Selling pressure continues at KSE (20122008)

KARACHI: The 100-Index of Karachi Stock Exchange (KSE) plunged by 270.84 points to close at 7,514.42 on Friday in the absence of CFS facility.
The turnover volume was estimated at 84.748 million shares as 113 scrips sustained losses while 60 recorded gains and 6 remained unchanged.
Selling pressure continued in the market amid absence of financial support on consecutive fifth day of trading since the price flooring was lifted on Monday. NIB Bank was the volume leader with a turnover of 13.847 million shares followed by Maple Leaf Cement 9.914 million shares, Japan Power 7.395 million shares, Bosicor Pak 4.486 million shares and JS Bank Ltd 4.295 million shares.
Pak PTA Ltd closed at 1.83, KESC 2.24, NIB Bank 4.60, Bosicor Pak 4.74, TRG Pakistan 206 and Fauji Cement 4.73.-APP
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####19122008#kse#
Malignant bearish sentiment continues to prevail in KSE (19122008)
LEADER REPORT
KARACHI: Bourse at KSE demonstrated a further slide on Thursday as index on the fourth day after the removal of floor declined by 320 points (4 percent) to close at 7,785 points. Over 50 million shares were traded throughout the day, whereas PCCL remained the volume leader followed by TRG with 11 and 9 million shares, respectively. 160 scrips were traded over all of which 126 declined while 45 scrips advanced, mainly comprising 3rd tier scrips.
Mutual funds to continue freeze on redemption
Mutual funds maintain the freeze status on redemption even after four days of removal of floor. At the time when the redemption was abandoned it was stated that it will be restored on the fourth day after the removal of floor on the index. The cause for continuing the restriction is due to no activity in the blue chip scrips while the funds are not able to sell their holding to pay back the investors.
Current account deficit expand by 44 percent
A rise of 44 percent was witnessed in the current account deficit in the first five months of the FY09 to USD 6.8 BN compared to USD 4.745 BN last year, depicting an increase of USD 2.71 BN.
Oil prices drifted to 4 years low in international market
On Wednesday, oil prices dropped down to their 4 years low levels owing to reduced demand in wage of global economic turmoil. While declining oil prices have raised economic concerns for major OPEC member countries, they have cut their oil production by 2.2 million barrels a day, however wide recession concerns continue to pressurise oil prices which is evident from recent fall in prices after the reduction in oil production
Market now looking for its bottom levels
As the market witnessed a chunk of buying bids on the trade screen in the closing session, we are of the view that with the market losing points on the table, investors are identifying the lucrative values of many stocks and tapping opportunities at low levels of the prices. It seems that market is now finding its bottom levels below 8,000 levels after which we might see a decent bounce in the market. Furthermore, as preparation of support fund by finance ministry has again being witnessed, if it materialises it will be a good support for the market at lower levels and will act as a catalyst in stabilising the market.