Investors pocket profits as KSE falls 64 points


KARACHI: Unable to capitalise on momentum built yesterday, the KSE-100 Index lost 64 points in Wednesday’s trading session at the Karachi Stock Exchange (KSE) as many investors opted to pocket their profits on the bourse.
Though anticipated, a correction this soon after positive results, hints at the shaky foundations of investor confidence. Rumours of a spat between the SECP and members of the KSE also have equity investors worried. Despite the downturn in the index, the overall turnover remained sturdy at 106 million shares, close to October’s average traded volume.
The KSE 100-Index closed at 10617.65 with a loss of 64.22 points, while the KSE-30 Index closed at 10177.49 with a loss of 84.29 points.
The index closed at 7486.71 with a loss of 44.53 points. Market capitalisation stood at 2,906,140, while the market volume stood at 106.16 million against the previous volume of 108.16 million and the 52-week average volume stood at 119.24 million.
The DGKC led the volume leader’s board followed by LOTPTA. The oil and gas sector scrip including the PSO remained in the red zone amid profit-booking after registering major gains in Tuesday’s session on account of turnover tax relaxation.
The HBL drew investor’s interest owing to better asset quality, while the rest of the banking sector remained under pressure. The defensive stance by HUBCO and KAPCO also matched the index’s performance, closing in the red zone. The index is likely to experience pressure in sessions to come as tension rises between members and SECP.
The increase in the overall turnover in both main board and mid-tier stocks, mainly due to high volatility, did allow traders to trade with improved quantities. Economic and financial concerns, however suppressed heavy activity. “In the prevailing environment, wherein various factors are necessarily negative, some are virtually uncontrollable.
Caution entails that investors consider divesting their high-priced stocks and opportunities lie in short-term trades on technical grounds,” said Hasnain Asghar Ali, a market expert.
LSE declines by 17.03 points
LAHORE: The Lahore Stock Exchange (LSE) closed negatively on Wednesday with a healthy volume. The LSE 25-shares index squeezed 17.03 points to close at 3,303.52 against its opening at 3,320.55 levels.
Volume of the market decreased by 0.26 million shares and stayed at 7.61 million shares. Out of 114 active scrips, 22 went up, 36 dwindled and 56 showed no change in their opening values. The Bank of Punjab closed the day as leaders in volume followed by Lotte Pakistan PTA.
The Bank of Punjab, with a turnover of 2.38 million shares added Rs 0.36 to close at Rs 9.69 against its opening at Rs 9.33, while Lotte Pakistan PTA with a turnover of 0.95 million shares turnover lost Rs 0.05 to close at Rs 10.28 against its opening at Rs 10.33.
Shell Pakistan, with a turnover of 300 shares was the major gainer as it added Rs 3.54 to close at Rs 195 against its opening at Rs 191.46. Millat Tractors was the major loser as it lost Rs 12.50 to close at Rs 470 against its opening at Rs 482.50. Staff Report