After a week of bullish trend, the Karachi Stock market on Monday closed in a bearish manner as investors preferred booking profits in banking sector. The benchmark KSE-100 lost 36 points to close at 16,538 points. The market opened in green zone and gained some 60 points in initial hours, however, later the market ended lower. KSE-100 index also hit ever highest level of 16,634.04 points in intraday trading and a low level of 16,529.75 points.
"In spite of lower than expected inflation for November 2012, no major activity was seen at local bourses," said Samar Iqbal, an equity dealer at Topline Securities. She said that on the first day, investors preferred to book profits in banks amid hope that a further decline in policy rate will affect their margins.
Due to bearish trend, trading activity was dull and overall 195.592 million shares were traded at ready counter as compared to 312.258 million on Friday. Market capitalisation was declined by Rs 17.325 billion to Rs 4.134 trillion from Rs 4.152 trillion. Among top 10 leading scrips, Sui North Gas Company was the volume leader with 16 million shares trading and its share price declined by Re 0.03 to close at Rs 24.13. Share price of Bank Al-Falah gained Re 0.07 to close at Rs 16.81 with 14 million shares. With turnover of 13 million, the share price of Fauji cement down by Re 0.04 to Rs 6.91 per share. Jah Sidd Co gained Re 0.33 to close at Rs 17.56 with 12 million shares.
Some 8.2 million shares of National Bank of Pakistan were traded on Monday and its share price lost Re 0.78 to Rs 49.08. Engro Corporation gained Rs 1.22 to close at Rs 97.33 with eight million share trading. With turnover of 7.6 million, share price of KESC stood at Rs 6.9, up by Re 0.02. Share price of Bank of Punjab increased by Re 0.17 to close at Rs 9.3 and its some 6.8 million shares were traded. Share price of Maple Leaf Cement lost Re 0.49 to Rs 14.44 and NIB Bank Limited share price increased by Re 0.01 to Rs 2.39 with trading volume of 4.6 million and 4.1 million respectively.
Island Textile and Sanofi-Aventis Pak were the highest gainers and increased by Rs 47.55 and Rs 8.97 to Rs 998.73 and Rs 375 respectively. While, Nestle Pakistan and Unilever Pak were the worst losers and declined by Rs 232 and Rs 163.58 to close at Rs 4,423 and Rs 9995.96 respectively.
Hasnain Asghar Ali, Chief Operating Officer (COO) of Escorts Capital said that tough comments by IMF regarding health of the economy and financial imbalances, coupled with tense law & order situation in the city and stern comments by the political participants was seemingly enough ingredients for a bearish trend.
"Presence on renewed buying on dips, due to low multiples and consistent yields averted major negativity and the benchmark stayed in a technical adjustment phase the frontline banking stocks along with cements, fertilisers and singled out stocks from various other sectors," he added.
He said that gas distribution companies that provided wider opportunities to the market participants due to satisfactory progress on gas pipeline project kept volumetric contribution of the quality stocks on higher side, besides restricting any major adjustment decline in overall value and volume of trade however kept the day traders on sidelines. However, he believed that, upcoming monetary policy, out-come of strategic dialogue with US and timely auction of 3G license is likely to dominate the proceedings at the KSE in the running month.
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