Profit-Takers Tear Over 1pc off Karachi Stock Exchange (KSE)

KARACHI: Profit-booking by the local investors recalled bears at Karachi Stock Exchange (KSE) Tuesday which lost over 1 per cent despite buying by the foreign investors while uncertainty on the political front intensified the selling pressure.
The benchmark KSE 100-Index declined by 99.33 points or 1.07 per cent to close at 9,204.98 levels, KSE 30-Index plunged by 117.31 points or 1.19 per cent to end at 9,704.24 levels, whereas KSE All Share Index dropped 69.14 points or 1.05 per cent to finish the day at 6,526.77 levels.

The Financial Daily here that the stock prices after appreciating 4 per cent in previous two trading sessions plunged mainly due to profit-taking by investors. Uncertainty on the political front forced institutions and individual investors to remain on the selling side while an anticipated cut in discount rate failed to change the mood of investors.

The day started on a positive note with a gain of 45 points; then till around the mid-day market showed volatile activities moving in both the territories where at about 0951 PST it touched its highest level of the day of 9,360 points (+ve 55 points). But then due to the fact that market was witnessing a continuous upward movement; local investors went for booking profits with worrisome political situation over the NRO issue increased the pressure therefore selling mainly in oil, banking and fertiliser sectors finally took the market into the red-zone. Therefore despite foreign buying, index during the last minute of the session touched its lowest level of the day of 9,187 points (-ve 116 points).

Though market ended on a negative note, but foreign investors remained on the buying side as according to the National Clearing Company of Pakistan Limited (NCCPL) figures, there was a net foreign buying of $4.48 million. On the other hand local companies, banking and individuals did a net selling of $3.10, $1.16 and $1.42 million respectively while mutual funds did a net buying of $1.36 million.

Volumes also remained low as 184 million shares were traded in the overall market which is 16.6 million shares less as compared to a turnover of 196.6 million shares Monday.

Experts are of the view that political stability, peaceful law and order situation and reduction in interest rates would be the factors that could trigger the market in the coming days. It should be noted that State Bank of Pakistan would announce its monetary policy on November 24, 2009.