KARACHI, May 21: The KSE 100-share index shed 57 points to close at 12,283 on the first day of trading this week on Monday. Traders said that the market had shed nearly half of the gains of 92 points that it had made on Friday.
“Given the lacklustre interest of investors in risky equity trading in the face of several uncertainties, it was not surprising for the market to have taken a pull back,” said Yousuf Iqbal, an equity dealer.
He said that the fact that the market had dropped by only 0.46 per cent on Monday and that it had represented a rise on Friday, went to show the intrinsic strength of the stocks.
Analysts said that fundamentally things were as nice as could be. Reserves were rising; record remittances were flowing in, a good chunk of which went into the capital markets. And corporate news and earnings were also encouraging.
“The problem was on the political and other fronts,” said analyst Muslim Raza. The major concerns that kept most investors to the sidelines on Monday were the perplexing issue of Lal Masjid and the baton-wielding brigade and an evident uncertainty on the part of the government on how to deal with the matter.
The news of arrival of an FBI team from US to uncover the trails of insider trading in equities in the New York Stock Market by an ex-investment banker employed at one of the smaller local banks, set off a chain of rumours.
The claims and counter claims by political parties of who actually was responsible for the unfortunate events of May 12 in Karachi and the gathering storm over the CJP issue were beginning to give small jolts to the market. Under the circumstances, both individual and institutional investors appeared to have postponed customary pre-budget buying.
“Uncertainties and not bad news is the chief culprit for the market decline,” said one analyst.
The KSE 100-share index lost 57 points on Monday to recede to 12,283 points. The market float-based 30-share index saw about the same loss of 58 points to close at 15,229 points.
Stocks that showed substantial fall included: Fazal Textile down by Rs11.05 and Adamjee Insurance, lower by Rs10.05. Other prominent losers included Shell Pakistan, EFU General Insurance, Central Insurance, Pakistan Refinery, which declined by Rs4.80 to Rs7.90.
Siemens Pakistan and Shell Gas LPG were leading gainers, which showed an increase of Rs71 and Rs10.75. Other prominent gainers included Jahangir Siddiqui Co, JS Global, Lakson Tobacco, Pakistan Engineering, Rafhan Bestfood, Unilever and Mirpurkhas Sugar, which rose by Rs5 to Rs9.90.
Trading volume showed a sharp decrease to 129 million shares from 207 million shares that came up for trading on Friday.
Losing scrips which stood at 198, outnumbered gainers at 135 with 39 shares closing at their previous levels.
Bank Alfalah topped the list of actives, up by 15 paisa to Rs56.50 on 10 million shares, followed by Azgard Nine which shed Rs1.65 to close at Rs33.25 with trading in 9 million shares, OGDC decreased by 25 paisa to Rs119.75 on 8 million shares, TRG Pakistan was down 5 paisa on 7 million shares, WorldCall Telecom down 30 paisa to Rs16.25 on 5 million shares, Telecard improved 20 paisa to Rs10.60 on 5 million shares and Bank of Punjab down by 25 paisa to Rs104.75 on 5 million shares.
FORWARD COUNTER: Bank Alfalah May contract gained 30 paisa with trading in 3 million shares. It was followed by OGDC, which shed 10 paisa to close at Rs119.90 on 2 million shares. Fauji Fertiliser Bin Qasim down 64 paisa to Rs36.21 on 2 million shares and Lucky Cement down 90 paisa to Rs98.40 on 2 million shares.
DEFAULTER COS: The section witnessed trading in several sectors. Shagarganj Food was up by Re1 to Rs9 on 58,500 shares, Asset Investment Bank rose 30 paisa to Rs5 on 0.5 million shares, N.P Spinning Mills gained Rs1.40 to Rs30.35 on 1500 shares, Quality Steel down by 95 paisa to Rs10.50 without any trading, Metro Steel shed 70 paisa on 3,000 shares to close at Rs19.90.