Market Watch: Bourse wanders along the neutral line
The stock market wandered along the neutral line on Monday while trade activity more than halved against the previous trading session.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.13 per cent or 17.96 points to end at the 13,875.74 point level.
Anxiety over the ongoing Pakistan and US negotiations to restore Nato supplies kept investors at bay and momentum on hold, said JS Global Capital analyst Jawad Khan. Major developments and the future of military assistance to Pakistan are all dependent on the success of the ongoing talks and any positive development will bode well for local market sentiment, added Khan.
Trade volumes fell to 81 million shares compared with Friday’s tally of 176 million shares. Volumes were heavily dominated by second and third tier stocks.
DG Khan Cement remained in the limelight as investors accumulated shares in the hope that local cement prices would recover soon amid rumours that federal excise duty is likely to be reduced by Rs250 per ton.
Engro Corporation managed to close in the green amid reports of foreign buying. Foreign institutional investors were net buyers of Rs78 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 361 companies were traded on Monday. At the end of the day 139 stocks closed higher, 143 declined while 79 remained unchanged. The value of shares traded during the day was Rs2.12 billion.
JS Bank was the volume leader with 10.72 million shares gaining Rs0.60 to finish at Rs5.80. It was followed by Jahangir Siddiqui and Company with 8.07 million shares declining Rs0.23 to close at Rs16.34 and DG Khan Cement with 7.22 million shares descending Rs0.21 to close at Rs40.28.
Published in The Express Tribune, May 22nd, 2012.
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