KSE sees modest losses on selected selling

KARACHI: The non-stop buying from overseas investors and closing of two index movers into the positive territory prevented notable decline on the Karachi bourse. Sell-off in many blue-chips caused modest loses on Thursday.

The KSE 100-share Index posted a marginal fall of 0.06 per cent or 4.58 points and closed at 8,315.16 points.

The parallel running junior 30-Index, on the contrary, managed to extend gains and attained another 0.23 per cent or 20.85 points to conclude at 8,931.84 points.

Overseas investors continued to inject fresh funds on this 18 consecutive session and inflow another $6.55 million in this single session. With this, the net foreign investment at the local bourse has augmented to $65.37 million to date since the beginning of the month of August, according to NCCPL.

Owing to the closing of two heavy weight stocks on positive note i.e. Oil & Gas Development Company (OGDC) and MCB Bank, the 100-Index registered minimal losses while 30-Index continued hovering higher, analysts said.

OGDC and MCB together contributed cumulatively about 26 points in the key benchmark 100-Index and also occurred position among top-ten volume leaders, through the day turnover has turned down to low.

While Pak Petroleum continued to attract fresh funds following announcement of massive increase in production of the Pindori oilfield yesterday in which the OGDC also has 50 per cent stake.

The stocks have reached to sensitive levels with the crossing of 100-Index beyond 8,300 points level.

Therefore, the technical sell-off in many of the stocks on board was due, as most of them have invited uninterrupted buying for one reason or the other, analysts commented.

Local margin hunters took advantage of inflated levels, some profit booking by foreigners in front line Pakistan Telecommunication Company was also reported.

The thin turnover, however, did not allow market to move in a wider range and fluctuated by as many as 100 points either side of the fence between 8,392.62 points intra-day high and 8,282.18 points intra-day low.

Turnover fell by 21 per cent to 116.88 million shares from 148.32 million shares yesterday.

Futures market volume also dropped to 2.09 million from 2.87 million shares traded a day earlier.

In line with this, the overall market capitalisation also slipped down by mere Rs1.4 billion and stands at Rs2,440 billion.

“Rise in Pindori field production of POL and foreign interest in oil and banks led to positive activity in the early session. Profit taking in Pakistan State Oil (PSO) on account of rising circular debt & National Bank of Pakistan (NBP) on account of expectation of falling financial result led to negative activity towards the session closed,” commented analyst Ahsan Mehanti.

Introduction of modified CFS MK-II will trigger recovery in turnover and stocks prices too, he opined.

Out of total 367 actives, 200 stocks declined, 144 stocks advanced, while the value of remaining 23 actives closed unchanged.

Highest volumes were witnessed in JS Company at 11.36 million closing at Rs25.91 with a gain of 32 paisa, followed by Oil & Gas Development Company at 10.12 million closing at Rs99.58 with a gain of 85 paisa, National Bank at 8.36 million closing at Rs65.65 with a loss of Rs1.88, Fauji Fertilizer Bin Qaism at 7.76 million closing at Rs19.87 with a gain of 66 paisa, Pak Oilfields at 7.37 million closing at Rs197.24 with a gain of Rs4.95.