KSE creeps up while volumes drop

KARACHI: The stock market went up for a second consecutive day on Wednesday but this time by only 27.11 points.

Positive sentiments were witnessed during early trade on reports of foreign buying and an increase in aid pledges for flood victims. However, gains in the first half were offset by profit-taking later on in the day.

“Positive sentiments were seen since the beginning of the session and during the first half, the index went as high as 9,767 points. However, the market would stop shy off the 9,800 mark, and some profittaking by local institutions was witnessed around that level,” according to Muzzamil Mussani at JS Global Capital.

The Karachi Stock Exchange’s benchmark 100-share index went up by about 0.28 per cent to close at 9,705 points. Only 59.5 million shares were traded during the day, seven per cent less than Tuesday, a sign that people are still reluctant to invest in the market. The major activity was seen is second and third-tier stocks, according to Samar Iqbal from Topline Securities.

Shares of 339 companies were traded on Wednesday. At the end of the day, 147 stocks closed higher while 175 declined and 17 remained unchanged. The value of the shares traded during the day was Rs1.92 billion. With a trade volume of 10.64 million shares, Lotte Pakistan PTA (LOTPTA) emerged as the volume leader. “LOTPTA remained volume leader on the back of earning expectations,” added Iqbal.

The scrip went up by 2.71 per cent to close at Rs7.59 per share. Mussani was of the view that the company’s stock picked up in anticipation of higher polyester staple fibre demand following the damage to cotton crop in the recent floods.

JS and Company followed with a trade volume of 4.6 million shares. The scrip lost Rs0.23 to settle at Rs10.83 per share. TRG Pakistan Limited was the third market leader with 4.47 million shares traded. According to Nurali Barkatali, a technical analyst at BMA Capital, the market is expected to continue its corrective trend towards the 9,300 level after maturing at around 9,860 points.

Published in The Express Tribune, August 19th, 2010.