KARACHI: Karachi’s equity market closed in the red as June-end liquidity issues continue to affect the bourse in spite of the fact that the regional markets recovered. Index heavy MCB Bank led the selling, pulling the market down to close barely above the 21,000-point level.
“The security situation of the city and the news on President Asif Ali Zardari’s Swiss cases partially contributed to the correction. Volatility was very high due to rollover week of future contracts and closing of financial year,” said JS Global Capital analyst Veer Bajaj.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.51% or 107.77 points to end at 21,002.57 point level. Trade volumes fell to a paltry level of 203 million shares, compared with Tuesday’s tally of 212 million shares.
Shares of 350 companies were traded on Wednesday. At the end of the day 150 stocks closed higher, 146 declined while 54 remained unchanged. The value of shares traded during the day was Rs7.45 billion.
“June-end liquidity issues continue to affect the bourse in spite of the fact that Asian markets are recovering. Volume remained low as most of the investors chose to stay on the sidelines due to June closing,” said Samar Iqbal, head of equity sales of Topline Securities.
“The Karachi stock market started the day on a mixed note, after which selling in index heavy MCB Bank spoiled the mood by midday,” reported Jawwad Aboobakar, analyst at Elixir Securities. MCB Bank’s stock has shed over 22% of its value in the last nine trading days, however, value seekers are still reluctant to take advantage of the recent weakness on reported foreigners and local institutional selling, said Aboobakar.
Pakistan State Oil was under pressure from the word go as investors opted to bank profits, while the broader market spent the majority of the trading session absorbing the brunt of selling from investors.
However, retail investors remained active in second-tier stocks, churning in enough volumes for them to top the volume leader board. Throughout the day, cement giant Lucky Cement traded strong and ignored the rest of the market to close in the black on reported foreign buying.
Pakistan Telecommunication Company was the volume leader with 19.97 million shares gaining Rs0.37 to finish at Rs21.37. It was followed by Jahangir Siddiqui and Company with 16.94 million shares gaining Rs0.09 to close at Rs11.68 and Bank Alfalah with 11.89 million shares climbing Rs0.3 to close at Rs18.86.
Foreign institutional investors were buyers of Rs516 million and sellers of Rs312 million, according to data maintained by the National Clearing Company of Pakistan.
Published in The Express Tribune, June 27th, 2013.
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