Market Watch: Another dull day due to adverse security situation

Benchmark KSE-100 index rises 18 points.


Our Correspondent November 22, 2012

KARACHI:


Activity was subdued as investors remained cautious because of the deteriorating law and order situation. However, the market still managed to close in black as positive corporate news feeds kept the buying momentum to carry on.


The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.11% or 17.81 points to end at 16,251 point level.

“The local bourse closed higher led by second-tier stocks in cement, textile and oil sectors on strong valuations and news flows amid concerns for rising circular debt in energy sector,” said Ahsan Mehanti, analyst at Arif Habib Corporation.

The textile sector was positive over the news of healthy export figures released by the government. Textile exports were $4.39 billion in the four months of fiscal 2013, growing 4.78% compared to $4.19 billion in the corresponding period last year, data from Pakistan Bureau of Statistics shows. Following the news, Nishat Chunian hit its upper circuit, up 5% to close at Rs31.63.

Indus Motor Company and Pak Suzuki Motor Company hit their upper circuit after the Economic Coordination Committee announced a reduction in age limit of imported cars; cars which are more than three years old are restricted for imports meaning local assemblers will not lose major ground to imported models.

“However, leading banks, oils and cements all traded in a lacklustre fashion as concerns on declining foreign exchange reserves amid International Monetary Fund (IMF) payments and import bill kept institutional flow limited,” said Sibtain Mustafa, analyst at Elixir Securities.

Trade volumes climbed to 231 million shares compared with Wednesday’s tally of 205 million shares.

The value of shares traded during the day was Rs4.16 billion. Fauji Cement was the volume leader with 35.08 million shares gaining Rs0.27 to finish at Rs6.97. It was followed by Maple Leaf Cement with 16.17 million shares rising Rs0.99 to close at Rs15.24 and Jahangir Siddiqui and Company with 13.73 million shares losing Rs0.46to close at Rs15.64.

Foreign institutional investors were net buyers of Rs127.27 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 23rd, 2012.

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