Market watch: Stocks end flat as cautious investors stay away
KSE-100 index ended 0.05 per cent or 6.34 points lower at 12,477 on Thursday.
KARACHI:
Stocks closed flat in a lacklustre session on Thursday amid thin trade as investors preferred to stay on the sidelines ahead of the announcement of monetary policy.
The Karachi Stock Exchange benchmark 100-share index ended 0.05 per cent or 6.34 points lower at 12,477.
In the monetary policy, to be unveiled on Saturday, eight of 10 analysts polled by Reuters expect the central bank to increase its key policy rate by at least 50 basis points to 14.5 per cent to combat double-digit inflation. The central bank had increased the policy rate by 50 basis points to 14 per cent in the preceding review in November.
Fauji Fertiliser Company saw some excitement initially as investors waited for its 2010 results. Despite a 25 per cent growth in earnings compared to last year, the stock lost ground as investors preferred to book gains, said Elixir Securities equity dealer Sara Shahid. The scrip fell Rs2.4 to close at Rs153.66.
Volumes dropped to 112.3 million shares compared with Wednesday’s 137 million shares.
Pakistan State Oil lost 0.86 per cent to close at Rs300.77 on news that the company is coming under severe financial crunch with receivables mounting to Rs140 billion.
“The market is expected to remain dull as investors will refrain from taking fresh positions till the monetary policy is announced,” said Shahid. However, stock-specific activity is likely as key results of Attock Petroleum Limited and Pakistan Oilfields are due on Friday, added Shahid.
Moreover, no major change was seen in Engro’s price following an increase of Rs100 per bag in di-ammonium phosphate (DAP) prices during the day.
Shares of 385 companies were traded on Thursday. At the end of the day, 137 stocks closed higher, 203 declined and 45 remained unchanged. The value of shares traded during the day was Rs4.21 billion.
Lotte Pakistan PTA was the volume leader with 24.92 million shares, gaining Rs0.03 to finish at Rs15.41.
It was followed by Azgard Nine with 17.95 million shares on the back of news that the Competition Commission has given Fauji Fertiliser Company the go-ahead to buy Agritech. Currently, Azgard Nine holds an 80 per cent stake in Agritech, which FFC is seeking to acquire.
Fauji Fertiliser Company was the third in the volumes chart with 7.27 million shares.
Published in The Express Tribune, January 28th, 2011.
Stocks closed flat in a lacklustre session on Thursday amid thin trade as investors preferred to stay on the sidelines ahead of the announcement of monetary policy.
The Karachi Stock Exchange benchmark 100-share index ended 0.05 per cent or 6.34 points lower at 12,477.
In the monetary policy, to be unveiled on Saturday, eight of 10 analysts polled by Reuters expect the central bank to increase its key policy rate by at least 50 basis points to 14.5 per cent to combat double-digit inflation. The central bank had increased the policy rate by 50 basis points to 14 per cent in the preceding review in November.
Fauji Fertiliser Company saw some excitement initially as investors waited for its 2010 results. Despite a 25 per cent growth in earnings compared to last year, the stock lost ground as investors preferred to book gains, said Elixir Securities equity dealer Sara Shahid. The scrip fell Rs2.4 to close at Rs153.66.
Volumes dropped to 112.3 million shares compared with Wednesday’s 137 million shares.
Pakistan State Oil lost 0.86 per cent to close at Rs300.77 on news that the company is coming under severe financial crunch with receivables mounting to Rs140 billion.
“The market is expected to remain dull as investors will refrain from taking fresh positions till the monetary policy is announced,” said Shahid. However, stock-specific activity is likely as key results of Attock Petroleum Limited and Pakistan Oilfields are due on Friday, added Shahid.
Moreover, no major change was seen in Engro’s price following an increase of Rs100 per bag in di-ammonium phosphate (DAP) prices during the day.
Shares of 385 companies were traded on Thursday. At the end of the day, 137 stocks closed higher, 203 declined and 45 remained unchanged. The value of shares traded during the day was Rs4.21 billion.
Lotte Pakistan PTA was the volume leader with 24.92 million shares, gaining Rs0.03 to finish at Rs15.41.
It was followed by Azgard Nine with 17.95 million shares on the back of news that the Competition Commission has given Fauji Fertiliser Company the go-ahead to buy Agritech. Currently, Azgard Nine holds an 80 per cent stake in Agritech, which FFC is seeking to acquire.
Fauji Fertiliser Company was the third in the volumes chart with 7.27 million shares.
Published in The Express Tribune, January 28th, 2011.