The Karachi stocks market remained bearish Tuesday with benchmark KSE 100-share index plunging by 7.96 points or 0.07 per cent lower on the back of, what analysts said, institutional profit-taking.
“Stocks finished lower at KSE on institutional profit-taking,” viewed Ahsan Mehanti, director at Arif Habib Investments. The day saw the index closing at 11,517.29 points against Monday’s 11,525.25 points after hitting the respective intraday high and low of 11,669.63 and 11,495.99 points. “Strong corporate results announced by Pakistan Petroleum, higher local commodity prices in cement, fertiliser sectors supported the market sentiment in the quarter end earnings announcement session,” Mehanti added. The total shares traded at the ready-counter were recorded as negative at 69.225 million against 82.123 million traded a day earlier. This depicts a slump of 16 per cent or 12.89 million in terms of stakes.
The market capital also remained downward and shrank, though slightly, by Rs2.24 billion to Rs3.016 trillion, compared to Monday’s Rs3.018 trillion. Of the total 327 scrips, 106 were categorised as gainers, 129 as losers while 92 remained unchanged. According to market observers, a tough message from the US Secretary of State Hillary Clinton played havoc with the investors’ sentiments. “(The) Investors remained concerned over uncertainty in Pak-US relations after tough message to Pakistan by US Secretary of State to act with US led war on militants,” said Mehanti. The analyst said the absence of buyers forced massive price erosion in the frontline stocks, thus forcing the index in red zone by midday, on “Although various corporate announcements did carry enough sensation to excite market participants, dumping by offshore participants, and hefty rollover volume, along with vague economic and financial picture, disallowed aggressive resistance,” Ali viewed.
He said that cautious accumulation in selective stocks, mainly those likely to continue reporting growth in earnings and payouts, did restrict wide-spread decline. However, the companies, that are likely to face the brunt of high and expensive debt along with that of gas curtailment, remained under extreme pressure.
However, he said, widespread triggers would keep the episodes of snap rallies alive. “Caution therefore stays the call, since political and geo-political environments are likely to stay volatile, extreme movements will continue to provide sector and stock swapping opportunities,” Ali said.
