Stocks end flat as investors remain cautious

A cautious approach from investors made the stock market index fluctuate around previous day’s closing level on Friday before ending marginally higher, dealers said.

The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.13 per cent or 12.74 points higher at 9,860.35.

There was hardly any excitement as participants were searching for a convincing reason to buy despite good values, according to a dealer at Elixir Securities, Faisal Bilwani.

Locals largely remained sidelined with no reports of significant activity from foreign investors in the market, added Bilwani.

Progress on introduction of margin trading system is likely to be the focus of attention during a meeting of the Karachi Stock Exchange Board on August 26 in the absence of any major triggers in coming days, said Bilwani.

Trade volumes fell to a paltry 43.3 million shares compared with Thursday’s tally of 56 million shares as floods and Ramazan kept investors away.

The World Bank has also decided to give a $1 billion loan for reconstruction of flood-hit areas. The Asian Development Bank a day earlier also offered a $2 billion emergency package.

The floods, triggered by torrential monsoon rains, have killed up to 1,600 people and disrupted the lives of about 20 million, nearly 12 per cent of the population.

The finance ministry has already said that the country would miss this year’s 4.5 per cent gross domestic product (GDP) growth target. Growth was 4.1 per cent in the previous fiscal year.

KASB Bank was the top gainer of the day, jumping 8.57 per cent to close at Rs2.66.

Shares of 341 companies were traded on Friday. At the end of the day, 144 stocks closed higher, 172 declined and 25 remained unchanged. The value of shares traded during the day was Rs1.5 billion.

Lotte Pakistan PTA was the volume leader with 7.12 million shares as interest grew in the scrip ahead of the announcement of company earnings on August 25. The stock increased Rs0.15 to finish at Rs8.1. It was followed by Arif Habib Securities with 3.45 million shares gaining Rs0.26 to close at Rs25.74 and Silkbank Limited with 3.28 million shares gaining Rs0.26 to close at Rs2.65.

Published in The Express Tribune, August 21^st, 2010.