Trade volumes fell to paltry level of 180 million shares compared with Tuesday’s tally of 211 million shares.
The market has been volatile since the end of the earning season as political uncertainty and adverse macroeconomic scenarios continue to guide direction.
Iran and Pakistan held a ceremony Monday to mark the start of work on the gas pipeline, a deal that the US had repeatedly warned may fall foul of a sanctions regime designed to prevent Iran from developing a nuclear bomb. The market managed to recoup gains on Tuesday, but lost the bullish momentum yesterday.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.63% or 112.41 points to end at 17,760.44 point level. Trade volumes fell to paltry level of 180 million shares compared with Tuesday’s tally of 211 million shares.
“Selling was witnessed across the board as institutions and day traders decided to stay sidelined until the caretaker government is announced,” reported Fahad Ali, analyst at JS Global Capital. However, accumulation was seen in stocks with good valuations on lower levels, Ali added.
The value of shares traded during the day was Rs8.15 billion.
Uncertainty regarding the prices at which gas will be supplied to the fertiliser plants on the Sui Northern Gas Pipelines (SNGPL) network pulled the sector down. Investors offloaded their positions in Engro Corporation as the stock hovered near its lower lock for most of the trading session. The SNGPL network includes Pakarab Fertilizer, Engro Enven, Agritech Limited and Dawood Hercules fertiliser plants.
Moreover, the telecom sector that remained controversial over incoming call termination charges lost ground as all of the four stocks – Pakistan Telecommunication Company, Telecard, Wateen Telecom and Worldcall Telecom – closing the day in the red.
On the contrary, institutional activity kept interest alive in dividend yield plays namely Hub Power Company, Fauji Fertilizer Company and Fauji Fertilizer Biz Qasim.
Engro Corporation was the volume leader with 25.13 million shares falling Rs3.9 to finish at Rs124.75. It was followed by Pakistan Telecommunication Company with 24.27 million shares losing Rs0.63 to close at Rs20.45 and Lafarge Pakistan with 12.12 million shares gaining Rs0.06 to close at Rs6.2.
Foreign institutional investors were buyers of Rs761.75 million and sellers of Rs375.4 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 14th, 2013.
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