Investors remained cautious as lacklustre activity was witnessed at the bourse where the index remained range bound during both trading sessions.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.02% or 6.50 points to end at 28,871.75.
Elixir Securities Analyst Faisal Bilwani said Pakistan equities witnessed an uneventful day with weak volumes in the broader market as turnover tumbled to levels last seen five weeks back during Ramazan.
“The index traded less than $28 million, 53% below this week’s average,” said Bilwani. “Investors preferred to remain on the sidelines and wait for clarity on the political front as sit-in continue.
“As expected, PTI again hinted at resumption of talks with the government which is a very positive sign. However, deadlock on demands, particularly resignation by Prime Minister Nawaz Sharif, continues.
“Volumes yet again were led by small caps on retail activity with very few index names generating interest on institutional flows. Rumours of a possible positive news flow in coming days on gas prices for fertilisers will likely bring sector in limelight, but for now, fundamentals and earnings remain overshadowed by local politics.
“Events over the weekend will guide market direction with investors desperate for an end to the ongoing crisis regardless of the outcome as long as it is without any unrest, within the ambit of the constitution and acceptable to all stakeholders,” he said.
Trade volumes declined to 68 million shares compared with Thursday’s tally of 151 million.
Shares of 294 companies were traded on Friday. Share prices of 124 companies declined, 147 closed higher while 23 remained unchanged. The value of shares traded during the day was Rs3.75 billion.
Pakistan Elektron Limited was the volume leader with 11.7 million shares, gaining Rs0.74 to close at Rs29.87. It was followed by the Bank of Punjab with 5.3 million shares, remaining the same to close at Rs8.04 and Maple Leaf Cement with 3.5 million shares, gaining Rs0.01 to close at Rs27.37.
Foreign institutional investors were net sellers of Rs43.9 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, August 23rd, 2014.
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