Index gains 2.12 points

Late buying in some select stocks by both local and foreign investors on Monday supported the KSE-100 index to recover its intra-day losses and to close in positive at 10,903.88 level with meagre gain of 2.12 points. The market opened in deep red, and the index hit 10,760.95 points intra-day low, down 140.81 points.
However, buying by both local and foreign investors after mid-session supported the index to recover its intra-day losses and to enter in positive territory at 10,921.99 points intra-day high level, up 20.23 points. The foreign investors took to fresh buying in select stocks and remained net buyers of shares worth $0.73 million.
Trading remained low and the volume at ready counter declined to 36.828 million shares as compared to 44.820 million shares traded on last trading session. Market capitalisation reduced by one billion rupees to Rs 2.895 trillion. Of 276 active scrips, 98 closed in negative and 97 in positive, while the values of 81 stocks remained unchanged.
NBP was the volume leader with 7.656 million shares. However, it declined by Rs 1.90 to close at Rs 36.18. Bank al Falah lost Re 0.12 to close at Rs 9.41 with 3.571 million shares. Fauji Fertiliser Bin Qasim and Fauji Fertiliser Co increased by Re 0.99 and Re 0.38 to close at Rs 48.34 and Rs 154.21 with 3.832 million shares and 1.180 million shares respectively, while Engro Corp declined by Rs 2.27 to close at Rs 114.37 with 0.997 million shares respectively. Lotte Pakistan PTA closed at Rs 11.07, down Re 0.01 with 2.306 million shares.
Nishat Mills surged by Rs 2.08 to close at Rs 44.32 with 2.207 million shares. DG Khan Cement lost Re 0.36 to close at Rs 19.27 with 1.224 million shares while Lucky Cement gained Re 0.80 to close at Rs 72.00 with 0.840 million shares. WorldCall Telecom lost Re 0.07 to close at Rs 1.23 with 1.036 million shares.
Nestle Pakistan and Unilever Foods were highest gainers, increasing by Rs 153.88 and Rs 79.13 to close at Rs 3565.26 and Rs 1664.13 respectively, while Atlas Battery and ICI Pakistan were worst losers, declining by Rs 6.57 and Rs 6.36 to close at Rs 218.78 and Rs 120.91 respectively.
Hasnain Asghar Ali at Aziz Fidahusein Co said that the rising political temperature led to a swift meltdown at the equity market during early trade wherein the index witnessed a triple digit decline. Already nervous due to various economic and financial matters, the recent political tremors left the handful participants with no choice. The panic in early trade thereby pushed the index into deep red, with low volume.
He said that syndicated activity in various high priced stocks by both corporate and high net worth participants did allow the index to reduce losses by day's end. Extended Eid holidays amid high temperatures, gloomy economic and financial horizon, however, disallowed follow-up support to the intra-day recovery. Dividend yielding stocks, away from various threats, mainly the Fauji group stocks from fertiliser sector continued to invite liquidity generated by sell-off in various front line expensive stocks by offering short term trading opportunities. Dumping by offshore participants in frontline banking stocks, that have now been joined by the locals on their concerns on rising NPLs, disallowed even technical recovery in the frontline banking stocks. Caution, therefore, stays the call, while the index flirts with immediately support of 10,700 points.