Market watch: KSE remained volatile as investors cautious ahead of monetary policy

Benchmark KSE-100 index falls 54 points.

KARACHI: The stock market remained volatile as investors remained uncertain about the monetary policy. Cements gained interest near the end of the day but remained in the red.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.23% or 54.17 points to end at 23,168.04 point level.

“Pakistan equities closed in the red on the last day of the week with thin volumes as investors remained cautious ahead of the monetary policy statement to be announced after market close.” Said Faisal Bilwani of Elixir Securities.

“Cements, barring Lucky Cement (LUCK PA -1.6%) gained on hopes of a rumoured meeting of manufacturers over the weekend which will bring clarity on marketing arrangement. We reiterate our view that foreign flows will guide direction going forward in absence of any major triggers,” added Bilwani.



Investors were proven wrong as the State Bank announced an increase in policy rates later in the evening in the new monetary policy.

“KSE-100 continued to see profit taking as it closed in the red today (down, 0.2%) on mixed sentiments as the first monetary policy for Fiscal Year 2014 was scheduled to be announced today (50bps hike announced),” said Adeel Jafri of JS Global.

“Pakistan International Airlines closed on the upper circuit (+13.1%) on the back of privatisation news with the government intending to put up 26% of shares on sale. The Cement sector witnessed interest towards the latter half of the day as MLCF closed on the upper circuit.” Jafri added.



Trade volumes fell to 191 million shares compared with Thursday’s tally of 255 million shares.

Shares of 342 companies were traded on Friday with 142 stocks closing higher, 154 declining while 46 remained unchanged. The value of shares traded during the day was Rs6.1 billion.

Jahangir Siddiqui and Company was the volume leader with 19.7 million shares losing Rs0.23 to finish at Rs10.62. It was followed by the Bank of Punjab with 17.1 million shares gaining Rs0.06 to close at Rs12.69 and Pak Elektron Ltd with 16.4 million shares declining Rs0.05 to close at Rs7.83.

Foreign institutional investors were net buyers of Rs234 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 14^th,  2013.

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