Index falls as investors prefer the sidelines

Benchmark KSE-100 index falls 43 points.


Our Correspondent July 06, 2011

KARACHI: The stock market fell on Wednesday as investors opted the wait and watch approach.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.34 per cent or 42.93 points to end at 12,533.55 point level.

Broader market failed to bring any fresh liquidity as local investors preferred to wait for any development on the political front as a grand alliance between Muttahida Qaumi Movement and Pakistan Muslim League‐Nawaz would result in strong opposition for the ruling Pakistan People’s Party-led government, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Furthermore, investors avoid taking any bets as currently the index trades at its recent year high, added Muttalib. Trade volumes fell to 68.5 million shares compared with Tuesday’s tally of 71 million shares.

Foreign institutional investors were net buyers of Rs18.2 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Some trading activity was witnessed in selected stocks specifically in the banking sector as rumours of lower provisioning expected to boost bank’s earnings in the current year. National Bank of Pakistan was yet again in the limelight, third in the volumes leaders’ list, as investors preferred to buy on cheap valuations.

Moreover, Engro finally gained 1.14 per cent reflecting gradual increase in investors’ confidence amid rumours of settlement of its gas supply issues to its new fertiliser plant. The scrip had plummeted more than 16 per cent in June.

Shares of 348 companies were traded on Wednesday. At the end of the day 119 stocks closed higher, 103 declined while 126 remained unchanged. The value of shares traded during the day was Rs2.7 billion.

Lotte Pakistan PTA was the volume leader with 11.55 million shares gaining Rs0.65 to finish at Rs13.58. It was followed by Dewan Salman with 6.1 million shares rising Rs0.15 to close at Rs2.76 and National Bank of Pakistan with 5.3 million shares firming Rs0.18 to close at Rs54.18.

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