Stocks flat as volumes fall to dismal level

KARACHI: The stock market remained dull on Monday with turnover significantly lower than the last few sessions as there was no major trigger to move the market, analysts said.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.02 per cent, or 1.64 points, to end at 10,297.68.

“The market witnessed selling at strong levels,” said Equity Head at IGI Securities, Zainab Jabbar.

Volumes fell to a paltry 40.19 million shares compared with 67.39 million shares traded on Friday as leading local financial institutions remained on the sidelines, said Jabbar.

The market is expected to hit 10,300 points and then a correction of 300 points will occur, added Jabbar.

Focus of investors is also on the monetary policy statement due on July 30, dealers said. Majority of analysts expect the discount rate to remain unchanged.

The market is expected to remain positive in the near term with the corporate results season starting, said Elixir Securities analyst Nazim Abdul Muttalib. Any developments on the leverage product will just add positive sentiment to the market, added Muttalib.

Shares of 388 companies were traded during the session. Of these 125 stocks closed higher, 241 declined and 22 remained unchanged. Trade was dominated by second and third-tier stocks. The value of shares traded during the day was Rs1.57 billion.

Banking giant MCB Bank was among the gainers on talk of a possible foreign accumulation in the scrip. MCB stock price surged Rs2.15 to end at Rs212.09. Habib Bank gained as anticipation about its earnings, which is scheduled for July 28, grew.

Oil and Gas Development Company (OGDC) remained in the limelight with most deals taking place at Rs152 which was incidentally the rate of three million shares which were crossed last Friday, which signals further crossing is in the offing.

‘Crossed’ is a situation when the bid price of a security exceeds the asking price. This scenario occurs mostly in volatile and high-volume trading.

Jahangir Siddiqui and Company was the volume leader with 4.7 million shares, losing Rs0.16 to finish at Rs14.91. It was followed by Byco Petroleum with three million shares, gaining Rs0.18 to close at Rs12.65 and TRG Pakistan with 2.8 million shares, losing Rs0.19 to close at Rs4.04.

Published in The Express Tribune, July 27^th, 2010.