KSE turns volatile

Karachi Stock Exchange witnessed a volatile session Monday as investors remained worried about the political situation in Islamabad. The benchmark KSE-100 index fell by 66 points to close at 28,852 points. "Stocks closed lower amid profit-taking in bluechip banking and oil scrips on concerns for political uncertainty and the rupee instability following a hard stance by opposition leaders to derail Nawaz government through ''Inqilab March'' and ''Azadi March'' call since August 14," said Ahsan Mehanti, an analysts at Arif Habib.
He said investors fear about political turmoil and uncertainty over the outcome of the IMF talks for release of $550 million 5th tranche of the Extended Fund Facility due later this month, played a catalytic role in the bearish activity in the earnings announcement session.
During the intra-day trading, the market moved in red and green zones. The KSE-100 index also touched 29,168 points highest and 28,687 points lowest level. Investors remained cautious and the volume at the ready counter stood at 116 million compared to 104.36 million shares in previous session. The market capitalisation decreased by Rs 25 billion to Rs 6.761 trillion against previous Rs 6.786 trillion. Trading took place in 341 companies, of which 150 closed in green zone, 171 in red, while share price of 20 companies remained unchanged.
Samar Iqbal, Assistant Vice President, Equity Sales Topline, said the market moved in both positive and negative territories on the first trading day as investors remained confused on the ongoing political situation in the Capital. The market moved in a broad band of 500 points signalling that investors need concrete development on the ongoing protests by a few opposition parties, she added.
The benchmark index declined by 0.15 percent to close at 28,874 points while the volume showed a slight improvement to 116 million shares. The value rose to USD73 million (PKR Rs 7.3 billion). In addition, PPL witnessed a healthy volume amid institutional activity, she maintained.
Among top 10 volume leaders, 6 companies recorded a positive trend. B.O.P emerged the volume leader with 14.78 million shares at Rs 8.18. Maple Leaf Cement stood second, up Re 0.43 to close at Rs 27.97 on 6.45 million shares. Lafarge Pak closed at Rs 15.61, up Re 0.03, on 6 million shares.
Pak Petroleum declined by Rs 3.07 to Rs 223.82 on 5 million shares. Some 4.6 million shares of Fauji Cement were traded to close at Rs 20.01, up Re 0.11. D.G.Khan Cement lost Rs 1.94 to close at Rs 76.20 on 4.3 million shares. Pak Elektron Ltd moved up by Re 0.78 to Rs 28.18 on 3.6 million shares.
With a trading volume of 3.1 million, National Bank lost Re 0.30 to close at Rs 58.69. PSO gained Rs 2.13 to Rs 379.15 on 2.8 million shares. Adamjee Insurance increased by Re 0.49 to Rs 48.87 on 2.4 million shares. Rafhan Maize and Island Textile were the top gainers with Rs 100.00 and Rs 40.00 to close at Rs 10,500.00 and Rs 900.00, respectively. Bata (Pak) and Pak Tobacco were the top losers with Rs 130.00 and Rs 38.49 to close at Rs 3,300.00 and Rs 1,000.51, respectively.
Ovais Ahsan, an analyst at JS, said the market saw a volatile session on Monday as the political situation remained in a state of flux. The protest in the Capital by two political parties preyed on sentiment as investors remained cautious with no apparent compromise emerging from either the government or the protesters and with both sides upping the ante, he added.