Market Watch: Investors wary as market remains range-bound

Benchmark KSE-100 index sheds 8 points.


Our Correspondent April 20, 2012

KARACHI: The stock exchange tested the 14,000 point barrier once again on Thursday, but the end of the trading session saw the benchmark index close marginally in the red after bearish investors booked profits near higher levels.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.06% or 8.48 points to end at the 13,929.47 point level.

Trading remained range-bound as investors chose to hedge their bets on the much-anticipated announcement of the revised capital gains tax regime. Meanwhile, “Stronger corporate earnings in oil and cement sectors invited limited institutional support.  Concerns loomed over [an] uncertain economic outlook and limited foreign interest, as global commodities showed [a] falling trend,” said Ahsan Mehanti, director at Arif Habib Corp.

Trade volumes climbed to 307.93 million shares compared with Wednesday’s tally of 261.52 million shares. The value of shares traded during the day was Rs7.48 billion.

Shares of 383 companies were traded on Thursday. At the end of the day 141 stocks closed higher, 166 declined while 76 remained unchanged.

“Selling in Exploration and Production stocks and Engro led [the] market to fall marginally,” said Topline Securities Equity Dealer Samar Iqbal. “DG Khan Cement (DGKC) remained in the limelight and closed at its upper limit due to hopes of a better full year result. Similarly, Engro foods also closed at its upper limit after a better-than-expected quarter result.”

Engro Foods closed up Rs2.24 at Rs47.08; meanwhile, DGKC closed the day at Rs43.32, up Rs1.91.

Azgard Nine was the volume leader with 45.30 million shares losing 1.58% or Rs0.15 to finish at Rs9.34. It was followed by Bank Alfalah with 30.26 million shares gaining 5.23% or Rs0.84 to close at Rs16.90 and Jahangir Siddiqui Company with 26.17 million shares gaining 5.55% or Rs0.99 to close at Rs18.83.

Foreign institutional investors were buyers of Rs632.28 million and sellers of Rs334.24 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 20th, 2012.

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