KSE sheds 59 points amid low turnover

KARACHI - The stocks remained lacklustre on Monday as investors, already cautious over the capital gains tax, awaited the re-introduction of margin buying. Fall in global capital markets, fall in international oil prices and limited foreign interest also played a key role in the negative activity. The KSE 100-share index, which opened in the green zone with a gain of 15.28 points, closed at 9637.97 with a loss of 59.68 points. Turnover was only 14.71m shares, down from 22.47m shares traded on Friday, and the lowest since December 2008. The KSE 30-index closed at 9471.30 with a loss of 48.79 points. The KMI 30-index closed at 14524.02 with a loss of 50.87 points. All shares index closed at 6761.33 with a loss of 38.98 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 14.711 million as compared to last trading sessions 22.471 million. Future market volume however stood at 0.549 million shares as compared to 0.681 million shares of last trading session. Market capitalization stood over Rs2.713tr. Total trades decreased to 16,852 as compared to last trading sessions 18,879. 144 companies advanced, 196 declined and 18 remained unchanged. Highest volumes were witnessed in AMTEX at 2.731 million, closed at Rs13.94 with a gain of Re0.40, followed by JSCL at 0.920 million, closed at Rs12.15 with a loss of Re0.21, and BOP at 0.788 million, closed at Rs10.75 with a loss of Re0.03. The analysts said, Despite positive vibes, from the leverage committee on the new flexible product, most probably to carry the infra-structure of the eliminated CFS-MKII (according to unconfirmed sources) the market-men stayed aloof; thus disallowing the market the space to manoeuvre, meltdown. They said the benchmark stayed in red zone for most part of the session, while the resident participants looked more interested in offering blocks at premiums and stayed buyers at discounts, although trades failed to materialize for the time. They added that nevertheless, high hopes have kept severe melt down away, a cheap and easily accessible ready board leverage product will indeed increase the strength of the local participants, thereby allowing the benchmark a substantial strength. They pointed out that although result season is around the corner, and some feel that the results of the main board stocks carry the substance of providing a trigger to the dull bourse, caution is advised since the results are unlikely to carry trigger material, in fact only some, will have the soothing effect for the existing stake holders. They said opportunities are likely to get attracted in currency market, as a hedge against various variables, including inflation and currency weakness.

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