KSE sluggish: Awaits NRO hearing

KARACHI: The Karachi Stock Exchange (KSE) index depreciated on Tuesday as investors nervously wait for a hearing by the Supreme Court on a government appeal against the overturning of the amnesty law.
The law allowed some formerly active politicians to return but was rescinded in December 2009 by the Supreme Court. The hearing is due on Wednesday.
“The market remained subdued prior to the NRO (National Reconciliation Order) hearing tomorrow and investors are waiting for the uncertainty to be over,” said Asad Iqbal, chief investment officer at Faysal Asset Management Limited.
The Karachi Stock Exchange’s benchmark 100-share index ended 0.29 percent, or 30.22 points, lower at 10,292.33. Turnover was 51.89 million shares, compared with 88.84 million shares on Monday.
The low volumes despite contribution from below par stocks moved the index in the red zone, although panic was yet again averted by disallowing unprecedented decline in the bench-mark owing to index heavy weights.
The KSE 100 Index opened in red zone with a loss of 10.32 points and at the end of the day closed at 10292.33 with a loss of 30.23 points. KSE 30 index closed at 9939.44 with a loss of 29.11 points. KMI-30 index closed at 16226.06 with a gain of 1.15 points. All shares index closed at 7172.82 with a loss of 19.26 points.
Trading activity was minimal, compared to the last trading session as the ready market volume stands at 51.891mn as compared to last trading session 88.844mn. Future market volume however stands at 1.555mn shares as compared to 5.062mn shares last trading session.
Market Capitalization stands over Rs. 2.838tr. Total volume traded decreased to 36,792. 162 companies advanced, 223 declined and 21 remained unchanged. The highest volumes were witnessed in DOL at 5.802mn closed at Rs. 4.50 with a gain of Rs. 0.99 followed by DFML at 2.390mn closed at Rs. 1.45 with a gain of Rs. 0.05, ATBL at 2.074mn closed at Rs. 2.25 with a loss of Rs. 0.06.
Hasnain Asghar Ali, a market expert, said that “in this volatile economic environment, in case of further stringent measures in the proposed MTS, will undoubtedly not only make the product dormant; the impact on the local bourse will be quite strong.