by Jawad Hussain
KARACHI, May 17 (Xinhua) -- Equities at Pakistan's Karachi Stock Exchange (KSE) recorded second straight bearish day here Thursday as investors remained on the selling side following supply of negative news from the euro zone where Greece is heading for an election on June 17, 2012.
The benchmark KSE 100-Index scrolled lower by 0.13 percent or 17.99 points to close at 14,063.08 levels as against closing of 14, 081.07 levels recorded on Wednesday.
The KSE All Share Index inched down by 0.06 percent or 6.17 points to end at 9,875.69 levels, the KSE 30-Index moved down marginally by 0.02 percent or 2.48 points to conclude at 12,274.18 levels, whereas the KMI 30-Index dipped by 0.05 percent or 13.37 points to finish the day at 24,337.43 levels on Thursday.
Regional stock markets rebounded from their oversold terrains on Thursday and same was the case with the Karachi Stock Exchange as it got off to a positive start but like other regional equity markets it shed gains towards the fag end of the day.
The KSE 100-Index regained 14,100 levels in the initial trade but a steep decline forced it languishing at its intraday lowest levels of 13,990.26.
However, another buying spree then hit the exchange which propelled the main index to its highest level of the day of 14,152. 58 levels before the last-gasp selling made the main index to end in the red territory.
Market analysts informed Xinhua News Agency that the late selling spree reflected weak risk appetite among the investors.
They further elaborated that the regional markets had the same trends to show on Thursday as they rebounded in the earlier part of the sessions before giving it away in the second half as investors still have butterflies in their stomach about the future of euro zone economies.
They mentioned that US stocks and global oil prices also witnessed bearish trends amid choppy trade the other day with S& P500 reporting fourth straight bearish day as the reason was investors' concern over future of Greece as euro zone member.
Gohar Rasool, Assistant Vice President at BMA Capital Management Limited, said, "The bounce from 20EMA failed to sustain amidst declining market sentiment and increasing selling pressure. With no immediate support in sight a test of 23.6 percent Fibonacci retracement (13,777.65) and 50EMA (13,769.20) can't be ruled out".
Market volumes dropped by 2.945 million shares to 143.055 million shares on Thursday as against trading of 146 million shares recorded on Wednesday as local investors still fearing a foreigners' exodus thus staying away from the trading activities.
Market capitalization reduced by 3.471 billion rupees (38.569 million U.S. dollars) to 3.593 trillion rupees (39.93 billion U.S. dollars) on Thursday when compared with market capitalization worth 3.597 trillion rupees (39.968 billion U.S. dollars) reported the other day.
In broader market, a total of 384 companies changed hands during the course of the day where prices of 170 issues advanced, 140 declined, whereas values of 74 other scrips stayed unchanged at previous day's levels.