Market watch: Value of shares traded at 10-week low

Trade volumes fall to alarming level of 31m shares.

KARACHI:

The stock market witnessed yet another lacklustre trading session on Monday with minimal local and foreign participation.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.36 per cent or 43.02 points to end at 11,864.79 points.

Many blame current local politics and lack of triggers for the sluggish sessions being witnessed these days, said Elixir Securities equity dealer Faisal Bilwani.

Moreover, fall in global equity and commodity markets also forced investors to remain on the sidelines. Market stakeholders are set to meet today (Tuesday) at the Karachi Stock Exchange for a brainstorming session to understand and tackle the issue of lack of investor interest, added Bilwani.

Trade volumes fell to a dismal 31.1 million shares compared with Friday’s tally of 38.8 million shares. The brokers’ meeting to discuss current dull volumes will likely bring proposals to simplify tax collection and measures to attract investor interest, however, any long-term solution would need serious attention from the government, added Bilwani.

Foreign institutional investors were net sellers of Rs113 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

National Bank of Pakistan rose 1% on reported foreign buying while Fauji Fertilizer closed marginally positive.

Shares of 327 companies were traded on the first trading session of the week. At the end of the day, 68 stocks closed higher, 141 declined and 68 remained unchanged. The value of shares traded during the day was at 10-week low of Rs1.3 billion.

Bank Alfalah was the volume leader with 5.49 million shares due to expectations of better result and a dividend payout with full-year result. The scrip declined Rs0.03 to finish at Rs12.04. It was followed by Wateen Telecom with 2.10 million shares, gaining Rs0.03 to close at Rs1.88 and National Bank of Pakistan with 1.98 million shares, gaining Rs0.34 to close at Rs44.52.

Published in The Express Tribune, November 22^nd, 2011.