KSE falls 99 points as investors book profits

Wednesday, November 18, 2009
By our correspondent

KARACHI: The Karachi stocks market invited profit-booking at the available margins on Tuesday, as it had risen by over six per cent to above 9,300 points in the last four consecutive bull-run sessions.

The KSE 100-share Index posted a decline of 99.33 points or 1.07 per cent and closed at 9,204.98 points. Its junior partner the 30-Index shed 117.31 points or 1.19 per cent and concluded at 9,704.24 points.

Analysts were of the view that the market was trying its best to consolidate somewhere above 9,000 points psychological level in the short-run while surging of it to the current resistance level of 9,300 points was sure to trigger profit-selling.

As far as the market talks about a small cut in central bank’s interest rate, and receive of funds form donor agencies and friends of Pakistan are concerned then market had already capitalized these events in advance till yesterday. So that market is needed fresh buying-triggering feelers to be projected to 9,500 points or above it, they added.

“Conflicting news regarding reduction in Oil & Gas Development Company’s (OGDC) output from Qadirpur field, and clarification from Warid Telecom saying that it was under no deal with Telenor to sell its stake to the latter were the two major setbacks for market. These two developments geared up the selling momentum and made market pro-buyers,” a leading analyst added.

The two index movers i.e. OGDC and MCB Bank contributed 16 points and 10 points in negative in the chief benchmark 100-Index. While many in energy, banking, fertilizer, cement, securities (investment), insurance, refinery, IPPs, textile and chemical sectors fell in red.

Despite of this all, the foreign portfolio investors remained prospect buyer of shares in this session too, as they freshly injected $4.48 million consecutively, according to NCCPL.

Local mutual funds and NCBC were the other two aggregated buyers with $1.36 million and $65 thousand, respectively.

On the contrary, local companies, Banks/DFIs and individual investors offloaded shares worth $3.10 million, $1.16 million and $1.42 million, respectively.

Accordingly, the overall market capitalisation decreased by Rs29 billion and stood at Rs2,657 billion.

The day turnover recorded at 178.03 million shares, which is slightly lower than 196.62 million shares changed hands yesterday. Turnover in future market increased to robust at 3.70 million from 2.96 million shares traded a day earlier.

Furqan Punjani at Topline Securities said that stock prices after appreciating above six per cent in the last four sessions plunged mainly due to profit taking by investors. Uncertainty on the political front forced institutions and individual investors to remain on the sell side while anticipated cut in discount rate also couldn’t change the mood of investors.

Hasnain Asghar Ali at Aziz Fidahusein said that increase in activity by the local corporate and off-shore participants infused confidence amongst other sidelined participants to leave the security concerns to the concerned authorities and capitalize discounts available at the equity market.

Out of total 402 actives, 241 stocks declined, 143 stocks advanced, while the value of remaining 18 stocks remained unchanged.

Highest volumes were witnessed in Pakistan Telecommunication Company at 25.59 million closing at Rs18.32 with a gain of 10 paisa, followed by Pak.PTA at 24.72 million closing at Rs7.58 with a gain of nine paisa, Nishat Mills at 15.33 million closing at Rs64.86 with a gain of 85 paisa, Azgard Nine at 8.21 million closing at Rs21.71 with a gain of 60 paisa, and Fauji Fertilizer Bin Qasim at 7.64 million closing at Rs26.04 with a gain of 63 paisa.