KARACHI, July 30: The Karachi stock market showed a lacklustre performance on Monday with the KSE-100 index marginally down by 14.87 points to 15,511.54 points.

Investors avoided taking firm position and instead took a cautious stance. Yet most were happy over the fact that the index did not drop below the 14,500 points level.

Some market participants still thought that a pre-result rally was possible once important issues on the political and economic fronts were settled.

Ahsan Mehanti at Arif Habib Corporation observed that the stocks closed lower on investor concerns for uncertain macroeconomic situation, security concerns in the city and country wide protests for power outrages.

Activity remained thin despite strong corporate earnings outlook and recovery in global stocks and commodities. Concerns for rising circular debt in the energy sector, revenue loss to fertilizer sector on gas supply worries and pending CGT collection issues played a catalyst role in bearish sentiment at KSE, said Mehanti.

Samar Iqbal, equity dealer at Topline Securities commented that the market remained range bound as investors preferred to stay on the sidelines during Ramazan. Cement stocks and Bank Alfalah witnessed heavy volumes.

Lucky cement saw profit taking as investors feared that the company’s dividend payout could be affected after acquiring ICI Pakistan while ICI closed at its upper cap due to possible tender offer.

Hasnain Asghar Ali, COO at Escorts Capital observed that improved volumes allowed the sideliners wider trading opportunities despite gloomier conditions on the economic and financial front.

The unveiling of draft of CGT mechanism, to be computed and collected by NCCPL with its approval expected early next month was likely to keep the local investors poised for opportunities.

However recent downgrading by international rating agencies, widening deficit, rising government borrowings and debt retirement, would continue to restrict the activity, which otherwise carries high potential, Hasnain said.

Technical calls for short term trade that usually follows better volumes were recommended while low running multiples of singled out stocks unaffected by the visible threat on financial front and due to gas supply shortage, could be looked for accumulation.

However, prolonged stagnation and relatively low volume made high priced stocks more vulnerable, which warranted caution.

The KSE-30 index fell by 14.23 points to 12,567.47 points. Turnover rose to 82m shares with trading value at Rs3.153 billion, from 58 million shares of the trading value of Rs2.111 billion last Friday.

Market capitalisation sliped to Rs3.707 trillion, from Rs3.709 trillion. Among the 280 active stocks, 123 gained, 134 fell while 23 remained unchanged.

The heaviest fall was noted in Rafhan Maize, which plunged by Rs185 to Rs3,525, followed by Bata (Pak) Ltd down by Rs25 to Rs675. On the rising side, UniLever Pak gained Rs368 to Rs7,728, followed by Siemens Pakistan up by Rs32.69 to Rs688.

The volume leader saw Bank Alfalah on the first place with 19m shares, traded up by 83 paisa to Rs18.89. DG Khan Cement gained 42 paisa to Rs46.32 on 10m shares, as investors swapped the stock for other cement share. Lucky Cement took a dip of Rs5.44 to Rs123.85 on 7m shares, Maple Leaf Cement was up by 27 paisa to Rs6.52 on 5m shares.

Arif Habib Corp added 22 paisa to Rs33.70 on 3m shares, Jah Sidd Co lost 18 paisa to Rs15.86 on 3m shares, Fatima Fertiliser shed 6 paisa to Rs24.41 on 3m shares; PTCL slipped 39 paisa to Rs13.87 on 2m shares, Engro Foods climbed by 67 paisa to Rs70.17 on 2m shares and Nishat Mills edged higher by one paisa to Rs52.71 on 2m shares.