Having tumbled by concerns for an upward revision in the policy rate by the State Bank a day earlier, the Karachi equity market on Friday ended up in an interesting situation.
A mixed trend prevailed on the Karachi Stocks Exchange (KSE) with the bourse’s major indexes setting in different zones. The free-float KSE-30 index and All Share Index lost respectively 19.49 and 11.95 points the benchmark 100-share index managed to close at a positive note by gaining a meagre 0.36 points, almost flat.
The investors’ concern over almost 50 basis points monetary policy tightening by the central bank next week seemed hardly allowing the positive earning announcement outlook to drag the benchmark index in the positive zone.
The KSE100-share index closed almost flat at 22,714.68 points against Thursday’s 22,714.32. The intra-day high and low was recorded at 22,936.35 and 22,583.89 points, respectively. “(The) stocks closed higher led by second and third tier stocks on strong earnings outlook,” said equity analyst Ahsen Mehanti.
The rally was led by oversold stocks across the board amid consolidation in the earning announcements session after higher than expected earnings announcement by the UBL, added Mehanti, also a director at Arif Habib Corporation.
Renewed foreign interest in selected oil and banking stocks, easing circular debt concerns after raise in power tariff and hopes for early privatisation of state-owned enterprises, Mehanti said, played a catalyst role in turning Friday’s activity positive at the Exchange.
“Institutional support remained in banking stock amid expectations for SBP tightening early next week after CPI clocked at 8.2pc in July’13,” said the analyst.
The KSE-30 index, however, closed negative at 17,617.21 points. The All Share index, another notable, also lost at 16,299.17 points.
The risk-averse investors played cautiously on the last trading day of the week the end of which would mark entry into next week when the State Bank is likely to increase the cost of borrowing for businesses. The trading volume at the ready-counter further contracted and was recorded at 171.6 million shares compared to Thursday’s 217.488 million. On Wednesday this number stood at 252.124 million.
Following a southward trend the scrips also kept shedding value as all the shares traded Friday depreciated to Rs 6.8 billion from Rs 10.263 billion of Thursday.
Of the total 343 scrips traded 180 gained value, 143 lost and 20 remained unchanged.
The market capital also continued sliding and shrank to Rs 5.611 trillion compared to Rs 5.615 trillion of the previous trading session.
The trading mostly was dominated by the second and third tier scrips.
Bank of Punjab replaced Fauji Cement as a volume leader of the day by counting its traded shares at 19.49 million. In terms of value the public sector bank saw its stakes appreciating from Rs 13.02 from Rs 12.59. Bank of Punjab, Engro Polymer, Nimir Ind. Chemicals, NBP, Fauji Cement, NIB Bank, Engro Foods, Maple Leaf, Lafrage Pak, and PTCL were other best performing scrips. On the future market, the bearish trend prevailed and the trading turnover dipped to 14.9 million shares from 28.98 million of Thursday.
