KARACHI: The stock market remained lacklustre all through the day in a range bound activity on Monday. The KSE-100 index drifted both ways in a directionless trade, but managed to close at 23,639.97 with meagre gain of 44.36 points.
With almost all of the positive and negative factors priced in including the SBP policy rate hike, the cement manufacturers’ issues, the IMF EFF outcome and the conclusion of the result season, the market was devoid of triggers.
Market ignored the ‘relief package’ for business announced by the government at the week-end. Many thought that the weakening rupee amid poor law and order situation in Karachi, such small-scale benefits were unlikely to boost sentiments.
Investors, therefore, decided to move to the sidelines as demonstrated in the heavy plunge of 65 per cent in turnover to 151 million shares, from 276m shares. Trading value dipped 56pc to Rs4.370 billion from Rs9.934bn, representing lack of trading in heavyweight and first tier-stocks.
Market capitalisation also stood still at Rs5.543 trillion.
Local investors were relieved to see foreign investors’ cherry-picking of $0.11m worth of shares on Monday against heavy outflow from the equity in the last session.
Among local participants, companies, banks and mutual funds were also buyers of stocks valued at $0.85m, $0.03m and $2.29m, respectively. Individuals, however, booked profit at the current levels by offloading $2.04m worth stocks.
Analyst Ovais Ahsan at JS Global commented that the banking sector continued to push the index into the green. MCB Bank jumped 2.3pc, NBP, 2.7pc, and UBL, 1.4pc. Those were the major gainers on the banking sector mainly on foreign institutional investment.
A mixed trend was witnessed in the cement sector as participants awaited a price hike after outstanding issues were resolved amongst the major players. Nishat Mills gained 0.7pc on the back of a 7pc YoY rise in exports in the first two months of this fiscal year.
Led by Indus Motor’s increase of 4.3pc, the auto sector also gained as expectation of a hike in car prices remained high on recent devaluation of the local currency.
Dealer Samar Iqbal at Topline Securities said rollover of future contracts also caused investors to stay cautious. Telecoms sector remained on investors’ radar as they anticipate the improvement in sector earnings, following the government’s measures to curb grey trafficking. Oil stocks witnessed profit-taking, while banking stocks remained steady.
Dealers at Sherman Securities observed that the bomb blast over the weekend in Peshawar dampened sentiments. However, they expressed optimism that regardless of a dull trading day, the low volumes on Monday indicated that the market had the potential to move higher in the short run. The analysts tagged KSE as ‘neutral to positive’.
On the top-10 volume leaders’ list, Telecard was ahead of the rest with 28m shares or nearly 19pc of the entire market volume. The stock gained 61 paisa to Rs6.30. WorldCall Telecom was down 13 paisa to Rs2.95 on 11m shares and NBP rallied by Rs1.45 to Rs56.06 on 9m shares.
An unusual third-tier textile stock, Colony Mills saw volume of 6m shares, up 39 paisa to Rs4.41, Bank of Punjab shed 2 paisa to Rs12.73 on 5m shares, PTCL softened by 9 paisa to Rs27.36 on 5m shares, Maple Leaf Cement was down 18 paisa to Rs25.63 on 4m shares and Byco Petroleum gained 55 paisa to Rs9.60 on 4m shares.
