Market Watch: Bourse gains in dull session

Value of shares traded drops to two-month low.

KARACHI: Equities dragged along the neutral line in another sluggish session as lack of participation by local institutions and thin foreign flows kept overall activity extremely dull on Monday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.25 per cent or 30.45 points to end at 12,008.48 points.

Bank Alfalah accounted for 27% of the overall market volume as investors remained optimistic about its outlook after recent changes in the bank’s top management, said Elixir Securities equity dealer Sibtain Mustafa. Market rumours of a local bank building large positions has pushed the stock up by 10% since last week, added Mustafa.

Trade volumes climbed marginally but still stood low at 40 million shares compared with Friday’s tally of 39 million shares. The value of shares traded during the day fell to a two-month low of Rs1.95 billion.

Positive news flow regarding oil discovery for the Oil and Gas Development Company and Pakistan Petroleum Limited received a muted response as the news came in line with market expectations, according to analysts.

Buying interest was witnessed in Pakistan Oilfields owing to expectations of discovery of oil in Domail-II field and impressive results in the upcoming quarter, according to analysts.

Foreign institutional investors were net sellers of Rs99.6 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

Fauji Fertilizer Company gained 1.96% as it started trading spot on Monday and investors are expecting good payout in the next board meeting likely in January 2012.

Shares of 329 companies were traded on the first trading session of the week. At the end of the day, 88 stocks closed higher, 142 declined and 99 remained unchanged.

Bank Alfalah was the volume leader with 10.7 million shares, declining Rs0.13 to finish at Rs11.76. It was followed by Lotte Pakistan PTA with 2.93 million shares, losing Rs0.27 to close at Rs10.98 and Meezan Bank with 2.3 million shares, falling Rs0.27 to close at Rs19.88.

Published in The Express Tribune, November 15^th,  2011.