The bourse continued to move sluggishly on Tuesday, with most investors sticking to the sidelines ahead of the Supreme Court’s verdict regarding its instructions to the prime minister to write a letter to Swiss authorities, requesting the reopening of graft cases against the president.
“Politics played on investors’ minds, as the federal government submitted its reply in the Supreme Court, saying that it has not yet decided to write the letter to Swiss authorities, and that the Prime Minister is constitutionally bound to the advice of the cabinet,” said Jawad Khan, analyst at JS Global.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index pared 0.10% or 15.18 points to end at the 14,512.07 points level.
“Market once again displayed lacklustre activity in the absence of any positive news. Volumes remained low and shares price moved in a narrow band,” commented Topline Securities equity dealer Samar Iqbal.
Trade volumes improved, but were still dismal at 57 million shares compared with Monday’s tally of 28 million shares. The value of shares traded during the day was Rs1.44 billion.
“Activity remained thin despite strong corporate earnings outlook,” added Ahsan Mehanti, from Arif Habib Corp.
Shares of 260 companies were traded on Tuesday. At the end of the day 75 stocks closed higher, 127 declined while 58 remained unchanged.
“General activity remained confined to DG Khan Cement and Hub Power Company, while the broader market remained largely dull,” said Khan. “Fauji Fertilizer is expected to announce second quarter earnings later in the evening today, amid expectations of a better payout, but it failed to invite fresh buying.”
JS Growth Fund was the volume leader with 13.18 million shares losing Rs0.17 to finish at Rs7.91. It was followed by Nishat Chunian Power with 7.86 million shares losing Rs0.09 to close at Rs15.26 and DG Khan Cement with 4.26 million shares gaining Rs0.16 to close at Rs44.94.
Foreign institutional investors were buyers of Rs120.68 million and sellers of Rs36.79 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, July 25th, 2012.