Index-heavy MCB Bank was a major loser and even traded at its lower circuit breaker during the day. PHOTO: INP/FILE
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.63% or 161.70 points to end at 25,417.63 points on Monday.
“Equities recorded institutional selling in banks after the second consecutive decline in weekly inflation,” said Muhammad Raza Rawjani of Elixir Securities. “This has reduced the chances of a 100-basis-point hike in the discount rate, pushing the index into negative territory.”
Index-heavy MCB Bank was a major loser and even traded at its lower circuit breaker during the day. On the other hand, textile shares, especially companies in the composite sector, like Nishat Mills (+2.6%), continued to draw investor interest, as valuations were yet to incorporate the full impact of GSP Plus status, Rawjani said.
“Laggard players like cement also performed well. Stocks such as IPPs (Independent Power Producers) and high-yielding fertiliser companies were also seen in demand, suggesting a preference for less-risky plays at current … high index levels,” he said.
Ovais Ahsan of JS Global described profit-taking as the theme of the day as MCB (-4.69%) and Engro (-1.9%) drove the market into the red zone.
“The US bill passed over the weekend linking aid with smooth operations through Nato supply routes sparked caution as receipts of over $1 billion from the coalition support fund remain suspended on account of blockade of the routes,” Ahsan said.
News flow from the macroeconomic front also remained negative as current account numbers revealed on Friday showed a deficit of $1.89 billion in the first five months of the current fiscal year versus a deficit of $684 million for the same period last year, he added.
Urea giant Fauji Fertiliser Company announced its intention on Monday to invest up to Rs750 million in its food venture, which invited investor interest. Trade volumes fell to 195 million shares compared with Friday’s tally of 273 million shares.
Shares of 360 companies were traded. At the end of the day, 130 stocks closed higher, 204 declined and 26 remained unchanged. The value of shares traded during the day was Rs7.6 billion.
Pakgen Power was the volume leader with 25.5 million shares, gaining Rs0.13 to finish at Rs21.04. It was followed by Fauji Cement with 12.6 million shares, gaining Rs0.37 to close at Rs14.70 and Dewan Cement with 8.5 million shares, gaining Rs0.20 to close at Rs7.20. Foreign institutional investors were net sellers of Rs288 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 24th, 2013.
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