Pakistan's KSE ends with clipped gains
- Source: Xinhua
- [14:53 September 15 2009]
- Comments
Pakistan's Karachi Stock Exchange (KSE) started the fresh week on a positive note following more buying by the offshore investors, but selling from the local investors forced the main index to end with limited gains here Monday.
The benchmark KSE 100-Index swelled by only 16.48 points to close at 9,075.25 levels, KSE 30-Index shed 22.89 points to rest at 9,676.15 levels, whereas KSE All Share Index gained 11.68 points to end at 6,424.24 levels here.
After a promising start to the trading proceedings, the key index consolidated itself into the green zone mainly on the back of foreign investors who were there to shoulder it to new heights. At around mid-day stage, the key index went on to go past the psychological level of 9,144; the level where the index was frozen last year following a steep decline in the market value and national economy, after which, government had to reach International Monetary Policy for a standby facility to avoid balance of payment crisis.
During the course, at one stage, the main index was able to hit the intraday highest level of 9,147.45, but then a selling pressure,mainly aroused by the local investors who opted for booking profits at higher levels, hit the Exchange and started to evaporate the earlier gains. This selling spree forced the main index to fall below the 9,100 levels and it rested with limited gains at the end of the day.
Market volumes showed another dismal performance despite a green ending at the Exchange as a turnover of 144.495 million shares was recorded, which are 48.263 million shares lower as compared to Friday's trading figure of 192.758 million shares.
Market analysts told Xinhua that the bourse is due to witness mixed trend during the course of the week ahead of the Muslim's Holy event of Eid-ul-Fitr, and it could witness limited investor activity, which would show on the volumes side.
They also stated that two important events are expected to further buoy bulls at the Exchange as Friends of Democratic Pakistan's (FoDP) all-important meeting will be held on Sept. 24 where the government of Pakistan is expecting its "Friends" to release the pledged amount to spend it for the rehabilitation of the militancy-hit northern areas.
State Bank of Pakistan is also due to announce its monetary stance on Sept. 29 for the second time in the Financial Year 2009- 10, where investors and analysts are expecting a cut not less than 50 basis points, but on the other hand, sources told Xinhua that the central bank is all set to hold its key discount rate at current levels.
While commenting on the arising situation, market experts said market wouldn't take positively a situation where the central bank opts for holding its key rate, instead it should make at least 50- point cut because inflation numbers are continuously on the decline.
The main board presented a red picture at the end of the day with out of total 379 active scrips, value of 188 stocks plunged, 178 advanced, while prices of another 13 issues remained unchanged.
Bank Al-Falah Limited (BAFL) was the top traded scrip of the day with a turnover of 11.624 million shares, followed by Pakistan PTA Limited (PPTA) and Arif Habib Securities with 11.025 million and 7.838 million shares respectively.
Wyeth Pakistan Limited was the top price gainer of the day with 57.11 rupee increase in its share price to end at 1,267.11 rupees, followed by Nestle Pakistan Limited with a surge by 21.00 to close at 1,101.00, while Bata Pakistan Limited soared by 20.00 to finish at 1,000.00 rupees.
On the flip side, Pakistan Services Limited led the major decliners' column with 11.75 decline in its value to rest at 223. 39,followed by Millat Tractors that lost 10.18 to settle at 309.71, while Pakistan Engineering shed 8.48 to finish the day at 210.00 rupees.(1 US dollar equals 82 rupees)
