KARACHI: The market remained range-bound on Wednesday as investors decided to stay on the sidelines. The KSE-100 index slipped by 20.28 points to close at 29,477.29, after moving in a narrow band of 70 points.

Trading value declined to Rs1.85 billion which represented 17-month low. Some old timers wondered at the lack of investors’ interest in trading, since despite shortened sessions, the rallies have seldom cooled down so completely as in the current Ramazan.

After a day’s break, foreign investors resumed buying on Wednesday, purchasing shares worth $2.05 million; the major overseas in­­flow was in textiles at $0.9m, followed by banks at $0.6m.

Most brokers and analysts complained of lack of triggers. “There has to be a big reason for equities to climb from the current high level”, argued a market participant.

However, all eyes are on the upcoming SBP Monetary Policy Statement scheduled to be announced on July 19.

“The market is expecting to pick up from here post the MPS announcement, which most believe could unveil no change in discount rate”, a stock strategist said.

Investors noted with interest that the Privatisation Commission was working on the capital market transaction of OGDC to be completed by Sept 2014. The government plans to divest 10 per cent shares in oil and gas exploration giant, to raise $850m.

Ahsan Mehanti at Arif Habib Corp. stated that besides the upcoming MPS, the rising political noise, weak global stocks and commodities and impact of revised GIDC levy played a catalyst role in bearish activity at the market.

The SBP announcement on reduction of Export Re­­fi­nance Rates for exporters and industry created some positivity in investor sentiments as the corporate earnings announcement season was just around the corner.

Published in Dawn, July 10th , 2014