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THE KASB REVIEW
STOCK MARKET AT A GLANCE

  1. FINEX WEEK
  2. STOCK WATCH
  3. STOCK MARKET AT A GLANCE

Updated on Jun 12, 2000

The KSE Overview: Volumes hit rock bottom

The market breached our major support of 1400, and tested lows of 1373.62 on the last trading day, but managed to recover and eventually closed just marginally below support at 1399.30. On a w-o-w basis, the index level registered a decline of 5.1 per cent.

The Board of Directors' decision to suspend the membership of four members of the Lahore Stock Exchange for having defaulted on their exposures was the major factor in keeping market sentiment significantly depressed during the week.

A negative market rumour relating to the freeze of the Dewan-Dhan deal, which further increased apprehension due to large off-loadings by leading brokerage houses, brought the entire PSF industry scrips under fire.

Fauji Fertilizer, which prior to the ex-dividend date closed at 50.50, fell by Rs10.25 on the last closing day. Contrary to an expected fall of a normal slip of Rs 6, the scrip fell drastically by 20.30% to end trading at 40.25 basically in line with the overall negative trend of the market.

Institutional investors were seen pacing along the sidelines, and are revealing their presence in a modest way, as if buying time to enter the rings at more attractive options. The trading volumes, which touched a level of 59.2 mn during the week, were the lowest recorded level over the last year.

Studying the index and volume levels, spread over a two-year period, it is noticed that every time volumes weaken drastically, a trough is hit, whereas high volume periods always confirm peak levels.

Failure to sustain over 1400 levels has confirmed technical weakness. A steep decline in the Index level is expected as the third wave progresses towards maturity in the band of 1250-1350 where a turnaround is most likely to emerge. Our basis for saying this is on the concept of Elliot Wave Theory.

Closing at a marginally below-the-support level, accompanied by the persistent negative sentiment, will aggravate nervousness on the part of investors who may not only resist accumulation at the dips, but may also continue to indulge in panic selling, which, in our view, may take the market down by another 50-100 points. However, ultimately the market is expected to regain its support level of 1400. We continue to look for values at lower levels, and recommend accumulation at weaknesses.

 

MARKET ROUNDUP

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LAST WEEK

THIS WEEK

% CHANGE

Mkt. Cap (US $ bn)

7.49 7.08 -5.47

KSE 100 Index

1474.40 1399.30 -5.09

Total Turnover (mn shares)

814.32 572.04 -29.75

Value Traded (US$ mn.)

732.52 408.54 -44.23

No. of Trading Sessions

5 5  

Avg. Dly T/O (mn. shares)

162.86 114.41 -29.75

Avg. Dly T/O (US$ mn)

146.50 81.71 -44.23

MSCI Pakistan Index:

     

Pak Rs.

104.24 100.25 -3.83

US $

51.47 49.64 -3.56

Source: KSE, MSCI, KASB


 

ACTIVE ISSUE

COMPANY

CL. PRICE

% CHG.

TURNOVER

Pakistan Telecommunication

24.35 -1.62 215,746,500

Hub Power Co.

15.10 -10.65 86,602,500

Pakistan State Oil

144.95 -10.28 123,376,300

ICI Pakistan Limited

12.30 -8.55 47,831,500

Sui Northern Gas

11.65 -7.91 19,811,500

 


 

LEADERS

COMPANY

UP

CL. PRICE

TURNOVER

%CHG.

Lever Brothers 109.00 949.00 10,020 12.98
Murre Brewery 4.95 34.95 20,000 16.50
Adamjee Insurance 3.60 61.60 3,825,000 6.21
Pak Oil Field 2.10 102.00 2,700 2.10
Hussain Industries 1.90 12.95 3,000 17.19

 


 

LAGGARDS
COMPANY DOWN Cl PRICE TURNOVER %CHG
Pak Ins. Corp. 25.00 305.00 100 -7.58
PSO 16.00 144.95 123,376,300 -9.94
J.O.V. & Co. Ltd. 16.50 43.00 8,000 -27.73
Al Ghazi Tractors 13.95 64.00 5,000 -17.90
Attock Refinery 13.50 55.00 600 -19.71

 


 

ASIA PACIFIC & AUSTRALIA
EXCHANGE INDEX lEVEL CHANGE EXCHANGE
Bombay BSE 4729.63 +0.82 +0.02%
Hong Kong Hang Seng 16120.26 +243.33 +1.53%
Jakarta Composite 477.93 -0.28 -0.06%
Kuala Lumpur Composite 861.3 +19.06 +2.26%
Seoul Composite 836.4 +36.29 +4.54%
Singapore StraitsTimes 2042.61 -17.66 -0.86%
Sydney SAP/ASX200 3146.5 +19.80 +0.63%
Tokyo Nikkei 225 16861.91 -142.43 -0.84%

 


 

EUROPE
EXCHANGE IINDEX LEVEL CHANGE EXCHANGE
Amsterdam AEX 672.54 +0.41 +0.06%
Frankfurt DAX 7279.39 +36.26 +0.50%
Istanbul XU-100 16804.39 +141.44 +0.85%
London FTSE 6469.4 -27.20 -0.42%
Madrid General 1002.7 +8.07 +0.81 %
Milan MIB Tel 31989 +156.00 +0.49%
Paris CAC 6525.22 +1.56 +0.02%
Zurich SSMI 7800.1 -9.70 -0.12%

 


 

EUROPE
EXCHANGE INDEX LEVEL CHANGE
Dow Jones Industrial 10668.72 -144.14
NASDAQ Composite 3825.56 -13.70