Market Watch: Bourse witnesses another lacklustre session

Benchmark 100-share index gains 25 points amid low volumes.

KARACHI:

Lacklustre trading and a directionless market was the theme again for the latest session at the bourse on Thursday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.21 per cent or 24.54 points to end at 11,557.37 point level.

State Bank of Pakistan decision to keep policy rate unchanged failed to bring any momentum despite the market expecting a 50 basis points rate cut, said Elixir Securities equity dealer Sibtain Mustafa.

Early trades added gains in line with regional markets and also possibly because a set of investors believe current monetary stance by central bank reflects genuine concern in restoring growth while addressing macro-economic risks at the same time, added Mustafa.

Overall, volumes continues to trade on the lower side with majority trades in the fertiliser sector after the government decided to cut gas supply to fertiliser plants in a bid to curb power generation issues.

Engro fell 1.2% on renewed concerns of gas availability to its new plant.

Trade volumes fell to paltry level of 27 million shares compared with Wednesday’s tally of 38 million shares.

Foreign institutional investors were buyers of Rs233 million and sellers of Rs185 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited. Shares of 314 companies were traded on Thursday.

At the end of the day 111 stocks closed higher, 108 declined while 95 remained unchanged. The value of shares traded during the day was Rs1.26 billion. Jahangir Siddiqui and Company was the volume leader with 3.32 million shares declining Rs0.22 to finish at Rs5.61. It was followed by Japan Power with 2.51 million shares gaining Rs0.01 to close at Rs0.61 and SilkBank Limited with 1.76 million shares firming Rs0.06 to close at Rs1.65.

Published in The Express Tribune, December 2^nd, 2011.