KARACHI: The stock market endured another round of dull trading as the index remained range-bound amid absence of triggers.
Despite an upward open, the KSE-100 dived into the negative zone as investors opted to remain on the sidelines. It continued to oscillate in the red and green zone, finishing with a minimal change. Lack of any significant trigger kept market participants in a fix whether to invest at these levels. Some interest was seen later in the day on back of higher global crude oil prices and receipt of first tranche from the International Monetary Fund (IMF).
At the end of trading, the benchmark KSE 100-share Index recorded a decrease of 15.53 points, or 0.05%, to settle at 33,840.05.
According to AHL Research report the market remained range bound amidst low volumes. Wednesday marked the fourth consecutive session that ended below 60 million volumes and one of the lowest in recent days.
“Absence of any significant trigger kept the investors in a fix whether to invest at these levels. The prime minister’s visit to Karachi also failed to motivate investors to take a view on market.”
JS Global analyst Maaz Mulla said the local bourse remained dull on Wednesday as the index made an intraday low and high of 59 and 99 points, respectively.
“Volumes remained lacklustre as 41 million shares changed hands,” he commented.
On news front, the State Bank of Pakistan (SBP) received $1 billion from the International Monetary Fund (IMF) as the first tranche of bailout package on Tuesday night for balance of payments support.
Investor’s interest was seen in the cement sector where Cherat Cement (+4.7%), Pioneet Cement (+2.1%), Maple Leaf Cement (+0.7%) and DG Khan Cement (+0.3%) closed in the green zone.
“Moving forward, we expect market to show some strength on back of the ongoing meetings of prime minister with business community to promote economic activity,” the analyst added.
Overall, trading volumes decreased to 40.6 million shares compared with Tuesday’s tally of 60.2 million. The value of shares traded during the day was Rs1.6 billion.
Shares of 301 companies were traded. At the end of the day, 118 stocks closed higher, 163 declined and 20 remained unchanged.
Dost Steels was the volume leader with 3.5 million shares, gaining Rs0.53 to close at Rs3.84. It was followed by Quice Food with 2.53 million shares, gaining Rs0.24 to close at Rs3.04 and Maple Leaf Cement with 2.48 million shares, gaining Rs0.17 to close at Rs23.35.
Foreign institutional investors were net buyers of Rs193.5 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan.