KARACHI – The local bourse witnessed a lackluster session with benchmark KSE-100 closing 31 points up at 11,583. No change in monetary policy on the part of the SBP failed to provide any impetus to the market as it was in line with expectations. Activity remained subdued with only 79 million shares traded. The KSE 100 index closed at 11,583.03 with a gain of 30.90 points while total volume stood at 51,997,381 along with the total value of 2,698,560,427. KSE 30 gained 45.49 points after closing at 11,303.08 levels and All Share index closed at 8,106.49 with a gain of 23.58 points.
Fertiliser remained in the limelight with FFBL and FATIMA topping volumes and FFC growing by 2.3 percent. OGDC remained under pressure while ABL and MCB led the charge in banking sector scrips. SBP kept the key policy rate unchanged for the next two months whilst advocating prudence amidst rising commodity prices and continued reliance of government on inflationary borrowing to meet shortfall. Anticipated development failed short of igniting investor’s interest, wary of development on international front. Accumulation at lower level continues to support the market as foreign interest is likely to set the tone.
Resumption of dialogue with India and the likely visit of the premier to the neighboring country has kindled hope that the opportunity can be well capitalised upon to resolve various irksome issues, though it is highly optimistic to expect any major positive outcome other then meeting of the premiers at the cricket ground. The positive impact on morale might however allow some stocks to gain ground. The availability of leverage product for ready board although on the stringent side, reduction in interest rates as investors, mainly leverage players becoming increasingly well acquainted with products. Reporting growth, despite the gloomy economic forecast, is expected to give a fillip to both trading and placement, while frontline stocks considered expensive and those dependent on group support for sustaining the attained levels are likely to result in heavy off-loading.
Since high priced stocks are still exposed to the threat of off-loading through overseas channels, extreme decline might however provide short term trading opportunities, said Hasnain Asghar Ali at Aziz Fidahusein.
