KARACHI, May 7: The stock market closed flat with a token gain of 6.04 points to settle at 19,262.74 points. The market seemed to be making efforts to close positive, though several indicators suggested that investor attitude was fast changing to ‘wait and watch’ in the face of frenzied campaigns for the elections, which are only four days away.
The contribution of 50 points by the two heaviest weighted stocks in the index, OGDC and MCB Bank, supported the index from tumbling into the red.
Unlike Monday, the stocks could climb only 36 points above the earlier day’s close to the high at 19,298 points but dipped by 94 points to intra-day low at 19,169.13 points.
The fact that some big ticket heavy-weighted index shares were major contributors was also seen in the steep decline in trading value of shares by Rs1.812 billion for the day to Rs5.256 billion, from Rs7.088bn the previous day. It was despite the increase in trading volume to 173 million shares from 137 million shares.
The positive closing also seemed deceptive since out of the 371 shares traded on Tuesday, the losers at 213 were way ahead of the gainers at 131 stocks.
Figures released by the National Clearing Company of Pakistan showed that almost all local investors continued to book profit. Companies made net sale of $4.74 million worth. Banks sold $2.78 million, mutual funds $1.58 million and individuals $0.68 million worth stocks.
‘Other organisations’ bought shares valued at $2.09 million. Foreign inflow on Tuesday was again in the hefty sum of $7.68 million with the bigger contribution from Lever Overseas as the foreign parent continues to mop up shares held by other shareholders in the company’s Pakistani subsidiary, Unilever Pakistan.
Analyst Veer Bajaj at JS Global observed that after a positive start, the KSE-100 index continued its intraday correction and index consolidated above the 19,000 mark with low volumes witnessed in blue chip stocks.
On the political front the picture remained gloomy and shaky ahead of the coming elections. Value buying was observed in banking and insurance sectors with MCB, UBL, SNBL, NBP and AICL being picks of investors.
Investors also showed some interest in PPL on news of its expansion as the stock gained one per cent. Volumes were also registered in third tier stocks. Ahsan Mehanti at Arif Habib Corp stated that sentiments remained positive though trading was thin post major quarter earning announcements.
Renewed foreign interest and release of funds for PSO to ease circular debt in energy sector were positive despite concerns for $600m IMF repayments in May.
On the equity sales desk of Topline Securities, Samar Iqbal commented that in the absence of any trigger, market continued to consolidate ahead of general elections.
Renewed buying interest was seen in Fauji Cement amid expectation of better earnings due to debt swap. OGDC and PPL also remained on investors’ radar.
Market capitalisation decreased by Rs4 billion to Rs4.771 trillion on Tuesday, from Rs4.775 trillion the previous day.
Fauji Cement led the volume leaders with 62 million shares, traded 93 paisa up to Rs9.94. TRG Pakistan shed 26 paisa to Rs9.68 on 11m shares; Jah Sidd Co was down by 54 paisa to Rs10.48 on 6m shares.
Engro Corporation slipped 4 paisa to Rs135.03 on 6m shares, Soneri Bank added 13 paisa to Rs7.10 on 5m shares, Maple Leaf Cement declined 23 paisa to Rs18.27 on 5m shares, NBP was up by 19 paisa to Rs38.81 on 4m shares, Adamjee Insurance jumped by Rs3.20 to Rs82.49 on 4m shares PTCL down 26 paisa to Rs 17.61 on 3m shares and Lafarge Pak Cement gained 21 paisa to Rs6.30 on 3m shares.