Stocks range bound in another lacklustre session
The Karachi Stock Exchange (KSE) benchmark 100-share index moved within a narrow range of 56 points before closing 0.04 per cent or 4.50 points higher at 10,029.36.
The textile sector on the back of news regarding a one-year tax holiday for exports to the European Union kept some investor interest alive, said Topline Securities equity dealer Samar Iqbal.
Volumes of 59.68 million shares were recorded during the day compared with the preceding day’s 63.41 million shares. Trade was dominated by second tier stocks.
Investors opted to sell at higher levels as it is widely expected that treasury bills cut-off yields will rise in Wednesday’s auction, said JS Global Capital analyst Muzzamil Mussani.
Yields on six-month market treasury bills rose to 13.14 per cent in an auction held by the State Bank of Pakistan (SBP) later in the day.
News that Engro Corporation is issuing term finance certificates (TFC) totalling Rs4 billion did not create any negative sentiment in the market, as the scrip fell Rs0.39 to close at Rs173.94, added Mussani.
Nishat Chunian Limited, the third most traded share, closed near its upper circuit breaker on expectations of a decent result scheduled to be announced on Friday. Shares of 399 companies were traded during the day. At the end of the day, 163 stocks closed higher, 193 declined and 43 remained unchanged. The value of shares traded during the day was Rs1.6 billion.
Amtex Limited was the volume leader with 5.25 million shares losing Rs0.21 to finish at Rs15.67. It was followed by Jahangir Siddiqui and Company with 5 million shares falling Rs0.09 to close at Rs9.13 and Nishat Chunian Limited with 3.52 million shares rising Rs0.96 to close at Rs17.85.
Published in The Express Tribune, October 7th, 2010.
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