KARACHI: The stock market relapsed into consolidation mode on Tuesday, as concerns over limited foreign interest and uncertainty in global markets dented investor optimism ahead of major results announcements, said dealers.
According to Arif Habib Corp analyst Ahsan Mehanti, concerns for an economic slowdown; gas shortfall for the textile, fertiliser and power sector; stagnant domestic demand for cement; and falling foreign exchange reserves of the country catalysed bearish sentiments among investors.
“The market witnessed another profit-taking session and closed in the red with low volumes,” commented JS Global analyst Mujtaba Barakzai. “The new free-float based index has created uncertainty for investors to hold on to fresh positions on levels above the 15,500 points mark.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.46% or 72.60 points to end at the 15,674.30 points level. Trade volumes were marginally higher at 83 million shares compared with Monday’s tally of 82 million shares. The value of shares traded during the day was Rs3.03 billion.
“In the absence of any positive news, activity remained dull at the local bourse,” said Topline Securities equity dealer Samar Iqbal. “Investors were also concerned on charges levied by the National Clearing Company of Pakistan on calculation of the capital gains tax. Pakistan Telecommunication Company (PTCL), with volumes of more than 10 million shares, fell by 55 paisa after concerns by a few parliamentarians regarding the recent increase in tariff.”
Shares of 356 companies were traded on Tuesday. At the end of the day, 116 stocks closed higher, 183 declined while 57 remained unchanged. PTCL was the volume leader with 10.25 million shares losing Rs0.51 to finish at Rs19.24. It was followed by Engro Corporation with 4.51 million shares losing Rs4.18 to close at Rs95.39 and Nishat Mills with 4.10 million shares losing Rs0.71 to close at Rs58.02.
“Selling from various institutes was witnessed in Engro, which came down 4.2%,” reported Barakzai. “Foreign institutional investors were rumored sellers in some specific stocks, but all major sectors were down: cement was down 2.0%, fertiliser 0.5% and oil and gas 0.1%.”
Foreign institutional investors were buyers of Rs365.65 million and sellers of Rs234.19 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 17th, 2012.
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