DOWNWARD TENDENCY IN PRICES

DOWNWARD TENDENCY IN PRICES
Q. Draw up, in proper form a market day report in technical words relating to Karachi
Stock Exchange using imaginary facts and figures. You are to report a downward tendency
in prices and explain the main causes responsible for it.
ANSWER:

SPECIMEN

KARACHI STOCK EXCHANGE

Karachi, May 30th 2002

Generally, a sagging tendency was noted in the Karachi Stock Exchange on Tuesday with interest
centered round mostly blue chips. Gains and losses were not evenly matched.
In the forward section, Adamjee Cotton which started steady at Rs. 17.75 against the previous close at
Rs. 17.60 declined to Rs. 17.50 to close round Rs. 17.55.
I.C.P after opening 50 paisa higher at Rs. 103.50 came down to Rs. 103.25 this however, could hardly
be maintained.


In the spot section the rates prevalent were as follows:
                                                                                 Rs.
1. Karim Silk                         ─            10                 8.90
2. Sandoz Pak                       ─            10                 6.60
3. Saifi Development              ─            10                 6.50
4. Saifi Textile                        ─            10                 6.40
5. Khaiber Tobacco               ─            10                 9.25


In short, bearish conditions continued to be witnessed in the market while buying remained at loss ebb
the selling pressure continued to mount. The reason for such fall is obvious. Political uncertainty has
shaken the faith in dynamic steps. Nobody is prepared to risk. Naturally, easy conditions prevail in the
market. A firm tone can not be displayed in this situation.