The ‘Ramazan effect’ – which has taken much of the wind out of the bourse’s sails – took its toll on yet another day of trading: the country’s largest stock market closed flat despite positive news flows and greater investor participation.
Topline Securities equity dealer Samar Iqbal said activity was mixed and share prices remained largely unaltered, despite news of reduction in Treasury bill yields and likely reimbursement of $1.1 billion by the US for the Coalition Support Fund (CSF).
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed a nominal 0.08% or 11.39 points to end at the 14,553.29 points level. Trade volumes climbed marginally to 81 million shares compared with Wednesday’s tally of 57 million shares. The value of shares traded during the day was Rs2.96 billion.
Hasnain Asghar Ali, COO of Escorts Capital, said that frontline stocks are witnessing a technical reshuffle, while sidelined participants wait for deeper discounts to snap up stock. “Queued-up corporate announcements, eased temperatures on the political front, and likely visit of delegates from neighbouring countries will continue to produce short term triggers,” he added.
Shares of 299 companies were traded on Thursday. At the end of the day 114 stocks closed higher, 131 declined while 54 remained unchanged. Hub Power Company was the volume leader with 11.55 million shares losing Rs0.06 to finish at Rs43.10. It was followed by Jahangir Siddiqui & Company with 11.47 million shares gaining Rs0.63 to close at Rs16.22 and DG Khan Cement with 5.92 million shares gaining Rs0.16 to close at Rs45.47.
Among other frontline stocks: “Lucky Cement ended the day down 1.1%, after news of litigation between cement manufacturers and the Pakistan Standard & Quality Control Authority over marking fees kept the script under pressure,” informed JS Global analyst Shakir Padela.
Foreign institutional investors were buyers of Rs150.64 million and sellers of Rs117.39 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Padela was of the opinion that the market will remain range-bound till there are some positive developments on the political front; and till the US releases CSF dues, which will provide the required boost to the market.
Published in The Express Tribune, July 27th, 2012.