Market watch: Bourse undergoes moderate correction

Benchmark KSE-100 index slips 96 points.

KARACHI: Wednesday saw yet another profit-taking session at the Karachi bourse. The bout of selling put a damper on investor spirits, who stuck largely to the sidelines in a session marked by lower volumes.

“With the results season near its climax, and a fall in international equity markets, investors opted to book profits,” said Topline Securities equity dealer Samar Iqbal.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.62% or 94.74 points to end at the 15,293.39 points level.

“Investors booked profits post major earnings announcements at the KSE,” said Ahsan Mehanti, from Arif Habib Corp. “Consolidation in blue-chip stocks continued. Concerns for outstanding circular debt in the energy sector and security unrest in the city played a catalyst role in bearish activity.”

Trade volumes dropped to 172 million shares compared with Tuesday’s tally of 180 million shares. The value of shares traded during the day was Rs5.13 billion.

“Although frontline stocks from almost all major sectors continued to invite cautious accumulation on dips, stock-swapping and profit-taking in exploration and production stocks kept the benchmark struggling ... mainly due to low volumes,” said ESCAP COO Hasnain Asghar Ali.

Shares of 359 companies were traded on Wednesday. At the end of the day 131 stocks closed higher, 164 declined while 64 remained unchanged.

“Major cement stocks witnessed a selloff over weak sales numbers for August,” said JS Global analyst Mujtaba Barakazai. “DG Khan Cement was down 3.5%, while Lucky Cement declined by 0.1%. Oil stocks also remained out of favour, as Pakistan Oilfields was down 0.9% and Pakistan Petroleum [closed down] 0.2%.”

WorldCall telecom was the volume leader with 14.72 million shares losing Rs0.07 to finish at Rs2.78. It was followed by DG Khan Cement with 10.37 million shares losing Rs1.78 to close at Rs49.73 and Jahangir Siddiqui & Company with 9.41 million shares gaining Rs0.08 to close at Rs14.16.

Foreign institutional investors were buyers of Rs351.61 million and sellers of Rs192.93 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 6^th, 2012.