Profit-taking forces KSE to give back gains; down 137 points

KARACHI - Karachi Stock Exchange witnessed another day of profit-taking that wiped out 137 points from the KSE-100 index on Wednesday. At morning, the KSE-100 index gained up to 200 points amid buying euphoria. However, the key market players could not digest the growth in the stock market and the bullish sentiment and they took it a good opportunity to off-load their stakes to book profit, a broker said. A selling pressure emerged in the market after 12 Noon that not only wiped out the mornings gains of the equities but also landed the 100-index and 224 companies shares into negative zone, he said. The Wednesday was the day of losers as out of 349 companies active at Karachi stock market, the value of 111 companies shares increased, 224 companies lost while the worth of the shares of 14 companies remained unchanged. In percentage, the KSE-100 index lost 1.75 per cent on Thursday. The market capitalisation of 100-index had declined to 2.84 trillion rupees ($36.89 billion), 0.94 per cent down from previous sessions $37.24 billion. The market players stunned the countrymen by lifting the KSE-100 index from slightly below 6,000 points to very close to 8,000 points level after the reinstatement of the deposed judges and Punjab Chief Minister. After the reinstatement of judges, the KSE-100 index had marked an astonishing growth of over 50 per cent. However, as the small investors have once again entered the stock market with the anticipation of a marvellous growth in the value of equities, the market players have again become active to spoil the market through profit-taking by using lame pretexts. Capital market analysts say that when the stock market continues upward march, the market players and manipulators dig out all the positive developments from different nooks and corners in favour of the rising market. However, when they opt for selling and profit-taking, they cite different negative developments and thus spoil the bullish sentiments and put halt to the growth of equities, an analyst said. On Wednesday, the State Bank of Pakistan announced a big relief for the banking sector by reducing the paid-up capital requirement from 23 billion rupees to 10 billion. But the stock market stakeholders have over looked this important fiscal incentive for the banking sector, although a majority of the investors were anticipating further boom in the market because of this development. The volume leaders on Thursday were DG Khan Cement, Jahangir Siddiqui Company, FFBQ, Pak Oilfields, National Bank, NIB Bank, Bank Alfalah, Arif Habib Securities, Nishat Mills and Lucky Cement.

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