Karachi share market witnessed a range-bound session on Monday with the KSE-100 index oscillating between 11,350 intra-day high and 11,256 low, finally closing at 11,301.62 points level, with a nominal gain of 6.64 points. The KSE-30 index lost 52.46 points, closing at 14,102.99 points level.
Trading activity remained dull as the investors opted for cautious stance and the ready market volume remained almost level at 105.653 million shares as compared to previous 105.461 million shares. However, the futures turnover increased to 51.122 million from 35.603 million shares traded on Friday.
The overall market capitalisation stagnated at Rs 3.070 trillion. Trading took place in 345 scrips, of which 162 closed in positive column and 143 closed in negative column, while the value of 40 scrips remained unchanged.
BoP was overall market volume leader with 19.911 million shares, closing at Rs 88.00, down by Rs 4.30. NBP, MCB and Bank Al Falah closed at Rs 232.00, Rs 274.00 and Rs 45.85, down by Rs 5.80, Rs 8.00 and Rs 0.90, respectively. Picic gained Rs 1.35 to close at Rs 65.65. Lucky Cement gained Rs 1.35 to close at Rs 79.60 with turnover of 9.397 million shares.
Buying was witnessed in E&P sector following increase in oil prices in the international market. OGDC gained Rs 0.40 to close at Rs 117.20. PTCL gained Rs 1.05 to close at Rs 47.30, KESC gained Rs 0.25 to close at Rs 7.15 while Kot Addu Power gained Rs 0.30 to close at Rs 58.30.
Unilever and Nestle Pakistan were the highest gainers of Rs 95.00 and Rs 80.00 to close at Rs 2100.00 and Rs 1680.00 respectively. Wyeth Pak and Siemens Engineering were the highest losers, losing Rs 96.75 and Rs 48.00 and closing at Rs 1841.25 and Rs 1001.00 respectively.
Ahsan Mehanti, CEO of Shehzad Chamdia Securities, said that investors remained cautious on the back of uncertainty on political front. Some activity was seen in E&P sector due to increasing oil prices in the international market while profit taking was witnessed in the banking sector.
Hasnain Asghar Ali at Aziz Fidahusein Securities said that low turnover led to yet another range-bound session at KSE, although the stage was prepared over the weekend for a bullish spell. The reports by foreign funds, indicating buy, were circulated. Increase in SCRAs numbers were being highlighted, while increase in oil rates, regardless of the development that led to an increase and the impact that it could have in the region, the increase was publicised and was intended to initiate a rally. The initial high of 50 points, however, failed to invite support. On the contrary, the shift of BoP from T+0 (32.5 percent) to T+3 (XB) invited massive offloading in the stock.
Availability of the stocks at attractive rates was the reason the stocks continued to find buyers and the CFS float finally made its way to the main stream. The sentiment in other low priced and expensive banks stayed more or less same. Promising fundamentals, however, continued to invite scattered support on dips, mainly in oil and gas exploration stocks, while high weight of PTCL allowed the index to close in positive.
Low turnover is seemingly now the fate of the local bourses. Once the number in CFS are reduced (the expected reduction in the stagnant market might invite major intra-day dips), fundamentals are likely to invite consolidation with slightly higher turnover. Upside will, however, stay confined as the high trade cost and high cash requirement might not allow the stocks to trade at premium.