KARACHI – The local bourse vibrated within a range of 63 points, showing no clear signs of either gaining an upward momentum or following a dampened path. Low cap stocks dominated, suggesting a lack of investors’ interest towards the high worth stocks.
The KSE-100 index accumulated 12.01 points and closed at 12427.36 points, while the total volume and total value stood at 57,480,893 and 2,289,872,964 respectively. Heavy volume was seen in NICL following investors’ expectation that the company would be acquired by another group. In addition, NCL, trading at Rs 26.08 and with estimated earnings of Rs 7-8 per share, sustained the limelight.
Exploration and Production stock stayed out of color. PSO faired positively, while SSGC and banks were subtle. Newly appointed SECP chairman visited KSE and assured stock members that MTS would be implemented in a couple of months. Absence of a trigger and initiators kept the local bourse at a standstill.
The market is likely to remain lackluster and range bound. In addition, saturation levels in high priced stocks disallowed any adventure by the resident participants, as high priced stocks are likely to invite off-loading on strength provided by local corporate participants. Dampened activity by local financial groups through local and off-shore accounts kept the pressure in high priced stocks, while low priced and various mid-tier stocks invited accumulation.
NICL, on likely strategic execution, led in terms of volume while the stock contributed over 30 percent to the total turnover, allowing the overall turnover to attain decent numbers. The low volume influx in expensive stocks kept the index in green zone, disallowing wider market sentiment that stayed bearish.
Although government’s efforts, if in place, may disallow economy and various financial issues from losing further ground, political volatility along with the ballooning circular debt kept the macro situation at alarming levels, said Hasnain Asghar Ali at Aziz Fidahusein. He added that repercussions of the Arab revolution have continued to add nervousness; caution therefore stays the call.
