Market Watch: Stock market braces after two days of positivity

Benchmark KSE-100 index sheds 16 points.

KARACHI: The stock market steadied itself near four-year-high levels on Thursday; volumes shrunk to more modest levels from the previous day and profit taking was witnessed in some sectors. The Securities and Exchange Commission of Pakistan’s (SECP) announcement of a delay in relief for the capital gains tax (CGT) took some wind out of the bourse’s sails – which had seen sentiments soar during the week despite adverse socio-political developments in the country’s financial hub.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index lost 0.12% or 16.31 points to end at the 13,559.10 point level.

Trade volumes fell to 344.58 million shares compared with Wednesday’s tally of 450 million shares. The value of shares traded during the day was Rs6.34 billion.

Despite traders booking profits, “a buying spree was witnessed in banking stocks like Bank Alfalah Limited, Askari Commercial Bank and the National Bank of Pakistan (NBP) after the central bank reported lowest accumulation of non-performing loans during the last quarter. Foreign institutional investors were rumoured buyers in fertilisers, while locals were seen buying into mid-size banks,” said JS Global Analyst Murtaza Jafar. NBP closed near its upper limit (appreciating 4.99%) for the third consecutive day this week.

Lafarge Pakistan was the volume leader after declaration of profits in the quarter ended December 2011; 50.20 million shares of its shares were traded, gaining a whopping 10.61% or Rs0.42 to finish at Rs4.38. It was followed by Jahangir Siddiqui Company Limited with 25.42 million shares losing Rs1.04 to close at Rs21.35 and Pace Pakistan Limited with 23.68 million shares gaining a tidy 7.93% or Rs0.23 to close at Rs3.13.

Foreign institutional investors were net sellers of Rs55.74 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 30^th, 2012.