Market watch: Profit-taking pulls bourse down from historic high
After a cut in the rates of National Saving Schemes (NSS), the bourse touched an unprecedented high of 15,981 intraday. However, profit-taking in blue chip stocks pulled the bourse to close in the red.
The Karachi Stock Exchange’s (KSE) benchmark 100-share dipped 0.95% or 151.09 points to end at the 15,694.21 point level.
The government slashed profit rates on NSS with effect from Friday, according to an announcement made by the Central Directorate of National Savings (CDNS).
It said that in response to the considerable cut in interest rates by the State Bank of Pakistan, the government decided to revise the profit rates downward for the investment made on or after October 12, 2012.
Gas shortfall for textiles, fertilisers and power sector and falling foreign exchange reserves played the role of catalyst in bearish sentiments despite the reduction of 9.97% in the trade deficit amid rising exports, according to Ahsan Mehanti, analyst at Arif Habib Corporation.
“The fall was mainly contributed by Oil and Gas Development Company, Nestle and Unilever,” said Samar Iqbal, equity dealer at Topline Securities.
Besides, investor interest was seen in Pakistan Telecommunication Company and cement sector amid healthy quarter earnings expectations, Iqbal added.
Positive sentiments in the cement sector were also boosted by the news that cement dispatches for September 2012 were recorded at 2.61 million tons, up 14.2% year-on-year, according to All Pakistan Cement Manufacturers Association.
Fertiliser sector was battered as earlier the Sui Northern Gas Pipelines (SNGPL) said that it will be unable to provide further gas to fertiliser producers on its network due to low gas pressure. The SNGPL network includes Pakarab Fertilizer, Engro Enven, Agritech Limited and DHFL fertiliser plants.
Trade volumes climbed to 113 million shares compared with Thursday’s tally of 107 million shares. The value of shares traded during the day was Rs4.6 billion.
Pakistan Telecommunication Company was the volume leader with 15.6 million shares shedding Rs0.21 to finish at Rs19.77. It was followed by TeleCard with 5.2 million shares losing Rs0.09 to close at Rs3.07 and Bank Alfalah with 4.3 million shares falling Rs0.41 to close at Rs15.
Foreign institutional investors were net buyers of Rs97.1 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 13th, 2012.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ