Despite the chaotic situation in Islamabad and uncertainty on the political front, investors seemed daring and showed interest. The index lost only 74 points to close marginally in the red.
At the end, the Karachi Stock Exchange’s (KSE) benchmark 100-share index decreased 0.26% or 74 points to end at 28,493.74.
Elixir Securities analyst Faisal Bilwani said Pakistan equities closed negative after an eventful day. “Investors dared to take advantage and somewhat brushed aside the ongoing tension in Islamabad,” said Bilwani. “Stocks opened gap down after weekend clashes that left hundreds injured. However, stocks found support near 28,200 on institutional buying in index names.
“Lower than expected inflation reading for August at 6.99% year-on-year did help channel fresh flows. However, fear of confrontation on political front ensured upside remains in check.
“K-Electric (KEL) +7.1% led volumes and gained after recent surprise payout while buying in Lucky Cement (LUCK) +1% ahead of the annual earnings announcement helped recover some of the recent losses.”
Arif Habib Corporation analyst Ahsan Mehanti said the fall in banking spreads and huge losses on the political crises played a catalyst role in bearish activity. “The day ended negative despite the Supreme Court’s ruling on refund of GIDC for industrial sector.”
Trade volumes fell to 122 million shares compared to Friday’s tally of 187 million.
Shares of 292 companies were traded on Monday. Of these, 168 companies declined, 105 closed higher while 19 remained unchanged. The value of shares traded during the day stood at Rs6.1 billion.
K-Electric was the volume leader with 19.5 million shares, gaining Rs0.55 to close at Rs8.26. It was followed by Maple Leaf Cement with 8.6 million shares, gaining Rs0.02 to close at Rs26.63 and Jahangir Siddiqui Co with 7.6 million shares, gaining Rs0.57 to close at Rs8.84.
Foreign institutional investors were net sellers of Rs56 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 2nd, 2014.
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