RECORDER REPORT
KARACHI: Stocks closed lower following panic selling on the fourth consecutive day Thursday and the benchmark KSE-100 index lost another 37 points to close at 27,774 points down from 27,811 points Wednesday.
Analysts said the market remained volatile and stayed in the red zone. Volumes stood lower as foreign and local investors remained uncertain about the ongoing political situation in the country.
During the intra-day trading, the market fell by over 450 points, however some recovery was witnessed in the evening and at the end of the session, the index closed with a decline of 0.13 percent. The index touched 27,866 points highest and 27,354 points lowest level. Following a negative trend, volume at the ready counter decline to 115 million shares compared to 132 million shares in previous session.
Ahsan Mehanti, an analyst at Arif Habib, said stocks closed bearish amid concerns for the outcome of government refusal to meet the demand of PAT and PTI protesters across the country.
“Rupee instability and political deadlock impacted the sentiment, however later session support by state-owned institutions, speculations for PC decision on OGDC GDRs at London Stock Exchange for $850 million sale in the midst of political crises supported to index to close flat,” he added.
Fall in banking spreads and huge losses viz political crises played a catalytic role in the bearish activity at KSE despite the Supreme Court ruling on refund of GIDC for industrial sector, he added.
Despite a bearish activity, market capitalisation increased by Rs 17 billion to Rs 6.553 trillion against previous Rs 6.536 trillion a day earlier. Trading took place in 319 companies, of which 132 closed in green zone, 162 in red, while 25 remained unchanged.
“After falling by 3.8 percent in last three days, the market showed intraday recovery as the government agreed to register FIR against PM, CM Punjab and other 21 persons in Model Town incident,” said Samar Iqbal, analyst at Topline Securities.
The local bourse closed 0.13 percent down after declining by 457 points intraday, while volumes slightly declined to 115 million shares and the value remained at $64 million (value Rs 6.37 billion), she added.
She said selective buying was seen as valuations become so attractive as the market fell by 8.8 percent from its peak. Renewed interest was seen in OGDC, POL and DGKC.
Among top 10 volume leaders, four recorded positive trend. Maple Leaf Cement emerged the volume leader with 9.7 million shares, losing Re 0.07 to close at Rs 25.47. B.O.Punjab stood second at Rs 7.91 on 7.8 million shares. Pak Elektron Ltd. ranked third, closing at Rs 28.76, up Re 0.40, on 7.5 million shares.
K-Electric Ltd lost Re 0.03 to Rs 6.71 on 5.8 million shares. With a trading volume of 4.4 million shares, TRG Pak Ltd gained Re 0.16 to close at Rs 10.22. Lafarge Pak increased by Re 0.08 to close at Rs 15.10 on 3.9 million shares and Nishat Mills Ltd lost Re 0.81 to Rs 98.57 on some 3.7 million shares.
Some 3.5 million shares of Fauji Cement were traded and the scrip closed at Rs 18.23, down Rs 0.05. Adamjee Ins surged by Re 0.34 to Rs 47.18 on 3.3 million shares. Byco Petroleum fell by Re 0.12 to Rs 9.39 on 2.7 million shares.
Nestle Pak and Wyeth Pak Ltd were the top gainers with Rs 230.80 and Rs 160.00 to close at Rs 7,730.80 and Rs 3,360.11, respectively. Rafhan Maize SPOT and Sanofi-Aventis were the top losers with Rs 199.00 and Rs 36.50 to close at Rs 10,501.00 and Rs 693.50, respectively.
