The market closed flat on Monday since investor sentiments were mixed towards the bourse as the battle between the bulls and the bears rage on.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.1% or 13.77 points to end at the 15,240.19 point level.
After hitting an intra-day high of 15,323 points the market witnessed profit taking in the second half of the day.
“Market remained ranged bound on the first trading session of the week as investors remained cautious with increase of political noise,” said Samar Iqbal, equity dealer at Topline Securities.
Better than expected June result of DG Khan Cement Company also failed to boost investor confidence and major activity remained skewed towards bottom-tier scrips, added Iqbal. Trade volumes fell to 208 million shares compared with Friday’s tally of 227 million shares.
Shares of 355 companies were traded on Monday. At the end of the day 119 stocks closed higher, 167 declined while 69 remained unchanged. The value of shares traded during the day was Rs4.9 billion.
Karachi Electric Supply Company was the volume leader with 23.7 million shares gaining Re1 – hitting its upper limit – to finish at Rs7.45. It was followed by Pakistan Telecommunication Company with 19.1 million shares losing Rs0.96 to close at Rs19.61 and Jahangir Siddiqui Bank with 15.5 million shares gaining Rs0.44 to close at Rs6.2.
Banking stocks came under selling pressure as traders expect further cuts in interest rates in the next monetary policy statement to be unveiled by the State Bank of Pakistan, said JS Global Capital Analyst Shakir Padela.
Engro Corporation shed 1.65% off its value over the uncertainty that the fertiliser giant will be given gas from other sources other than the Sui gas network. The new plant of Engro Fertilizers operated for only 33 days due to gas shortage on the Sui network in the first six months of 2012.
Foreign institutional investors were net buyers of Rs64 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 11th, 2012.
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