KSE range bound as volumes tumble

Market closed flat after trading on Monday as investors remained concerned over the dispute on KSE board.

KARACHI: The market closed flat after trading on the first day of the week as investors remained concerned over the ongoing dispute on the Karachi Stock Exchange (KSE) board and the possible imposition of a flood surcharge on incomes and imports.

Sluggish activity at the local bourse continued with investors remaining sidelined amid the continuing tussle between KSE members and the SECP on the standing position of KSE’s chairman, according to Ahmed Rauf from JS Global Capital.

KSE chairman Zubyr Soomro had raised objections on the proposed margin trading product asking for more transparency in the system.

“Locals ignored gains in the global stock markets and resisted good value amid lack of interest,” added Nazim Muttalib from Elixir Securities.

Analysts were also of the view that a shorter trading week before the Eid holidays also contributed to the low volumes witnessed on Monday. The stock market will be closed on Friday.

The benchmark 100-share index gained just 3.04 points, or 0.03 per cent, to close at 9,706.10.

Disappointing volumes

Only 19.63 million shares were traded during the day, hitting a two-month low, according to Samar Iqbal, a local equity dealer.

Shares of 333 companies were traded on Monday. At the end of the day, 128 stocks closed higher while 178 declined and 27 remained unchanged. The value of the shares traded during the day was approximately Rs0.83 billion.

Lotte Pakistan PTA accounted for almost 10 per cent of the total shares traded with a turnover of 1.82 million shares. The scrip lost Rs0.15 to close at Rs7.94 per share.

Lucky Cement followed with a trade volume of 1.25 million shares. Referring to the cement sector, Muttalib added: “Cements generated the most interest as investors bet on possible higher local offtake post flood damage.”

The company’s stock closed at Rs68.56, up Rs0.35 per share.

JS and Company emerged as the third market leader with 1.2 million shares traded.

Published in The Express Tribune, September 7^th, 2010.