Market watch: Index sees lethargic day

Benchmark KSE-100 index falls 53.17 points.

KARACHI:

The index experienced a slump as traders remained uncertain about market stability.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.19% or 53.17 points to end at 28,330.03.

Elixir Securities analyst Faisal Bilwani said that the stock market traded lacklustre on lack of interest pulling benchmark. “Due to this, the index closed marginally negative in the absence of active buying,” said Bilwani. “Institutions, particularly locals, were in no rush to take advantage of the weakness and continued to remain sidelined waiting for the outcome of ongoing talks with International Monetary Fund and next week’s monetary policy.”



According to Bilwani, investors anxiously await clarity on foreign investment direction while recent increase in political noise ahead of planned demonstration over the weekend is adding to the confusion.

“Pakistan State Oil (PSO) -1.3% that is down over 6% this month is to recover on hopes that government would come to the rescue with possible funds release,” said Bilwani.

Bilwani concluded that broader market was expected to recover ahead of the weekend with energy (PSO, POL, OGDC) and financials (MCB, BAHL, BAFL) leading the bounce back.

Trade volumes for Wednesday were recorded at 134 million shares.

Shares of 330 companies were traded on Wednesday. At the end of the day, 128 stocks closed higher, 172 declined while 30 remained unchanged. The value of shares traded during the day was Rs6.12 billion.



Lafarge Pak Ltd was the volume leader with 15.4 million shares, gaining Rs0.29 to finish at Rs 13.98. It was followed by Faysal Bank with 13.3 million shares, gaining Rs0.68 to close at Rs 16.58 and Jahangir Siddiqui and Company with 8.3 million shares, gaining  Rs0.31 to close at Rs11.66

Foreign institutional investors were net buyers of Rs446 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 8^th, 2014.

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