RECORDER REPORT

KARACHI: Sentiment at the Karachi share market remained negative for third consecutive day and the benchmark KSE-100 index shed another 78 points to close at 30,016 points Friday compared to 30,094 points Thursday.

Analysts said the market remained volatile on the last trading day of the week and declined by 0.3 percent. “As the political show heads towards Karachi this weekend investors opted to square their positions to play it safe. Furthermore, with monetary policy due today (Saturday), a rangebound activity was almost expected,” they added.

Ahsan Mehanti, analyst at Arif Habib Securities, said stocks closed lower amid cautious activity ahead of SBP policy rate decision on September 20, 2014.

He said dismal current account deficit data that crossed over $1.373 billion for July-Aug 2014 against $580 million in same period of last fiscal year, pending over Rs230 billion circular debt in energy sector and impact of flood losses in Punjab played a catalyst role in the bearish activity at KSE.

During the intraday trading, KSE-100 index also touched 30,182 points highest and 29,977 lowest level. Investors’ thin participation also resulted in lower turnover and trading volume at the ready counter decreased by 19 percent to 150 million shares against 186.6 million shares a day earlier.

Market capitalisation posted a slight decline of Rs 12 billion to reach below Rs 7 trillion mark. At the end of the session, capitalisation stood at Rs 6.998 trillion down from Rs 7.009 trillion. Trading took place in 412 companies, of which 238 closed in green zone, 157 in the red while 17 companies remained unchanged.

“Weekend profit taking was seen however the market maintained its 30,000 points level,” said Samar Iqbal, Assistant Vice President (AVP), Equity Sales Topline Securities.

Investors also remained on the sidelines ahead of the Monetary Policy, however majority expects no change in the policy rate, she added.

Value declined to $52 million or Rs 5.22 billion. LPCL remained active amid continued investor interest, she added.

Among top 10 volume leaders, three companies closed negative. Lafarge Pak emerged the volume leader with 18.65 million shares, losing Re 0.03 to close at Rs 17.04. Summit Bank stood second, up Re 0.42 to close at Rs 3.60 on 10.17 million shares. Dewan Motors ranked third with 10.17 million shares, gaining Re 1 to Rs 7.03. Some 6.3 million shares of Pak Elektron Ltd were traded and the scrip moved up by Re 0.32 to Rs 29.66.

Amtex Limited gained Re 0.23 to Rs 3.38 on 4.4 million shares. With some 3.7 million shares volume, National Bank closed at Rs 60.39, down Re 0.70. Maple Leaf Cement increased by Re 0.18 to Rs 28.16 on 3.4 million shares. Dewan Cement moved up by Re 0.28 to Rs 7.06 on 3.4 million shares.

With a trading volume of 3 million shares, K-Electric declined by Re 0.07 to close at Rs 8.16 while Golden Arrow closed at Rs 10.16, up Re 0.16 on 2.9 million shares.

Unilever Foods and Sanofi-Aventis were the top gainers with Rs 417.15 and Rs 37.52 to close at Rs 8,767.15 and Rs 787.94, respectively. Rafhan Maize and Nestle Pak were the top losers with Rs 210.41 and Rs 30.01 to close at Rs 11,024.59 and Rs 7,849.99, respectively.

Analysts said a bullish momentum was again witnessed in the pharma sector as FEROZ and HINOON hit their upper circuits. Investors will keenly look at foreign portfolio flows as any large inflow will induce more buying from local participants, they added. “We expect the market to gain momentum in coming week if the discount rate remains unchanged and certainty in the political situation after the Sunday event,” they said.