KARACHI, April 30: Shares at the Karachi Stock Exchange failed to hold on to the 14,000 level on Monday and returned to close at 13,990.38 points, down 52.39 points for the day.
The avalanche of sell orders from ‘companies’ category of investors who disposed of $3.06 million worth equity pulled the index below the 14,000 level in the last half hour of trading.
With major financial results announcements already out and no new triggers, stock market was held in limbo for most of the day. The ‘individuals’ made purchases of $2.27m stock and foreign inflows trickled down to $0.42 million on Monday.
High net-worth individuals were keeping their faith in the market, considering the recent decline as adjustment and consolidation, rather than a prelude to a major pull back.
But small investors and some institutions thought discretion to be better part of valour and book profit at the current high levels, lest the stocks should slip further.
Market participants cited lower than expected results of some companies and concerns over economic numbers that could overshadow the upcoming budgetary pronouncements as depressing factors. But above all it was the political noise that kept investors on the sidelines.
The ugly law and order situation in the city also poured cold water over investor sentiments.
The oil and gas exploration and production (E&P) and Oil Marketing Companies (OMCs) came under heavy pressure as four of the five top losers for the day belonged to those two sectors — POL, PPL, Shell and APL.
And that was reflected by a steeper decline of 94.15 points to 12,252.16 points in the market capitalisation based KSE-30 index with (E&P) and OMCs as heavyweights.
Ahsan Mehanti at Arif Habib Corporation observed that ‘consolidation’ was seen across the board.
The KSE 100-index moved in narrow band amid thin trade. Worries over gas shortfall for the fertiliser, textile and power sectors occupied investors’ mind and so did the rising circular debt issues in energy sector, political uncertainty, deteriorating security situation in the city and limited foreign interest following uncertain global stocks on eurozone debt crisis played a catalyst role in bearish sentiments at KSE.
Market capitalisation decreased by Rs14bn to Rs3.574 trillion, from Rs3.588 trillion on Friday.
Volume of business fell 16 per cent to 164m shares on Monday, from 196m shares the previous session. Among the 369 active issues, the plus and minus signs were about evenly divided, with 156 stocks among the losers and 149 gainers with 64 shares remaining unchanged.
Nestle Pakistan gave up Rs28.04 to Rs4,155.30, followed by Pakistan Oilfields down by Rs5.77 to Rs386.74.
Among the volume leaders, Jah Sidd Co with 16m shares stood almost limit down, 99 paisa to Rs14.93. On the second slot was TRG Pakistan gaining 42 paisa to Rs4.06 on 10m shares, WorldCall Telecom receded 22 paisa to Rs2.81 on 9m shares, Fauji Cement edged higher by 3 paisa to Rs6.52 on 8m shares.
DG Khan Cement shed 19 paisa to Rs39.93 on 8m shares, National Bank lost a considerable Rs2.03 to Rs45.05 on 7m shares, due to lower than expected quarter-end results.
Lafarge Pakistan ceded 17 paisa to Rs4.83 on 7m shares, Engro Foods rose by Rs2.24 to Rs57.84 on 7m shares, Azgard Nine bogged down by 40 paisa to Rs7.04 on 6m shares and JS Investments, another punter’s play, closed on the lower limit of Re1 to Rs9.62 on 6m shares.