The delay in PSO''s privatisation and an alleged fraud in BoP created uncertainty among the investors as the Karachi Sock Exchange (KSE) started on negative note and at one time the KSE-100 index fell at 13,505.97 points intra-day low level on Thursday. The cement sector performed well and supported the index to recover huge loses.
Finally, the KSE-100 index closed at 13,545.80 points level, with a marginal loss of 10.93 points while the KSE-30 index lost 19.44 points to close at 16,878.35 points level. The market witnessed heavy trading activity as the ready market volume increased to 410.088 million shares as compared to 340.293 million shares traded a day earlier.
The futures market turnover also increased to 73.916 million shares against 56.427 million shares changed hands previously. The overall market capitalisation slightly declined by Rs 2 billion to Rs 3.939 trillion. Trading took place in 405 scrips out of which 187 scrips closed in negative column and 176 scrips closed in positive column while the value of 42 scrips remained unchanged.
The Bank of Punjab (BoP) was the overall market volume leader of Thursday with 37.718 million shares, however, the scrip lost Rs 3.55 to close at Rs 114.00 due to alleged fraud of around Rs 6 billion to 8 billion in the bank.
The cement sector performed well as DG Khan Cement, Lucky Cement and Maple Leaf Cement surged by Rs 1.80, Rs 5.75 and Rs 0.75 to close at Rs 116.40, Rs 126.75 and Rs 23.85 respectively, while Fauji Cement closed at the same level without any change.
Fauji Fertiliser Bin Qasim also remained active and gained Rs 0.65 to close at Rs 38.30. Buying activity was also seen in the technology and communication sector as WorldCall Telecom increased by Rs 0.55 to close at Rs 18.35, while TRG Pakistan lost Rs 0.30 to close at Rs 13.10.
In the other top 10 volume leaders, Picic gained Rs 2.85 to close at Rs 84.00, whereas Bankislami Pak increased by Re 1.00 to close at Rs 14.55. Ahsan Mehanti at Shehzad Chamdia Securities, said the delay in PSO''s privatisation and an alleged fraud case in BoP created uncertainty at the share market which was at negative levels from its beginning.
An other negative news on political front regarding opposition''s reference against the prime minister also created negative sentiments and the market remained in selling pressure, he added.
The banking and oil sectors mainly affected adversely and most of the relative stocks closed in negative column, while the cement sector supported the index by fresh buying in the relevant stocks on the back of rumours of removal of tax rebate from Chinese government to its cement exporters, said Ahsan Mehanti.
Muhammad Fahad Qasim an analyst at Atlas Capital Market, said the market opened under the shadow of negative news in the Bank of Punjab. Alleged fraud of Rs 6 billion to Rs 8 billion was reported. A late clarification by the BoP management was unable to restore confidence of investors.
He said the pre-qualified parties for PSO''s bidding demanded more time from the Privatisation Commission. This shattered the hopes of an early conclusion of the transaction. After a depressing first few hours, rumours regarding removal of rebate facility from Chinese government to its cement exporters, created positive momentum in the local cement sector, he added.
Investors felt that it will be a good opportunity for local producers specially DG Khan Cement and Lucky Cement to increase exports in the international market, as they are lower cost and higher quality manufacturers, said Qasim. Few last minutes witnessed some fresh buying in PTC, which resulted in the recovery of the index, leaving it with just 10 points negative.