nine was the volume leader with 8.82 million shares gaining Rs0.43 to finish at Rs10.09. It was followed by Hub Power Company with 4.75 million shares losing Rs0.84 to close at Rs36.73 and Fatima Fertiliser with 4.73 million shares falling Rs0.18 to close at Rs9.39.
(ADDITIONAL INPUT FROM REUTERS)
Published in The Express Tribune, December 24th, 2010.