KARACHI: The stock market closed flat on the last trading session of the week in a mixed session.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.09 per cent or 11.86 points to end at the 13,925.06 point level on Friday.
Massive foreign inflows failed to spark any buying interest amongst local institutions that await announcement of budget fiscal 2013 on June 1, said market experts.
The bourse did gain 50 points in the first half of the session with investors trying to grab hold of the hot stock Hub Power Company.
Rupee falling to a record low against the dollar rose the possibility of better earnings going ahead, said Elixir Securities equity dealer Sibtain Mustafa. The country’s largest independent power producer is paid in dollars, hence a fall in the rupee automatically jacks up revenue levels.
Trade volumes fell to 165 million shares compared with Thursday’s tally of 178 million shares.
Fertilizers struggled after recent decline in Fauji Fertilizer Company as investors remained confused over the government’s decision to impose a gas duty in the upcoming budget along with mixed views over earnings outlook as fertiliser companies struggle to sell their inventory.
Foreign institutional investors (FII) were net buyers of Rs293 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Momentum is expected to remain subdued till the budget, however, one cannot rule out stock specific activity mainly guided by foreign and local institutional flows.
Shares of 361 companies were traded on Friday. At the end of the day 155 stocks closed higher, 123 declined while 83 remained unchanged. The value of shares traded during the day was Rs5.35 billion.
Hub Power Company was the volume leader with 27.07 million shares gaining Rs1.83 to finish at Rs40.85. It was followed by BankIslami Pakistan with 13.92 million shares firming Re1 to close at Rs11.20 and Pakistan Telecommunication Company Limited with 12.51 million shares increasing Rs0.48 to close at Rs15.87.
Published in The Express Tribune, May 26th, 2012.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ