Sentiment at the Karachi share market remained negative on the first day of the new trading week Monday. The benchmark KSE-100 index lost 323 points with slim volumes. Overall, the KSE-100 index declined by 1.09 percent to close at 29,383 points Monday compared to 29,706 points Friday.
Commenting on the market situation, analysts said the stock market closed bearish on Monday with the market closing down 1.1 percent due to the hearing of a petition registered by an opposition party challenging the Prime Minister''s legitimacy to hold office. They said the share market is still volatile amid political unrest in the country and ahead of Eid-ul-Azha next week. Most of the investors have adopted a wait and see policy, they added.
"Profit-taking in mid-cap stocks dragged the index down as investors are focusing on upcoming Initial Public Offer," said Samar Iqbal, Assistant Vice President, Equity Sales Topline Securities. Volumes decreased to 90 million shares and value fell to $50 million or Rs 5.1 billion, she added. Gul Ahmed Textile remained active after announcing healthy payout and better earnings, while Nishat Chunian Limited kept on declining after lower than expected result announcement on Friday, she maintained.
The local bourse opened on a negative note and remained in the red zone. During the intraday trading, the KSE-100 index touched 29,337 points lowest level. Volume at the ready counter decreased by 43 percent. Overall, 91 million shares were traded against 160 million shares in previous session. Market capitalisation witnessed a declining trend and fell by Rs 78 billion to reach Rs 6.842 trillion down from Rs 6.920 trillion. Trading took place in 394 companies, of which 75 closed in green zone, 297 in the red while 22 companies remained unchanged.
Among top 10 volume leaders, all the companies closed negative. Gul Ahmed emerged the volume leader with 5.9 million shares, losing Re 0.07 to close at Rs 69.23. Nishat (Chunian) stood second, down Rs 2.03 to close at Rs 38.76 on 4.8 million shares. United BankXD ranked third with 4.6 million shares, losing Re 0.99 to Rs 184.87. With a trading volume of 3.3 million shares, P.T.C.L lost Re 0.66 to Rs 23.02. Lafarge Pak fell by Re 0.16 to close at Rs 16.61 on 3.2 million shares. Some 2.8 million shares of Pak Electron were traded and the scrip closed at Rs 26.41, down Re 0.78. Summit Bank decreased by Re 0.15 to Rs 3.03 on 2.5 million shares. Engro Fertilizer also posted a declining trend shedding Re 0.05 to Rs 53.50 on 2.5 million shares.
With a trading volume of 2.4 million shares, NIB Bank Limited closed at Rs 2.00, down by Re 0.05. Pervez Ahmed declined by Re 0.9 to close at Rs 3.29 on 2.3 million shares. Rafhan Maize and Philip Morris were the top gainers with Rs 249.44 and Rs 33.62 to close at Rs 10,900.00 and Rs 706.10, respectively. Bata Pak and Murree Brewery were the top losers with Rs 97.50 and Rs 53.57 to close at Rs 3,102.50 and Rs 1,021.25, respectively.
Analysts said Treet Corporation hit limit down as the company reported flattish yearly earnings. Volume leaders closed in the red as NCL (-5.0%), UBL (-0.5%), PTC (-2.8%) declined. "We expect the corrective mood of the market to continue with a possible short term decline," they added. Analysts said investors are closing their positions and staying cautious after a massive turnover of general public at PTI rally in Lahore Sunday. Energy, financials and materials sector dragged the whole index into red. NCL closed at its lower lock after posting much depressed financial result for FY14, they added.
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