Pakistan KSE inches down as volumes hit low

09:09, April 26, 2011      

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Investors booked profits at higher levels as Pakistan's Karachi Stock Exchange (KSE) started a fresh week on the negative side here Monday with its main index losing slight value but volumes plunged to the lowest level of the current year.

The benchmark KSE 100-Index fell by 0.32 percent or 38.38 points to close at 11,916.02 levels, KSE All Share Index declined by 0.31 percent or 25.71 points to end at 8,297.07, KSE 30-Index slipped by 0.46 percent or 53.31 points to conclude at 11,555.03, whereas KMI 30-Index slipped by 0.47 percent or 95.45 points to finish the day at 20,175.14 levels here.

The market started the first trading session of the week amid a mixed trend where after an early buying, investors sold at higher levels before another buying push propelled the investors to its highest level of the day of 11,981.16 at around the halfway stage. However, bulls failed to sustain the lead as investors especially the local funds and institutions came up with profit-booking that helped bears to take control of the proceedings and the key index slumped to its intraday lowest points of 11,898.60 before regaining the 11,900 levels and closing above it.

Market analysts were of the view that it was a cautious beginning to a week which is going to witness the biggest listed company declaring its financial results.

The Oil and Gas Development Company Limited (OGDCL), which contributes 20 percent to the total market capitalization, will release its financial results for the third quarterly on April 27 and the market analysts are of the view that investors will play safe before the result announcement of the KSE bigwig.

They further elaborated that the KSE will dance on the tunes of the OGDC results and whether it's as per expectations or below anticipations, it will have its implication on the KSE 100-Index.

The incoming week also has other major companies announcing their results, including Engro, National Bank of Pakistan, Fauji Fertilizer Bin Qasim Limited, and Pakistan State Oil, which according to analysts would also define the market direction.

It's important to mention here that the National Refinery Limited, Pakistan Oilfields Limited, and Attock Refinery Limited announced record profits last week owing mainly to a surge in the international oil prices.

Market volumes slumped to the current year's lowest level as it dropped by 21.472 million shares to 45.485 million shares on Monday as compared to Friday's turnovers of 66.957 million shares.

Market capitalization shed 9.751 billion rupees (113.393 million U.S. dollars) to 3.169 trillion (36.852 billion dollars) on Monday when compared with a market capitalization of 3.179 trillion (36.965 billion dollars) recorded on Friday.

Syed Faran Rizvi, director SMH Financial Solution, informed Xinhua here that the upper shadow on Friday's candlestick indicated that the bulls launched a hefty offensive to break the upper resistance line.

"We recommend traders to buy targeting the market towards 12, 500 as a breakout above 12,000 is building up. Stop loss should be placed close to the 11,905 levels," he suggested.

He went on to say that the International Monetary Fund (IMF) said on Sunday that it has rejected Pakistan's plea to get the sixth tranche worth 1.3 billion dollars released under the Stand- by Arrangement (SBA) program which also had a detrimental effect on the local investors who decided to stay out of the proceedings on Monday.

As per the figures released by the National Clearing Company of Pakistan Limited (NCCPL) for the month of April till Friday, the foreign investors have come up with a net buying of 325.356 million rupees (3.783 million U.S. dollars).

In broader market, a total of 364 companies changed hands during the course of the day where prices of 163 issues declined, 113 advanced, whereas values of 88 other scrips stayed unchanged.

Lotte Pakistan PTA Limited emerged as the top traded company of the day with trading of 5.762 million shares in its scrip, followed by Fauji Fertilizer Bin Qasim Limited, Jahangir Siddiqui Company Limited, Azgard Nine Limited, and Dera Ghazi Khan Cement Limited with turnovers of 3.084 million, 2.473 million, 2.140 million, and 1.961 million shares respectively.

Rafhan Maize Products Limited was the top price jumper of the day with 93.48 rupees (1.08 dollar) increment to close at 2,783.10 rupees (32.36 U.S. dollars) while on the other hand Nestle Pakistan XD led the major losers with 77.71 rupees (90.36 U.S. cent) decrement to finish at 3,506.14 rupees (40.76 U.S. dollars).

Source: Xinhua
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