Market Watch: Stocks range-bound as market consolidates

Published: April 28, 2012

Benchmark KSE-100 index sheds 23 points.

KARACHI: Activity in the stock market was range-bound on the last day of the trading week, as investors remained cautious following the Supreme Court’s verdict against Prime Minister Yousaf Raza Gilani and its uncertain political fallout. However, there remained an element of positivity as the market consolidated – investors were quick to snap up front-line stocks on price erosions.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index down 0.17% or 23.32 points to end at the 14,042.77 point level.

“Lower than expected profits by National Bank of Pakistan (NBP) and Nishat Mills (NML) resulted in profit taking in key stocks. NBP came down after first quarter profits failed to meet investors’ expectations,” reported Samar Iqbal, equity dealer at Topline Securities.

“NML also announced its result today, reporting below-expected earnings of Rs1.79 for the third quarter, and closed the day down 2.8%. Oil and Gas Development Company posted earnings of Rs6.43 for the third quarter, which was well above market estimates,” added Khan.

Trade volumes shrunk to 196.16 million shares compared with Thursday’s tally of 270.53 million shares. The value of shares traded during the day was Rs5.65 billion.

“Accumulation [was seen] on dips, mainly in dividend yielding frontline stocks; while speculative stocks, which were major volume contributors in previous sessions , continued to witness massive onslaught – disallowing short term traders an intraday punting opportunity,” said Hasnain Asghar Ali, SVP Equity Sales at Invisor Securities.

Shares of 359 companies were traded on Friday. At the end of the day 131 stocks closed higher, 169 declined while 59 remained unchanged.

Jahangir Siddiqui Company was the volume leader with 15.21 million shares losing Rs1.00 to finish at Rs15.92. It was followed by NBP with 13.78 million shares losing Rs1.72 to close at Rs47.08 and DG Khan Cement with 12.64 million shares losing Rs0.13 to close at Rs40.12.

Foreign institutional investors were buyers of Rs700.57 million and sellers of Rs174.29 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 28th, 2012.

on Twitter, become a fan on Facebook

More in Business