KSE bows down to 34,000 points

KARACHI: The Karachi Stock Exchange’s (KSE) benchmark-100 Index slipped below the threshold of 34,000 points with a drop of 0.17 percent, as investors sold oil and associated stocks on extended decline in the international oil prices, dealers said on Wednesday.”Bearish activity was witnessed at the KSE amid profit-taking in oil stocks after fall in WTI crude prices near to $46 / barrel. The KSE 100-share Index declined by 56.93 points, or 0.17 percent, to 33,974.85 points. The index moved both the sides of the fence by 230.64 points between intraday high of 34,127.44 points and intraday low of 33,896.80 points.

The KSE 30-sahre Index lost 91.51 points, or 0.45 percent, and closed at 20,444.03 points.Volumes decreased by 20 percent to 192.66 million shares as compared to 239.43 million shares a day ago. Trading value declined by 30 percent to Rs7.57 billion. Market capitalisation slashed by Rs7 billion to Rs7.26 trillion. Of the total of 386 active stocks, 183 closed with decline in their prices, 174 increases and 29 closed with no change.

A KASB report said that oil prices fell approximately one percent on Tuesday after weak economic data from China and UK. Additionally, the US Energy Information Administration said it expects oversupply in the market to last another year. According to their report, the US Shale production is expected to fall the most on record in November. However, institutional support witnessed in selective banking stocks on upbeat earnings announcements. Another analyst said that power producers were among significant losers at the Karachi Stock Exchange, including Hub Power Company and Kot Addu Power Company. “They fell because the impact of decline in the international oil prices would be seen in their earnings,” he said.

He said cement stocks also witnessed extended profit-selling on reports about break in the alleged cement cartel. “The news that two big industrial players {Lucky Cement and DG Khan Cement} are setting up new production plants in neighbours of their immediate competitors is actually the news about break in the cartel,” he said.

The break in the cartel may initiate price war among competitors and impact their earning, he added.He said the 100-index may stay around the current level or recover on the back of foreign buying. “Foreigners are taking positions in selective banking and fertiliser stocks,” he said. Pace (Pak) Ltd was the volume leader with 30.97 million shares, as it closed at Rs7.09 with a decline of 46 paisas.

This was followed by Lotte Chemical with 13.50 million shares, which closed unchanged at Rs7.14.TRG Pak Ltd recorded trade in 12.41 million shares, as it closed at Rs37.31 with an increase of 42 paisas.


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