Stocks stay bearish
The Karachi share market remained volatile Monday on political uncertainty in Sindh after MQM - a coalition partner with PPP quit the provincial government. The benchmark KSE-100 index lost 172 points to close at 29,711 points compared to 29,883 points in the previous session. During the intraday trading, the index fluctuated in red and green zones, touching intraday high of 29,925 and lowest level of 29,672 points.
Copyright Business Recorder, 2014
Following a negative trend, the market participation remained thin and the volume at the ready counter witnessed a downward trend. Overall, some 127 million shares were traded against 159 million shares in the previous session. Ahsan Mehanti of Arif Habib said stocks closed bearish amid thin trade on political uncertainty after MQM decision to quit coalition government in Sindh.
He said for the last couple of weeks, political unrest is directly hurting the equity market and the sudden development in Sindh has forced the market players to stay on the fences. "Rising political noise, bearish trend in global equities and commodities and uncertain outlook on State Owned Enterprises'' privatisation programme played a catalytic role in the bearish activity," he added.
Market capitalisation declined by Rs 37 billion to reach Rs 6.918 trillion down from Rs 6.955 trillion. Trading took place in 384 companies, of which 108 closed in green zone, 265 in the red, while 11 companies remained unchanged. Analysts said KSE-100 Index witnessed a correction on the first trading day of the week to close at 29,711 down 0.6 percent. Investors remained uncertain today following a major political party''s decision to quit the Sindh government. Oil and gas sector continued its southwards journey due to weakness in global oil prices, they added.
Nirala Foods (NMFL) hit its upper circuit due to expectations of a turnaround in the company. EFOODS announced 9M2014 earnings of Rs 1.06 per share (vs. Rs 1.62 per share in 9M2013), the maintained. Among top 10 volume leaders, eight companies recorded a negative trend. With 11.2 million shares volume, Lalpir Power emerged the volume leader, losing Re 0.10 to close at Rs 19.22. Dewan Automobile stood second, up Re 0.48 to close at Rs 10.58 on 10 million shares. Pak Int Bulk ranked third with 6.8 million shares, down Rs 1.01 to Rs 22.63.
Ghani Automobile closed at Rs 6.39, down Re 0.02 on 5.6 million shares. Some 4.3 million shares of TRG Pak Ltd were traded and the scrip shed Re 0.73 to Rs 10.87. Maple Leaf Cement declined by Re 0.04 to Rs 28.51 on 3.9 million shares. With 3.6 million shares volume, National Bank decreased by Re 0.38 to Rs 59.95. United Bank closed at Rs 185.20, losing Rs 1.35 on 3.4 million shares. Lafarge Pak lost Re 0.07 to close at Rs 16.57 on 2.9 million sharers. With some 2.6 million shares volume, Kohinoor Textile closed at Rs 25.65, up Rs 0.50. Nestle Pak and Colgate Palmolive were the top gainers with Rs 100.00 and Rs 75.45 to close at Rs 8,100.00 and Rs 1,598.00, respectively. Bata (Pak) and Fazal Textile were the top losers with Rs 173.55 and Rs 31.00 to close at Rs 3,488.94 and Rs 851.00, respectively.