Market watch : Stock market drops in dull session

NIB Bank right shares worth one paisa ends as volume leader

KARACHI:

Stock market fell in a lacklustre session on Tuesday as investors kept their distance from the trade session.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.25 per cent or 30.43 points to end at 12,364.06 point level.

Although MCB Bank performed well after its better than expected result announcement but other heavyweights from the exploration and oil marketing companies sectors witnessed profit taking, and pulled the index down, said Samar Iqbal Equity Dealer Topline Securities

MCB Bank’s earnings per share jumped 33 per cent to Rs12.64 along with a second interim dividend of Rs3 per share. The bank remained firm and closed up 1.5 per cent despite rumours of offshore selling.

Foreign institutional investors were net sellers of Rs197 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Pakistan State Oil underwent some selling pressure and closed down 1.5 per cent despite news that it is expected to receive Rs16 billion from power companies by the end of this week, according to analysts.

Trade volumes gained to 54.5 million shares compared with Monday’s tally of 32.82 million shares but still at a dismal level.

Low volume drive continued as investors’ eye the upcoming monetary policy as the resignation of State Bank’s governor Shahid Kardar has raised suspicion that the policy will likely be politically motivated, said Elixir Securities equity dealer Sibtain Mustafa. NIB Bank was the volume leader with 18.05 million shares remaining unchanged at Re0.01. It was followed by JS Investment with 4.15 million shares million shares closing flat at Rs5.11 and Fauji Fertiliser Bin Qasim with 2.1 million shares declining Rs0.2 to close at Rs47.08.

Fertiliser stocks ended marginally down after gas curtailment increased by 20 per cent putting a question mark to higher earnings as shortage of gas is a rising threat for the industry, added Mustafa.

Shares of 366 companies were traded on Tuesday. At the end of the day 95 stocks closed higher, 170 declined while 101 remained unchanged. The value of shares traded during the day was Rs1.77 billion.

Published in The Express Tribune, July 27^th,  2011.