Market watch: Stocks lower as political, economic tensions prevail

Benchmark KSE-100 index loses 52 points.

KARACHI: The stock market plummeted on its Monday opening, but recovered some losses as the day progressed.

“Investors chose to book profits today as uncertainty regarding the future of Pakistan-US relations kept investors cautious,” reported Shakir Padela, analyst at JS Global. “The law and order situation [in Karachi] – coupled with the political situation in the country – kept the trading session dull.”

The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 52.39 points to end at the 13,990.38 point level. Trade volumes fell further to 164.07 million shares, compared with Friday’s tally of 196.16 million shares. The value of shares traded during the day was Rs3.86 billion.

“The index moved in a narrow range amid thin trade. Concerns loomed over the gas shortfall for fertiliser, textile and power sectors. Rising circular debt issues in Pakistan’s energy sector limited foreign interest, after uncertain global stocks [due to the] eurozone debt crises played a catalyst role in bearish sentiments at the KSE,” noted Ahsan Mehanti, director at Arif Habib Corp.

“After touching an intra-day low of 13,890, the KSE-100 index managed to turn green a couple of times, but failed to sustain; closing the day at 13,990 points. Lack of interest kept banks under pressure with National Bank and MCB Bank closing down 4.31% (to Rs45.05) and 1.39% (to Rs172.11) respectively. Fauji Fertilizer Bin Qasim (up 3.3% to Rs43.53) remained in the limelight on the back of rising DAP prices and reported institutional activity,” said Haris Ahmed Batla, analyst at Elixir Securities.

Shares of 369 companies were traded on Monday. At the end of the day 149 stocks closed higher, 156 declined while 64 remained unchanged.

Jahangir Siddiqui Company was the volume leader with 16.27 million shares losing Rs0.99 to finish at Rs14.93. It was followed by TRG Pakistan with 10.30 million shares gaining Rs0.42 to close at Rs4.06 and WorldCall Telecom with 9.31 million shares losing Rs0.22 to close at Rs2.81.

Foreign institutional investors were buyers of Rs304 million and sellers of Rs265.98 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 1^st, 2012.

preN�of � ��> at the national accounts were final for him and the numbers would be defended in front of the governing council.

 

“The Secretary Statistics and DG PBS should have been suspended,” commented a senior government official while highlighting the gravity of the situation adding that the German consultant has also taken a flight back home despite having a contract till July.

The government has delayed Annual Plan Coordination Committee’s meeting, which convened on May 2 to recommend next year’s development budget and set key economic targets.

“Due to rebasing wide variations have been observed that need to be looked into as there is no consistency in data,” said Finance Minister Dr Abdul Hafeez Shaikh while talking to The Express Tribune. He strongly refuted that the ministry wanted to reopen the accounts just to jack up growth figure of the current fiscal year, estimated at 2.8% by PBS on the 2005-06 base year.

“It is a misconception that I or the Finance Ministry has asked the PBS to give economic growth figures according to our wishes, what the government wants is the transparency in the system,” he added.

Published in The Express Tribune, May 1^st, 2012.