Market watch: Investors shy away amid SC proceedings

KSE’s 100-share index declines 52 points in thin trade.

Our Correspondent August 03, 2012

KARACHI: Uncertainty regarding the outcome of the contempt law hearing kept investors away from the market on the last trading session of the week.

The few investors who decided to step in preferred to book profits as regional markets came under pressure once again, said Topline Securities Equity Dealer Samar Iqbal.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.37 per cent or 54.24 points to end at the 14,676.43 points level.

In post-trading hours the Supreme of Court declared the contempt law, recently passed by the parliament, as “null and void”, while hearing petitions against the law on Friday.

Volumes continued its meager trend in the month of Ramadan as only 48 million shares were traded compared with Thursday’s tally of 102 million shares.

Engro was the major loser of the day as news reports suggested that its old urea plant was also shut due to technical difficulties, according to JS Global Capital. The stock fell by Rs3.6 to close at Rs 88.8.

Third-tier sectors were outperformers with electrical and pharmaceutical sectors gaining as well.

Shares of 272 companies were traded on Friday. At the end of the day 96 stocks closed higher, 136 declined while 40 remained unchanged. The value of shares traded during the day was Rs1.8 billion.

DG Khan Cement was the volume leader with 5.3 million shares declining Re0.1 to finish at Rs46.6. It was followed by Maple Leaf Cement with 3.9 million shares falling Rs0.2 to close at Rs6.6 and Bank Alfalah with 3.3 million shares declining Rs0.5 to close at Rs18.0.

Foreign institutional investors were net buyers of Rs50 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 4th, 2012.