KARACHI: Macroeconomic concerns and lacklustre corporate result announcements allowed the stock market to consolidate further on Wednesday.
“Fall in foreign direct investment (FDI) during the first quarter of fiscal 2013, concerns for the gas shortfall in the industrial sector, rising political uncertainty and security unrest in city affected sentiments,” noted Ahsan Mehanti, from Arif Habib Corp.
The State Bank of Pakistan had revealed on Tuesday that FDI in the country fell by 67% during the first quarter of the current fiscal year, compared to the same period of the preceding year, mainly due to a lack of foreign investors’ interest, owing to the adverse law and order situation and deepening energy crisis in the country.
“Bearish activity continued amid consolidation in stocks across the board, despite a recovery in global stocks and commodities. Institutional support was witnessed in selected blue chip stocks on speculations ahead of earning announcements,” he added.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.13% or 19.68 points to end at the 15,654.62 points level. Trade volumes improved to 91 million shares compared with Tuesday’s tally of 83 million shares. The value of shares traded during the day was Rs2.70 billion.
“The results of Pakistan Telecommunication Company (PTCL) and Fatima Fertilizers created momentum [in the market] after the depressed volumes witnessed by investors throughout the week. PTCL, after posting a loss of Rs1.83 per share for the first quarter of fiscal 2013, hit its lower circuit lock, but later recovered with institutional investors valuating the booking of the Voluntary Separation Scheme, which got the stock moving up with impressive volumes,” reported JS Global analyst Fahad Ali.
Shares of 347 companies were traded on Wednesday. At the end of the day, 123 stocks closed higher, 161 declined while 63 remained unchanged.
PTCL was the volume leader with 23.37 million shares losing Rs0.58 to finish at Rs18.66. It was followed by the JS Growth Fund with 5.07 million shares losing Rs0.05 to close at Rs7.50 and Sui Southern Gas Company with 3.93 million shares gaining Rs0.01 to close at Rs22.02.
Foreign institutional investors were buyers of Rs223.18 million and sellers of Rs198.22 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, October 18th, 2012.
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