Market watch: Bourse falls behind dividend-less telecom results

Benchmark KSE-100 index falls 26 points.

KARACHI: Bourse ended lower as investor sentiments were adverse due to telecom giant’s results unaccompanied by payouts.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.17% or 26.17 points to end at 15,124.02 point level.

Trade volumes declined to a paltry level of 154 million shares compared with Monday’s tally of 208 million shares. The volumes have been witnessing a consistent decline since past week as traders choose to remain sidelined.

“Investor sentiments were dented as PTCL announced its results for financial year 2012 unaccompanied by payouts or dividends,” said Topline Securities Equity Dealer Samar Iqbal.

However, bulls tried to capture the flag as buying interest was witnessed in Pakistan State Oil (PSO) amid hope of circular debt resolution, Iqbal added. Earlier, the government cleared Rs80 billion worth of term finance certificates (TFCs) on behalf of the Oil and Gas Development Company (OGDCL) to curtail the spiralling circular debt issue faced by the index-heavyweight energy sector. PSO closed up Rs4.65 at Rs261.24.

As of June 30, 2012, OGDCL receivables stood at Rs138bn. Out of the same Rs82bn (59%) is likely to be converted into investments after the subscription of TFCs.  Power Holding will net off Rs70bn owed to PSO. Hence, PSO receivables will decline to Rs168bn from Rs238bn, according to JS Global Capital.

Shares of 354 companies were traded on the second trading session of the week. At the end of the day 142 stocks closed higher, 160 declined while 52 remained unchanged. The value of shares traded during the day was Rs4 billion.

Pakistan Telecommunication Company was the volume leader with 21 million shares losing Rs0.8 to finish at Rs18.81, after peaking to Rs20.57 last Friday. It was followed by Karachi Electric Supply Company with 16.5 million shares gaining Rs0.05 to close at Rs7.5 and Jahangir Siddiqui Bank with 10 million shares losing Rs0.21 to close at Rs5.99.

Foreign investor sentiments were also mixed as they were gross buyers of Rs95 million and gross sellers of 94.8 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 12^th, 2012.