Market watch: Thin trade witnessed as market falls 84 points

Controversial economic report, lack of triggers keeps interest low.

KARACHI:

Bearish activity was witnessed on Thursday amid yet another dull session in the absence of any triggers.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.71 per cent or 84.34 points to end at the 11848.84-point level.

The index was dragged down over the course of the day as local investors preferred to stay on the sidelines, keeping volumes low with second-tier stocks among top volume generators, said Elixir Securities analyst Sara Shahid.

Oil stocks applied downward pressure as index heavyweight Oil and Gas Development Company (OGDC) lost ground to close 1.61 per cent lower, despite high oil prices raising expectations of higher profits.

Trade volumes fell to paltry level of 54.56 million shares compared with Wednesday’s tally of 88.03 million shares. Shahid expected range-bound activity to continue, though near-term corporate results could spark activity, despite ongoing system issues pertaining to the Margin Trading System.

A controversial US report also affected investor sentiment, while interest was confined to cement stocks, according to Arif Habib Investments Limited Director Ahsan Mehanti.

Cement stocks, however, continued to rally on higher prices and demand, with Lucky Cement gaining 2.14 per cent owing to foreign and local interest.  Shares of 367 companies were traded on Thursday. At the end of the day, 121 stocks closed higher, 161 declined, while 85 remained unchanged. The value of shares traded during the day was Rs2.62 billion.

Pak Reinsurance Ltd was the volume leader with 6.63 million shares, gaining Rs0.37 to finish at Rs20.2. It was followed by Pakistan International Airlines (PIA) with 5.73 million shares, gaining Rs0.02 to close at Rs2.7, and Lucky Cement Ltd with 4.56 million shares, gaining Rs1.47 to close at Rs70.14.

Published in The Express Tribune, April 8^th,  2011.