KSE closes in the red with a loss of 728.15 pts

* Intra-week high was of 15,201 points on Monday and low was at 14,039 points on Friday

KARACHI: Bears invaded most of the trading sessions at the Karachi stock market during the week. Investors went for panic selling, as they were concerned over the rising political uncertainty, current account deficits and reinstatement of judges, analysts said.

The Karachi Stock Exchange (KSE) 100-share index closed at 14,228.67 points with a loss of 728.15 points as compared with the previous week’s close of 14,956.82 points. KSE 30 index closed at 17332.855 with a loss of 1242.76 points. Other major factors, which affected the market’s performance included SCRA balances falling to $44 million reflecting foreign investment and apart from pre-budget uncertainties such as capital gain taxes and debilitating of the rupee against the dollar also affected investors’ confidence. This propelled average daily turnover in the ready market to 189 million shares or Rs 23 billion, down 17 percent in shares and 4 percent in value terms.

Farhan Mahmood, analyst at JS Global Research said in his analysis that the market remained highly volatile throughout the week, posting its intra-week high of 15,201 points on Monday and intra week low of 14,039 points on Friday.

Despite some progress on the political front, depleting foreign exchange reserves and rising international oil prices heightened concerns over the deteriorating macroeconomic situation. Moreover, sharp devaluation of the rupee against the dollar amid capital flight abroad unnerved investors. This situation reached its peak on Friday when the rupee fell to 69.9 against the dollar in the inter-bank market. However, timely SBP intervention helped ease pressures on the rupee, which closed at Rs 68.60. Further, there were also rumours that the government might increase discount rates soon to shelve excess money supply.

During the outgoing week, heavy selling was observed in sectors like insurance (down by 14.1 percent), commercial banks (down 6.6 percent), cements (down 6.4 percent). However, IPPs being good defensive stocks were up by 1.2 percent.

During the week, CFS investment stood at Rs 52.5 billion, down by 3.6 percent. Similarly, CFS rate also registered a decline as it stood at 11.6 percent versus 12.1 percent of the previous week. While, net foreign selling was observed as NCCPL data showed a net outflow of $45 million during the week.

Ahsan Mehanti, senior analyst at Shahzad Chamdia Securities analysing reasons of negative closure of the market said during the outgoing week the market was dominated by bearish sentiments in the wake of panic selling in falling rupee and export curbs on foreign currencies Other major factors which influenced the market include Bank of Punjab alleged fraud of Rs 13 billion and investors concern over capital gains tax imposition expectations in upcoming budget as proposed by the SECP.

The average ready market volume stands at 188.5568 million shares as compared to 227.828 million shares.

The average future volume market was better this week as compared to the previous week, as the average future market volume stands at 57.65 million shares as compared to 56.034 million shares. Market capitalisation was recorded at Rs 4.432 trillion.

And where is Dar in all of this? in london licking the ehind of his ubber rich 'samdhi'

how dare you. you know very well as i do its the fault of the previous government!

you know what instantexcess. what sickens me even more is that people would blame the previous government and they dont know #### about economics.

LOL! The high cost of crude oil which is putting strain on our economy is somehow Musharraf's fault. Damn him and his army of insane economists...they've somehow driven up the cost of oil and food across the globe.....

I have seen some people saying in these forums that the investment which came in this country in the period of mushy and shaukat aziz was the wrong kind of investment and it wasnt industrial etc etc than why cant these people do the same in 90's and why are the investers losing there confidence AGAIN


SPEEDY
enjoy

The global economical situation is pretty much messed up and here we have people 100% blaming Musharraf, Shaukat, Nawaz and Zardari...

When your currency devalues by 7-10% in a fortnight, what do you expect?

These guys have the same plan of the 90s. Devalue and hope exports becomes cheaper and competitive. Doesnt work anymore. Same old chutiyapa plan, didnt work then, wouldnt work now. The best these scumbags could have done is maintain the currency strength. Now see the investors running away.

KSE tumbles 247 points on ratings downgrade


KARACHI: Downgrading of credit rating by S&P added misery to the gloomy situation at the Karachi bourse. Accordingly, panic selling ruined gains on massive level on Friday.

KSE 100-share Index posted a significant fall of 247 points or 1.71 per cent and ended at 14,233 points.

The market opened on a negative note and remained hovering in the red zone throughout the day. The index hit 14,182 points intra-day low just before the session closed and invited little buying on the day dips.

The parallel running junior 30-Index fell 373 points or 2.16 per cent and finished at 16,883 points.

S Kashif Mustafa at ECL Research said, “Panic selling continued as investors once again opted to side up their position in the weekend session, due to downgrading of Pakistan’s credit rating to ‘B’ by Standard and Poor’s. The major reasons for this change were current account deficit, depreciation of rupee and the political environment.

“This negative outlook further forced the foreign investors to pull their investment out of the market, as an outflow of foreign investment of US$4.8 million has been witnessed in this week, including this session,” he added.

Another analyst said that the continuously declining forex reserves of Pakistan, standing at US$12.207 billion at present and lowering of Foreign Direct Investments (FDIs) also convinced overseas investors to offload their holding at the local bourses.

Though the all time high oil prices in the world markets, which crossed US$127 per barrel during the day future trading, had the potential to drive the market out from the crisis. But the fast changing political scenario in domestic politics and the fear of correction in international oil prices, kept investors conservative and never allowed them to stay with high holdings, another analyst said. Beside this, the budget related concern was another cause of correction on the weekend, he added.

Banking sector continued its bearish trend, hefty selling was seen in BALF, NBP, UBL and MCB, which closed with soaring losses. The cement and oil sector followed the trend and almost all scrips closed in the red zone, Mustafa added. The power generation sector showed a slightly better performance on account of the expected incentive by the government. As there was a huge shortage of power in the country, government has announced a short term plan which will benefit the sector.

The worsening situations on many fronts kept investors short of attendance. The day turnover remained thin at 169.1 million shares. This was, however, slightly higher than 167.6 million shares, which changed hands a day earlier.

The future market turnover, however, surged to 43.9 million shares against 38.7 million shares of yesterday. The overall market capitalisation further fell by another Rs72 billion to stand Rs4.373 trillion.

Minus sign overpowered the plus sign, as 221 companies’ stocks closed in the negative column, against the 96 companies’ stocks advanced. The value of 28 scrips remained unchanged, with total 345 active counters.

Highest volumes were witnessed in Pak Prem Fund at 17 million shares, closing at Rs13.12 with a loss of eight paisa, followed by Arif Habib Securities at 10.6 million, closing at Rs190.50 with a loss of Rs2.60, Bank Al-Falah at 10.2 million, closing at Rs55.30 with a loss of 56 paisa, Engro Chemical at 7.2 million, closing at Rs316 with a loss of Rs4.65 and Genertech at 5.9 million, closing at Rs4.18 with a gain of Re1.

LOL see this is the typical no good stupid demo-crazy attitude .. when some thing goes wrong there is no accountability in this demo-crazy yeah put the whole blame on the "pervoius goverment" but when you start getting the fruits from the seeds that were planted by the previous goverment oh no it's the mircles of our goverment ...

And you know what ? I don't care any more ... People of Pakistan deserve this, they wanted this so called demo-crazy so be it ... army should not step in to save people from thier misery, they deserve these type of politicans ... let Pakistan be at a stand still untill the people relize how much they have lost in this demo-crazy, but what I fare is by the time this public relize this it'll be too late ...

Yup musharraf had to do something with high oil prices, i remeber what funny speech nawaz gave during the election "jab mai tha tu petrol 16 rupai ka tha abb 60 ka hai" when asked what would you do about it he answered the oil prices in the world have increased so i cant do nothing, then he goes and says the high oil and pertol prices are musharrafs fault hilarious simply hilarious.

obviously now everyone will go in hiding over this.


Did anyone notice that the downgrade in ratings came after Dar had met them. I guess they saw what a retard he is/was or will be.

The new finance minister has another 1/2 a dozen ministries already. Will Zardari stop screwing Pakistan and find a REAL finance minister

KSE shock waves shatter index to three months low



KARACHI: Karachi Stock Exchange (KSE) today witnessed severe jolts due to persisting melting of rupee value and the continued shadowing of the precarious economic situation by pernicious political non-issues, which saw the KSE-100 index tumbling down the 14000 psychological barriers.

The market opening on a pessimistic note witnessed after a short while somewhat recovery, but the unstable political situation and bad economic indicators kept haunting the investors, which soon took the wind out of the sail of investors, who preferred selling instead of making new investments. Besides, dollar today selling at Rs70 in the inter-bank market further propelled the selling trend and the KSE-100 index at the close wrapped up at 13,922 points, shed by a robust 311.

Turnover today aggregated to 120 million shares, which is about 20 percent less as compared to the previous day. KSE-30 index eroding 502 points winded up at 16,380.