KSE inches down ahead of long weekend

As investors geared up for a long weekend, equities at Pakistan's Karachi Stock Exchange (KSE) showed lackluster activities on last trading day of the week as its benchmark index inched down slightly with low volumes Thursday.

The benchmark KSE 100-Index shed 0.12 percent value or 11.80 points to close at 9,879.33 levels, KSE 30-Index fell by 0.53 percent or 51.61 points to end at 9,662.12, KSE All Share Index dipped by 0.08 percent or 5.43 points to conclude at 6,900.80, and KMI 30-Index slipped by 0.28 percent or 42.47 points to finish the day at 15,364.01 levels here.

The market started the day amid a to-and-fro motion which saw the main index paying visits to both green as well as red column. However, at around the halfway stage, it jumped into the green zone and achieved its intraday high of 9,942.59 levels as local investors showed some confidence on the capital markets despite concerns over the national economy. However, this time around foreign investors decided to book profits at higher levels ahead of the long weekend which ejected all of the intraday gains and the key index hit the lowest level of the day of 9,856.01 before closing just a touch higher.

It is important to mention here that the Karachi Stock Exchange (KSE) will remain closed from Friday, Aug. 10, 2010 till Monday, Aug. 13, 2010 on account of Eid holidays.

While talking to Xinhua scribe, market analysts stated that the last night market was able to get out of the fear zone by hitting hard the major resistance level but the point of concern is that the index is hovering around the critical area of 9,926-9,891 where the possibility of GBI (Green Bar Ignored) is quite existent. They further elaborated that once index gets out of this area then a strong bullish momentum can be witnessed at the KSE.

Syed Faran Rizvi, Director SMH Financial Solution, told Xinhua that three white candles have occurred in the last three trading sessions.

He added that although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

"We are seeing continuation of bullish trend after the Eid holidays and are targeting market towards 10,290. Traders are recommended to buy and order stop loss at the level of 9,830", he added.

As it was the last trading session of the week, investors tried to book profits and take an exit from the market which was indicated on the market volumes as they moved down by million shares to 50.449 million shares when compared with Wednesday's trading of 52.211 million shares.

Jahangir Siddiqui Company Limited emerged as the top traded scrip of the day with trading of 5.562 million shares in its scrip. First Credit, Nishat Mills Limited, Fauji Fertilizer Bin SPOT, and Nishat Power Limited followed with turnovers of 4.626 million, 4. 154 million, 4.055 million, and 3.588 million shares respectively.

In broader market, a total of 341 companies traded hands during the course of the day where prices of 177 issues jumped, 147 declined, while rates of remaining 17 scrips stayed unchanged.

Rafhan Maize Product was the major price gainer of the day as its share price climbed 63.1 rupees (74 U.S. cents) to close at 1, 437.9 rupees (16.9 U.S. dollars) while on the other hand Siemens Pakistan shed 13.58 rupees to lead the top decliners before ending at 1,127.42 rupees (13.3 U.S. dollars).

Source: Xinhua