Tuesday, November 25, 2008

Uncertainty among investors keeps KSE 100-share index static

KARACHI: Trading activities were static at the Karachi stock market on Monday following prevalence of uncertainty among investors over funds to bailout the market despite a series of meetings between Securities and Exchange Commission of Pakistan (SECP) and the Karachi Stock Exchange (KSE).The KSE 100-share index remained unchanged as it closed at 9,187.10 points. The KSE 30 index and KMI 30 index also remained at 9,981.93 points and 11,224.18 points respectively.

The market turnover increased 81.97 percent and traded 0.146 million shares as compared to 0.081 million shares traded in the previous session. The overall market capitalisation remained unchanged at Rs 2.826 trillion. Out of 14 companies, two closed in the positive zone, nine in negative while three remained unchanged. Analysts said although there have been optimistic views of the experts but official statements are still missing and same is the case with the ‘unfreezing’. Rumours that the BoD of KSE will be meeting on the issue to reach a decision and that the directors are scheduled to meet the authorities seldom materialise, and despite the sensitivity of the issue, official statements regarding development and future action plan are not available. This era is creating uncertainty among investors.

Analysts further said that the reasons for static activities include investors concern over falling market sentiment, off-market transactions at 25 percent to 50 percent discount, foreign selling and lack of liquidity to bailout capital market from its current crises. Gharibwal Cement was the volume leader in the share market with 0.41 million shares as it closed at Rs 17.37 after opening at Rs 17.59 losing 22 paisas. National Assets traded 0.38 million shares as it closed at Rs 0.41 after opening at Rs 0.44 losing three paisas. Pak Com Leas traded 0.15 million shares as it closed at Rs 0.55 after opening at Rs 0.60 losing five paisas. Habib UDL Mod traded 0.13 million shares as it closed at Rs 3.07 after opening at Rs 3.06 making a financial gain of one paisa. No trading activity was observed in the futures market.

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