KARACHI: Upward journey of the Karachi Stock Exchange hit a halt as few fund managers preferred to offload their stocks in the market, while a large number of investors remained absent which dented the overall volumes.
Index moved marginally upwards by 23 points to 11,848, making the resistance at 11,800 levels quite visible, and keeping the investors waiting for 12k level. The KSE 100 index closed at 11848.62, with a gain of 23.56 points, while KSE 30 index accumulated 7.75 points to close at 11401.29 points. The all Share index closed at 8254.83 following an increase of 14.76 points.
Engro turned bullish after rumors that Engro’s new fertiliser plant had become operational. NBP was in active mood after breaching the Rs 70 level and moved swiftly towards Rs 75 level. OGDC added Rs1.86 to it share prices and supported the index’s positive journey.
Total volume stood at 68,508,622 along with the total value of 5,696,805,526. Out of 406 scrips, 192 advanced, 178 dwindled and 36 remain unchanged.
Early gains were yet again checked by technical indicators suggesting adjustment, thus the main board stocks invited fresh float. Some participants targeted index levels, while others opted for off-loading due to saturation led stagnation in main board stocks.
Negativity in the shallow market did trigger various events of low volume price erosion; dips were however duly capitalised mainly in the stocks carrying dividend yields and growth prospects, while some others moving on speculative strength struggled to find renewed buyers.
The day traders did follow the trend of consolidation for short term trades, while value contribution was made by crossings in cornered and illiquid high priced stocks, owing to the die hard support by OGDC. Rising oil prices, which is on one end a good omen for exploration companies, the impact on fragile economy would be quite loud, as indeed major economic indicators are likely to hit the alarming levels besides increasing pressures on inflation.
The index due to syndicated efforts has so far averted any major decline and various economic, financial and political fronts are likely to keep chances of technical decline on higher side, said Hasnain Asghar Ali at Aziz Fida Husein. – Pakistantoday