KSE index remains firm on improved political situation

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KARACHI: The Karachi Stock Exchange’s benchmark 100-index on Monday recovered from the declining trend in triple-digit in the first session and ended almost unchanged as political situation improved and protesters in Quetta ended their sit-in, said dealers.

Zafar Moti, senior member of the KSE, said that the market went down with the uncertain political situation but improved after political situation improved and sit-in was called off. After suspension of mobile service, rumours engulfed the market that roads were closed and nobody could reach their offices. Some said even landlines were shut off. “When the mobile service was restored, traders felt life within themselves,” he said.

The KSE-100 index fell by a little margin of only 1.53 points to 16,633.18 points against 16,634.71 points recorded in the last session. The index, at one time, improved to 16,645.89 points. The low level of the day was recorded at 16,513.59 points.

The KSE-30 index declined by 15.68 points, or 0.12 percent, to 13,582.35 points in the session.
Along with the index, turnover and value declined in the market. Turnover fell by 39 million shares to 87.94 million shares from 116.17 million shares, whereas value declined to Rs1.68 billion against Rs3.20 billion recorded in the last session.

Hasnain Asghar Ali, chief operating officer at Escorts Capital, said that sit-ins across the country, ongoing long march towards the capital, left little for the investors but to stay aloof, thereby, leading a triple-digit decline at the start of the day. However, as the day progressed recovery did come in as the presence of values did restrict investors from entering panic selloff.
“Selective accumulation in cement, fertiliser and banking sector stocks along with various singled out stocks did restrict any major negativity and the benchmark managed to close unchanged, while low-priced TRG and FCCL led the turnover,” he said.

Concerns over the likely fallout of the long march in the making, remarks of the visiting International Monetary Fund (IMF) team and tension across the border are likely to restrict any major activity. Low volume price erosion that was likely to stay a regular event could, therefore, be awaited for fresh investment in the stocks having high payout ratios, he said.
Ahsan Mehanti, analyst at Arif Habib Corp, said the stocks closed bearish at the KSE with lower activity amid political uncertainty. Investors awaited the outcome of the long march for electoral reforms in the

Institutional support in cement and oil stocks led the index to close above its session lows, despite concerns over the countrywide protests against the poor law and order situation. “Higher global commodities, positive talks with the IMF on macroeconomic assessment, strong valuations and hopes for easing political uncertainty affected the sentiment,” he said.
Samar Iqbal, equity dealer at Topline Securities (Pvt) Ltd, said investors remained confused about the ongoing political situation in the country. The market that fell down more than 100 points in the morning session recovered during the day after city’s situation returned to normal.

“FCCL remained in the limelight due to instructional buying with the volumes of 31 million shares, which accounted for 36 percent of the total turnover,” she said.

Fahad Ali, analyst at JS Research, said that Pakistan’s equity market remained lacklustre for most of the day where volumes were also on the lower side.

“Political uncertainty played on investors’ minds as the country witnessed widespread protests against the Shia genocide and long march for electoral reforms in the capital,” he said.

Highest increase was recorded in the shares of Nestle Pakistan Ltd, which increased by Rs175 to Rs4,775 per share, followed by Shezan International, which rose by Rs19.30 to Rs409.30 per share.

Major decline was witnessed in the shares of Bata (Pakistan), which fell by Rs24 to Rs1,276 per share, followed by Attock Petroleum Ltd that declined by Rs6.53 to Rs500.48 per share.

Stocks that recorded significant turnover included Fauji Cement, TRG Pakistan Ltd, Byco Petroleum, Jahangir Siddiqui Co and DG Khan Cement.

Fauji Cement was the volume leader with a turnover of 31.31 million shares as it increased by 30 paisas to Rs7.04 per share, followed by TRG Pakistan Ltd with a turnover of 11.53 million shares as it gained 77 paisas to close at Rs5.98 per share.

Shares turnover in the futures market fell to 3.89 million from 7.68 million shares traded in the previous session. Of 287 companies’ shares traded, 124 advanced, 133 declined and 30 remained unchanged.

Courtesy:  The News

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