Market watch: Stock market falls in dull session

KSE-100 benchmark index loses 96 points.

KARACHI: The stock market fell in a dull session on the first trading session of the week despite gains in global markets. The KSE-100 benchmark index lost 96 points or 0.85% to end the day at 11,166.10 points.

Sentiments remained bearish at KSE as investors remained concerned over volatile global capital and commodity prices after US economic slowdown and Europe’s debt crisis, said Arif Habib Investments Director Ahsan Mehanti.

Volume at the Karachi Stock Exchange (KSE), in rupee terms, hit an eight-session low as only Rs1.3 billion worth of shares were traded, said Topline Securities equity dealer Samar Iqbal. Illiquid Nestle and Unilever negatively affected the KSE-100 index by contributing 52 points in total loss of 96 points, Iqbal added.

Volumes were low as most of the activity was witnessed by daily jobbers as institutions remained sidelined because of continued gas issues and reports of flooding in central Sindh, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Trade volumes dropped to a dismal level of 25.9 million shares compared with Friday’s 53.9 million shares. The total value of trade on Monday was worth Rs1.27 billion.

Foreign institutional investors also lost confidence in the market and were net sellers of Rs71.7 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited.

Shares of 75 companies rose while 124 companies declined and 89 remained unchanged.

Pakgen Power remained in the limelight after announcing unexpectedly higher payout on Friday. The Nishat company announced higher than expected cash dividend of Rs5 per share with its results on Friday.

Pakgen Power Limited was the volume leader with 7.08million shares gaining Rs0.62 to finish at Rs20.39. It was followed by Nishat Mills with 1.21 million shares with a loss of Rs0.68 to close at Rs42.64 and National Bank with 1.16 million shares decreasing by Rs0.47 to close at Rs45.56.

Published in The Express Tribune, August 16^th, 2011.