Pakistan's KSE down amid cautious trade

08:03, June 29, 2010      

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Bearish pressures overwhelmed the trading proceedings at Pakistan's Karachi Stock Exchange (KSE) in Karachi Monday as investors remained wary of the government's stance on imposition of the Capital Gains Tax (CGT).

The benchmark KSE 100-Index declined by 1.28 percent or 125.30 points to close at 9,671.55 levels, KSE 30-Index fell by 1.57 percent or 151.96 points to conclude at 9,510.19 levels, whereas the KSE All Share Index slumped by 1.23 percent or 84.31 points to finish the day at 6,766.37 levels.

Turnovers continued to lose numbers as trading of only 81.464 million shares traded hands during the day which are 7.697 million shares less when compared with Friday's turnovers of 89.161 million shares.

The market got off to a positive start in the morning as the index crossed the 9,800 mark and continued the upsurge before the main index went on to hit the highest level of the day of 9,859.54.

However, after touching the intraday high, the market witnessed some dull trading as the main index shed most of the gains and in the second half it plunged into the red ink where towards the dying moments, it went on to hit the intraday low level of 9,656. 33 before closing just a little higher.

Syed Faran Rizvi, Director SMH Financial Solution told this scribe that in the absence of major triggers, the market is likely to remain rangebound.

He further stated, "Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close)."

While advising the investors, Syed Faran Rizvi said that traders are recommended to buy and order their stop at the levels of 9,669.

Earlier in the day, the country's finance minister visited the KSE for the first time since taking reigns of the ministry. During the visit, he said that efforts are afoot to improve the country's economic situation.

During his visit, the finance minister called on KSE members besides assuring them of government instant measure made it clear that role of private sector is of immense importance in reviving the national economy.

However, Hafiz Sheikh didn't clearly talk about the CGT imposition which gave an indication that there's no change in government's stance in this regard.

Dealers said that the visit of the finance minister did nothing to improve market sentiments as uncertainties over the CGT imposition remain.

In broader market, a total of 425 scrips changed hands during the course of the day where losing numbers outnumbered the surging ones with a ratio of 279 to 114 whereas prices of 32 other shares stayed unchanged.

Source: Xinhua


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