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Closing: KSE extends losses, down 0.07% on institutional profit-taking

KARACHI: The Karachi Stock Exchange benchmark 100-index lost 24.81 points or 0.07 percent to reach 33188.77 points and volume of 143,951,980 shares on Tuesday.

Amidst fear of deflation due to Pakistan’s headline annual inflation which was recorded at 3.2 percent in February 2015, the benchmark KSE-100 index snapped the initial gains in mid day trading on Tuesday as the index fell down to 33000.27 by losing 213.31 points or 0.64pc.

In the early trading on the same day, the index had reached 33273.21 points with a positive change of 59.63 or 0.18 percent, fighting the bears which had dominated the other day when the market ended 419 points lower at 33213.58 points, down by 1.2pc. The High and Low were 33293.52 and 32970.19 respectively while the total volume traded in the market was 64,567,640.

The market rose amidst Pakistan’s headline annual inflation was recorded at 3.2 percent in February 2015 over the corresponding period last year while the previous lowest level of inflation was 3.1 per cent back in 2002-2003. Data shows that the national economy is likely to slow further in the next few quarters. An expert said that the country was already witnessing deflation from last few months.

The earlier losing spree was due to speculation that foreigners are net sellers in market after $10m net outflow.  Locals are also facing liquidity shortages as they have already absorbed net selling by foreigners of $109m in last 3 months.

The High and Low were 33293.52 and 32811.71 respectively with the total volume traded in the market of 143,951,980.

Because of bearish spell, February CPI reading of 3.24pc which was better than market consensus had no positive impact on share prices. In the short run market is expected to remain under some pressure and investors will continue to focus on foreign flows, observed Samar Iqbal VP at Equity Sales Topline Securities.