Business

Maket watch: Rally falters as SC takes centre stage

Mixed session sees profit-selling as index nears 17,000 points.

Our Correspondent January 23, 2013

Trade volumes were higher at 218 million shares, compared with Tuesday’s tally of 184 million shares.

KARACHI: The Supreme Court’s hearing of the rental power seemed to spoil the party at the Karachi bourse, just as investors seemed keen on putting politics behind them to focus on the upcoming earnings season.

To top it off, news flows regarding dismal government performance at the macroeconomic level disturbed the mood further, pushing punters to bank gains as the index came within reach of the key 17,000 points psychological barrier.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index closed with a moderate gain of 0.09% or 14.58 points, to end at the 16,908.67 points level. Trade volumes were higher at 218 million shares, compared with Tuesday’s tally of 184 million shares. The value of shares traded during the day was Rs5.49 billion.

“The KSE-100 failed to carry its momentum, as 17,000 points continued to play as [the] resistance [level] on renewed fears [over the] economy due to alarming debt levels, depleting forex reserves and continued low productivity in the economy,” commented Sibtain Mustafa, analyst at Elixir Sales.

“Mid-cap cement stocks like Fauji Cement and Maple Leaf Cement remained in the limelight ahead of their December results,” reported equity dealer Samar Iqbal, who is associated with Topline Securities. “Fauji Fertilizer came down after its result announcements, as a few investors were expecting a bonus issue as well.”

“The Oil and Gas Development Compnay (up 0.7%) and Nestle (up 3.8%) tilted the market into positive territory,” reported JS Global analyst Ovais Ahsan. “United Bank (up 1.6%) led the banking sector on expectations of strong full-year results, while Engro (up 2.1%) gained on news of sponsors adding on [to old] positions.”

Fauji Cement was the volume leader, with 35.12 million shares gaining Rs0.09 to finish at Rs7.48. It was followed by Maple Leaf Cement with 28.10 million shares, up Rs0.64 to close at Rs16.86; and Jahangir Siddiqui and Company with 21.16 million shares traded, gaining Rs0.65 to close at Rs16.34.

Foreign institutional investors were net buyers of Rs44.94 million worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 24^th, 2013.

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