KSE flat as investors stay on the sidelines

KARACHI - The stocks ended flat in dull trade on Tuesday as investors stayed on the sidelines in the absence of any positive triggers and uncertainty over an International Monetary Fund (IMF) loan. The Karachi Stock Exchanges benchmark 100-share index , which opened in the green zone with a gain of 6.15 points, ended a marginal 0.01 points up at 10,556.38. Volume was 110 million shares compared with 125.45 million traded on Monday. The KSE 30-index closed at 10684.13 with a gain of 23.42 points. The KMI 30-index closed at 15881.74 with a gain of 52.89 points. All shares index closed at 7438.76 with a loss of 5.83 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 110.019mn as compared to last trading sessions 125.453m. Future market volume however stood at 3.967m shares as compared to 3.328m shares of last trading session. Market capitalization stood over Rs2.991tr, as total trades decreased to 64,836 as compared to last trading sessions 67,417, while 170 companies advanced, 246 declined and 20 remained unchanged. Highest volumes were witnessed in TRG at 14.668m, closed at Rs5.70 with a loss of Re0.66, followed by ANL at 7.851m, closed at Rs15.56 with a gain of Re0.19, and LOTPTA at 6.587m, closed at Rs11.28 with a loss of Re0.22. Some news that affected the trading activities at the market were: NSS piles up Rs169.4bn in 9M; SECP officials row delays leverage product; FY11 budget to bear no new tax but CGT; and SBP extends EFS claims deadline for textile sector. Lull that followed early hours thrill forced off-loading mainly in the main board stocks, while low activity in penny stocks kept the turnover on the lower side along with the value of traded shares. The corporate participants however accumulated selected stocks on dips thus capitalizing on the opportunity, besides restricting the index from undergoing an unprecedented decline. Amongst the issues disturbing the locals from freely investing in the local bourse is the stagnation that sets in; mainly due to liquidity crunch, that in turn is the results of CFS elimination.

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