KARACHI:
The stock market closed fiscal 2011-12 flat on Friday, but up nearly 26% year-to-date supported by cements and second tier stocks. Fertilisers were in the limelight during the trading session due to mixed news on the grapevine regarding increases in gas prices for the sector.
Additionally, “Oil and Gas Development Company closed up 1.8%, which the majority believes was aimed at window dressing the index close at the half year end,” noted Elixir Securities analyst Sibtain Mustafa. The index closed up 3% month-to-date. “Furthermore, the new index based on free-float methodology is being introduced from Monday, which will run parallel to the current index.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell by a marginal 0.03% or 4.01 points to end at the 13,801.41 points level.
“Stocks closed lower amid concerns for global markets,” commented Ahsan Mehanti from Arif Habib Corp. Foreign institutional investors were net sellers of Rs103.57 million, according to data maintained by the National Clearing Company of Pakistan Limited.
“Thinner trading [was] witnessed pending judicial decisions on NRO implementation. Rising political uncertainty and fall in foreign exchange reserves played a catalyst role in bearish sentiments, despite hopes for improvement in Pak-US ties on resumption of Nato supplies.”
Trade volumes improved to 74 million shares compared with Thursday’s tally of 63 million shares. The value of shares traded during the day was Rs3.04 billion.
Shares of 446 companies were traded on Friday. At the end of the day 109 stocks closed higher, 146 declined while 191 remained unchanged.
“Fauji Fertilizer traded 11% of overall volumes on reported state fund selling that was supported by foreigner and local banks buying,” reported Mustafa. “MCB Bank weathered broader index dullness and managed to close near recent highs [up 1%] … as investors shopped on cheap valuations over earnings outlook.”
Fauji Fertilizer was the volume leader with 6.33 million shares losing Rs0.89 to finish at Rs111.05. It was followed by Fatima Fertilizer with 5.50 million shares gaining Rs0.11 to close at Rs24.67 and Soneri Bank with 5.17 million shares losing Rs0.10 to close at Rs7.39.
Published in The Express Tribune, June 30th, 2012.
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