12,289 - lowest volumes in many years !
June 30, 2008
The KSE-100 index traded only 7.3 million shares today, the lowest volume of shares traded for many years. It closed down at 12,289. While oil keeps shooting up and regional markets are getting buggered as well, the horizon appears gloomy for the moment.
News : The Securities and Exchange Commission of Pakistan (SECP), in the best interest of the capital market, has allowed associated companies of the fund managers to invest in mutual funds. This decision will bring mutual funds at par with the commercial banks…. Source : Aaj News
The government has increased gas prices by 31 percent and that of Compressed Natural Gas (CNG) by Rs 13 per kg. The new rates will be effective from July 1. The Oil and Gas Regulatory Authority notified the new rates on Monday… Source : Aaj News
Market Low : 12,256.37 High : 12,353.19
Market Close : 12,289.03 – 64.16 points down
On Friday the KSE-100 index traded its lowest volume in some time with only 20.9 million shares traded. Weekend selling pressure took the market down to close at 12,353 and most stocks closed at their lower limits. Despite the support from the SECP’s new measures to stabilize the mkt. this week, the outlook still remains bleak at the moment. It looks like there could be another round of lower caps on Monday.
The KSE-100 index made a high of 12,609 and closed at 12,452. As expected yesterday, there were quite a few lower caps and the market cooled off today with some profit taking. There could be some weekend selling 2moro as well. Oil shot up over $140 based on a weak dollar and irresponsible remarks from OPEC’s president Chakib Khelil, who said that prices could rise to $150-170 during the summer (see the article below). The market’s next upward resistance is 12,550 and a close above that would head towards 12,900. Given its current 1% downside, it could get there soon. 
The Karachi Stock market continued its rise making a high of 12,499 and closed up at 12,430. The market has jumped up 1268 points in the last two sessions and there could be some lower caps creeping in, in a day or two. Volumes have increased with 192.7 million shares traded today. 
The new measures imposed by the SECP this morning saw the KSE-100 index soar to an all time daily gain of 960.50 points, the highest ever one day gain in the history of the Karachi Stock Exchange. The new rules will provide temporary relief from the " bleeding rectum syndrome " for most investors for the next month and help those who were stuck, to have a choice to exit the market comfortably or continue. There are already articles in print with people moaning that these are articficial measures etc. etc, but the decision was wisely taken at a time when the market could have snowballed downwards even further with margin calls and liquidity problems. While the political instabilty and indecisive governance continues, along with the threat of a further discount rate hike looming ahead, sleep peacefully with the thought that the downside is only 1% 2moro !
The KSE-100 index got reamed again today and fell another 493 points down to 11,192. The last time the market closed at these levels was March 19th 2007. Fortunately some measures have finally been taken to support the market as of 2moro. While it may be a liitle too late for some, these measures should stabilize the market in a few days and there should be a big pullback 2moro. For all you shorters (people who go short )out there, the joyride is over, at least for the moment ! See the article below. 
The Karachi Stock market finished the week on Friday closing at 11,655, its lowest close since April 6th 2007. The market got rammed downwards by nearly 10%, losing 1286 points in a week. In the future it could be referred to as the " June 2008 crisis " and it has certainly cut off most people’s balls this week (and hopefully will not jam them down their throats in the coming week with a further slide !). While a lack of support left one scratching their heads on Friday, if there is no pullback 2moro, we could see a further plunge to 11,100 -10,800 (hopefully not). One must bear in mind that the rest of the world’s markets are getting fucked as well, so there could be more foreign selling. Keep applying the Vaseline !
The KSE-100 index got gang-banged today, making a low of 11,704 and closing 390 points down at 11,870. This was predominantly due to a rumour circulating, regarding doubling the price of CVT. The market is on a very weak footing with all kinds of uncertainty, political and financial, therefore the slighest cough or fart unleashes panic . It seems 500 points down in a day is par for the course at the moment. More irresponsible is the lack of any clarification on the CVT issue which seems unlikely to be implemented as it would have been mentioned at the time of CGT being exempted. Whether there will be a pullback 2moro or further erosion is anyone’s guess ! Buy large jars of Vaseline and apply copiously !!
The Karachi Stock market got another bashing today and closed down at 12,261. There was heavy selling in banks and cements and across the board in general. The market could go down to 11,800 if support at 12k doesn’t hold.
The KSE-100 index got hopelessly fucked out of shape today with a steady downward slide leading to close at 12,444, nearly 500 points down. Apparently foreign selling, political uncertainty and the Pak-Afghan border situation were to blame, along with all banks getting shafted based on an article in the newspapers re : withdrawal of all govt. deposits. Whether there will be a pullback 2moro remains to be seen. Keep the Vaseline at close reach !
Friday saw the KSE-100 index close down at 12,941, mainly due to a wait & see approach to the results of the " Long March " over the weekend. The " Long March " was a total waste of time and a criminal waste of money at a time when we are being taxed to the hilt to cover the govt’s shortfall in its fiscal and current account deficts.
The KSE-100 index opened up and made a high of 13,167 . Unable to sustain the gains it dipped and finally closed at 13,025. Aside from the fertilizer sector’s increased DAP subsidy, and no adjustment on refinery/OMC margins, the budget had really fuck all impact on the market. 
Another volatile day at the Karachi Stock Exchange with the index dipping down to 12,685 and recovering to close at 12,878. The jitters will continue till the Budget is announced.
The KSE-100 index got bashed down below 13k today on predominantly pre-budget jitters. Even oil’s enormous rise on Friday could not sustain the index in the green. Despite clarity on CGT being exempted till 2010, expect a rocky ride until all is revealed in the budget on 11th and thereafter digested. 
As expected after yesterday’s news re: CGT exemption , the KSE-100 index opened up with its biggest erection ever and closed up with a record 610 points, the biggest gain in terms of points in the history of the Karachi Stock market.
