Investors attempted to sidestep the implications posed by upcoming budgetary measures where it is anticipated that the cash strapped government will seek to raise taxes. The KSE-100 index closed at 11,962.18 with the loss of 74.18 points and total volume stood at 47,098,497 along with the total value of 1,434,655,316.
An improved trade balance and balance of payment situation may improve the overall fiscal balance. But revenue shortfall and IMF payments during the upcoming year may add to the pressure. The upcoming budget is believed to be a major factor in deterring long term investors from the stock market. Furthermore, the fact that oil prices are finally trading below $100/barrel seems to be a good sign. But with lower international oil prices, the oil heavy index is likely to be dented, said Bilal Asif at HMFS.
The international scenario along with the local political arena after the killing of Osama continued to hamper investor confidence. It is interesting to note that the SACRA account witnessed an inflow from USA of around $13.82 million while investors from other countries were offloading investments. Major oil stocks dragged the index down 74 points to 11,962 with thin volumes of 64 million shares. Falling international oil prices took the edge off of OGDC’s advance as the E&P giant ended down 1.3 percent, followed by declines in PPL of one percent and POL 0.6 percent.
Banking stocks remained out of favor and were not amongst the volume leaders. Fertiliser stocks witnessed a mixed trend with FFC advancing 0.7 percent on market talk of a hike in urea prices, while Engro dipped 0.9 percent. Stocks, reporting consistent growth and offering double digit dividend yields and away from various threats did invite equity specific funds on dips, while volumetric and speculative activity in ANL and JSCL rescued the volume from entering the sinking levels.
Hasnain Asghar Ali at Aziz Fidahusein said that dips are expected for fresh placement, snap rallies backed by volumetric activity in main board stocks might however offer short term trading activity to resident participants.
Investors tepid at LSE
LAHORE – Lahore Stock Exchange (LSE) remained bearish with low trading volume. The LSE 25-share index fell 16.79 points and closed at 3,207.81. Overall traded volume was 1.93 million shares that showed a decline of 974,183 shares as compared to the previous day. Scrips of total 120 companies remained active in the trading activity, of which 20 gained value, 37 lost value and the share price of remaining companies witnessed no change.
The Bank of Punjab emerged as volume leader with 356,851 shares that was followed by Silkbank, Lotte Pakistan PTA, DG Khan Cement and NIB Bank. Millat Tractors bagged the highest gain of Rs 5.93 per share. Lucky Cement, Century Paper and Board, Fauji Fertilizer and Nimir Industrial Chemicals were among other top five gainers.
Pakistan Oil Fields lost Rs 4.68 per share and closed at Rs 325.82 while other losers include Pakistan Petroleum, Oil and Gas Development Corporation, Engro Corporation and ICI Pakistan. Staff Report
