KSE sees more losses amid concerns over upcoming monetary policy

KARACHI - The Karachi stock market saw more losses on Wednesday, with fall in global equity markets, fall in international oil prices near to $81, limited foreign interest, uncertainty over disbursement of next IMF tranche for Pakistans economic support and concerns over monetary policy announcement next week playing a catalyst role in the negative activity. The Karachi Stock Exchanges benchmark 100-share index closed 0.15 percent, or 16.26 points, lower at 11,154.83. The KSE 30-index closed at 10,768.51 with a loss of 54.11 points. The KMI 30-index closed at 17,861.46 with a loss of 3.55 points. All shares index closed at 7,758.20 with a loss of 8.30 points. Trading activity was minimal as compared to the last trading session as the ready market volume stood at 15.397 million as compared to last trading sessions 15.511million. Future market volume however stood at 5.67 million shares as compared to 6.74 million shares of last trading session. Market capitalization stood over Rs. 3.045trillion. 180 companies advanced, 191 declined and 25 remained unchanged. Highest volumes were witnessed in Jah. Sid. Co at 1.371 million, closed at Rs. 13.28 with a loss of Re. 0.02, followed by Azgard Nine at 1.317 million, closed at Rs. 11.71 with a gain of Re. 0.30, and Lotte Pakistan PTA at 1.27 milion, closed at Rs. 11.84. Ahsan Mehanti said, While the benchmark sustained positive stance initially, the low volume stocks kept the turnover alive. Although selective main board stocks did invite cautious accumulation from corporate corridors on dips, the day traders seemingly avoided making fresh intra-day bets. Thus keeping the frontline stocks under pressure. He said mainly due to off-loading by the resident participants from both corporate and retails fronts, while stocks having speculative tendency did witness higher volatility, thus, making the presence of local financial groups quite prominent. Nevertheless the volatility did invite various trading opportunities. He added that concern regarding impact of likely implementation of RGST on soaring inflation along with various variables suggesting likely increase in local interest rates subdued the release of high export numbers of textile products, as the main board, textile sector stocks failed to continue the bull-run initiated a day earlier. He further informed that while snap rallies in low price stock of the sector on the support by local financial group most likely on update regarding strategic sell-off to reduce high debt profile, invited high turnover along with decent gains in value. He pointed out that accumulation on dips in main board stocks did allow the stocks to restrict the downside, through corporate support, panic sell off due to absence of buyers on intervals forced massive erosion in stock values. He further said the governments plan to generate finances through local bourse and positive updates on leverage product, without clear timeline however has seemingly re-invited the sideliners, low volumes however disallowed fresh entries, while prolonged stagnation triggered sell-off in the main board stocks, thus pushing the index into deep red. Day end short covering did allow the benchmark to attain positive numbers, the trading board however stayed red.

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