KSE-100 rises by 14 points amid low volumes

Investors remained largely at bay in local equity markets as the KSE registered a nominal increase of 14 points.

Express August 28, 2010

KARACHI: Investors remained largely at bay in local equity markets as the Karachi Stock Exchange registered a nominal increase of 14 points to end at the 9,598 level on Friday. Experts contend that losses suffered by index heavyweights due to recent floods, coupled with the expected impact on country’s macroeconomic indicators have caused nervousness among local investors.

Trading activity remained low and only 35.39 million shares were traded during the day. The broader market also appeared directionless as out of 310 actively traded stocks, 152 advanced, 142 declined and 16 remained unchanged. KSE All share index also increased by 11 points and ended at 6,709.

Lotte Pakistan contributed heavily to the total volume as 4.34 million of its shares were traded on the last day of trade for the week. Support was lent to the index by the trading activity in MCB and OGDC as both equities registered increases during the trade session. “Off shore participants were accumulating MCB and OGDC” highlighted Aziz Fida Husain analyst Hasnain Asghar Ali.

However analysts say that participants may be uneasy in coming sessions based on deteriorating macroeconomic conditions.

“Soaring inflation and depleting foreign exchange reserves may open the doors to bears in coming sessions” said Ali adding that “participation is likely to reduce further at the local bourse if the only positive trigger, the re-launching of ready board leverage, is not executed soon”.

However analysts pointed out that foreign interest in blue chip stocks has continued to support the index.

“Pledges of one billion dollars in aid commitments to Pakistan for flood relief have been taken positively by investors, despite concerns for political uncertainty, rising government borrowings and economic challenges to the country” commented director Arif Habib Investments Ehsan Mehanti.

Published in The Express Tribune, August 28th, 2010.


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