KARACHI:
The stock market witnessed another dull session with the index trading in a narrow range of 40 points ahead of two key events, the monetary policy and the annual budget.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index eased 0.05 per cent or 5.8 points to end at 11,879 point level.
“This is a cyclical trend as investors hold their investment decisions ahead of the annual budget announcement,” said BMA Capital technical analyst Nurali Barkatali. Thus, up till the budget announcement, which is expected on May 28, activity is likely to remain subdued, added Barkatali.
Trade volumes stood at a dismal level of 40 million shares compared with Wednesday’s tally of 37 million shares.
Foreign institutions were rumoured buyers in the fertiliser sector while locals preferred to remain on the sidelines owing to uncertainties on taxation measures in the upcoming budget for the fiscal 2012, according to an analyst.
Refinery stocks witnessed selling after news reports that the Planning Commission had recommended removal of deemed duty in upcoming budget.
Engro stock remained under selling after Sui Northern Gas Pipeline Limited (SNGPL) had cut gas supply to the new fertiliser plant, despite earlier orders of the High Court calling for its restoration. The company has filed a contempt of court application against SNGPL in the Sindh High Court. The company scrip fell Rs1.48 to close at Rs190.83. Value of shares traded during the day was Rs1.4 billion.
Low priced stocks led the volumes chart as SilkBank remained the volume leader with 7.38 million shares gaining Rs0.05 to finish at Rs2.95. It was followed by Jahangir Siddiqui and Company with 3.98 million shares declining Rs0.21 to close at Rs6.94 and Lotte Pakistan PTA with 2.54 shares losing Rs0.1 to close at Rs14.73.
Published in The Express Tribune, May 20th, 2011.
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