Market watch: Lazy index takes a fall

Benchmark KSE-100 index declines 124.17 points

KARACHI: The bourse experienced yet another dull day as the KSE-100 failed to attract interest on reported local institutional selling. 

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.42% or 124.17 points to end at 29,353.12.

Elixir Securities analyst Sibtain Mustafa said equities failed to break their dull streak and lost another 125 points to close below 29,400.



“Morning rumours of state funds hunting block buyer in absence of system bids dragged index, led by losses in MCB Bank (MCB)  -0.9%, United Bank (UBL) -1.2% and Pakistan State Oil (PSO) -1.4%,” said Mustafa.

“Overall participation was very limited as major institutional players remained sidelined and are eyeing 29k on thin volumes however retail driven activity in small caps did see some improvement.”

Meanwhile, JS Global analyst Rizvi said bears dominated the market. “Investors continue to remain on the sidelines due to lack of triggers and delay in Monetary Policy Statement announcement as volumes were recorded at only 67mn shares,” said Rizvi.

Trade volumes slightly rose to 66 million shares compared with Wednesday’s tally of 38 million.

Shares of 299 companies were traded on Thursday. At the end of the day, 77 stocks closed higher, 198 declined while 24 remained unchanged. The value of shares traded during the day was Rs2.79 billion.



K-Electric Limited was the volume leader with 7.4 million shares, declining Rs0.17 to finish at Rs8.00. It was followed by Lafarge Pakistan with 5.3 million shares, losing Rs0.20 to close at Rs15.88 and Summit Bank Limited with 3.5 million shares, staying constant to close at Rs10.00.

Foreign institutional investors were net buyers of Rs289 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 11^th, 2014.

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