KSE remains dull, awaits introduction of leverage product

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KARACHI: The Karachi share market witnessed a dull session on Monday as investors awaited the outcome of the KSE Board meeting with the Securities and Exchange Commission of Pakistan on the new leverage product. The market awaited outcome of the meeting on the revival of (Continuous Funding System) CFS as its elimination has badly hit the bourse, both on turnover and trading gains, said Hasnain Asghar Ali, a dealer at Aziz Fida Husein.The KSE-100 Share Index witnessed a volatile session amidst low volumes with modest a gain of 16.91 points, or 0.17 per cent to end at 9662.62. KSE-30 Index gained 47.63 points, or 0.5 per cent, to close at 9543.02 points.Total trades decreased to 43,705 as compared with last trading session s 85,490. Out of the total 398 companies traded on Monday 144 companies advanced, 229 declined and 25 remained unchanged. Chances stay high that the eliminated product will be re-introduced after few modifications, Ali said. Furqan Punjani, analyst at Topline Securities, said that the market saw another dull session primarily due to the crucial ECC meeting on Monday as most of the sector related measures would be taken in that meeting. Mutual funds (being major investors in share markets) remained sidelined because only few days are left in their financial year end, he said. The confusion over the implications of the Capital Gains Tax has depressed volumes on KSE, he said.Dealers said that various main board and mid-tier stocks invited interest from both retail and corporate participants. Selective activity towards closing however allowed the benchmark to close positive, turnover and value of traded shares stayed extremely low.Analysts said that with economic front still posing threat mainly due to irking and unsettled circular debt along with rising trend in government borrowing with various decisions likely to have inflationary impact still pending the monetary stance will continue to stay stringent, thus disallowing the local equity market to invite new participants.Trading activity was minimal as compared to the last trading session as the ready market volume stood at 67.019 million as compared to last trading session s 135.310 million. Future market volume however stood at 2.624 million shares as compared to 5.400 million shares in the last trading session.Highest volumes were witnessed in PSAF at 14.106 million, the scrip closed at Rs6.87 with a gain of Rs0.61 followed by Bank of Punjab at 4.846 million, which closed at Rs11.35 with a gain of Rs0.46. BYCO at 4.125 million closed at Rs10.12 with a gain of Re1.00.

Courtesy : The News

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