KARACHI: Continuing uncertainty over US-Pakistan relations made for a lacklustre opening to the week’s trading at the Karachi Stock Exchange (KSE) on Monday. Volumes remained significantly low in a range-bound session, as investors were cautious in the absence of new developments in the resumption of Nato supplies through Pakistan.
The KSE’s benchmark 100-share index dropped marginally by 0.01% or 1.72 points to end at the 14,228.77 point level. Trade volumes plummeted to 101.42 million shares compared with Friday’s tally of 237 million shares. The value of shares traded during the day was Rs3.8 billion.
“Banking stocks showed some strength; United Bank jumped 3.5%, followed by National Bank, which jumped 1.8%. Oil stocks remained depressed and witnessed dismal volumes. Nishat Mills performed well and gained 2.3%. Cements showed remarkable strength after being browbeaten last week; Lucky Cement jumped 0.5%, while DG Khan Cement (DGKC), after remaining in the red for the better part of the day, managed a positive closing,” reported Jawad Khan, analyst at JS Global.
“Pakistan Telecommunications Company Limited (PTCL) saw decent volumes on rumours of an official notification to allow the establishment of an International Clearing House to be announced this week,” added Sibtain Mustafa, analyst at Elixir Securities. “Overall, sentiment remained mixed with locals eyeing foreigner flows to continue and support the momentum,” noted Mustafa.
PTCL was the volume leader with 11.27 million shares gaining Rs0.28 to finish at Rs16.36. It was followed by Jahangir Siddiqui Company with 9.14 million shares gaining Rs0.41 to close at Rs16.19 and DGKC with 7.9 million shares gaining Rs0.44 to close at Rs44.95.
Foreign institutional investors were buyers of Rs746.36 million and sellers of Rs339.82 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 15th, 2012.
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