RECORDER REPORT

KARACHI: After resisting for few sessions, the benchmark KSE-100 index closed below the 30,000 psychological mark on Monday in the absence of any market related triggers.

The Karachi share market witnessed a dull session on the first trading day of the week and the KSE-100 index lost 22 points to close at 29,994 points compared to 30,016 points in the previous session.

Ahsan Mehanti, an analyst at Arif Habib, said that stocks closed lower as the State Bank maintained status quo in Sept 2014 policy announcement on Saturday.

“Concerns for rising current account deficit data, falling FDIs on political crises and pending over Rs230 billion circular debt in energy sector played a catalyst role in bearish activity at KSE,” he added.

He said that cement, pharma and auto sector stocks remained in lime light on rising local prices and positive outlook on reconstruction and rehabilitation activities following floods in Punjab.

The market during the intraday trading fluctuated in green and red zones as the index also touched 30,108 points highest and 29,980 points lowest level with thin trading activity. Following the negative sentiments, the volume at the ready counter decreased by 23 per cent compared to the previous session and overall some 115 million shares were traded on Monday against 150 million shares on Friday.

With a decline of Rs 9 billion, the market capitalisation stood at Rs 6.989 trillion down from Rs 6.998 trillion. The trading took place in 409 companies, of which 173 closed in green zone, 212 in the red, while 24 companies remained unchanged.

Analysts at JS said that the market continued to tread cautiously as investors refrained from taking any bets in a volatile political situation.

“The State Bank’s decision to keep interest rates unchanged was largely in line with the market expectation and the announcement on Saturday was mostly seen as a non event in the terms of the market impact,” they added.

Volumes remained shallow concentrated in the third tier names as Pak Electron led volumes with 11.74 million shares of the home appliances and electrical goods maker traded. Pak Elektron announced a rights issue today of 35 per cent with an aim of raising Rs 2 billion to increase paid up capital and reducing their long term debt, they informed.

“We expect the market to remain listless until some clarity in the political situation evolves as the current stalemate seems like a prolonged affair,” they said.

Among top 10 volume leaders, five companies recorded a positive trend. Pak Electron Ltd emerged the volume leader with 11.7 million shares, losing Re 0.34 to close at Rs 29.32. Descon Chemical stood the second, up Re 0.29 to close at Rs 3.73 on 4.6 million shares. Lafarge Pak ranked the third with 4.5 million shares, losing Re 0.24 to Rs 16.80. With a trading volume of 4.3 million shares, Ghani Automobile gained Re 0.79 to Rs 5.09.

Dewan Motors down by Re 0.31 to Rs 6.72 on 4 million shares. Some 2.9 million shares of Summit Bank were traded and the scrip closed at Rs 3.46, declined by Rs 0.14. Pak Int. Bulk increased by Rs 0.72 to Rs 21.32 on 2.8 million shares. Bank Al-Falah inched by Re 0.59 to Rs 28.94 on 2.8 million shares.

With 2.6 million shares trading volume, Mohd. Farooq lost Re 0.39 to close at Rs 5.99 and Honda Atlas CarsXD closed at Rs 117.43, up Rs 3.48 on 2.5 million shares.

Bata (Pak) and Colgate Palmolive were the top gainers with Rs 137.17 and Rs 60.00 to close at Rs 3,297.17 and Rs 1,510.00, respectively. Rafhan Maize and Pak Tobacco were the top losers with Rs 124.59 and Rs 50.00 to close at Rs 10,900.00 and Rs 950.00, respectively.