KSE closes on 16,905.33 points on institutional profit-taking

KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-index crossed the psychological level of 1,7000 points in the intra trading session on Monday, said dealers. However, the index could not stay above the level and closed at 16,905.33 points with a decline of 37.86 points against the last session on institutional profit-taking, dealers said.

“Stocks closed lower on institutional profit-taking after the index crossed the historical high of 17,000 level,” said Ahsan Mehanti, analyst at Arif Habib Corp. “Higher global commodities led to positive sentiments in the trading session amid concerns for rising political uncertainty after the political leaders call for long march on January 14.”

Lower CPI inflation expectations for December 2012, the release of $688 million under the US Coalition Support Fund and positive fertiliser off-take data for FFC and FFBL affected sentiments. “Falling banking spreads and global uncertainty over the US fiscal cliff approval affected foreign inflows at the KSE,” said Mehanti.

The KSE-100 index fell by 37.86 points or 0.22 percent to 16,905.33 points against 16,943.19 points recorded in the last session.

The index, at one time, reached a high level of 17,032.05 points during intraday session but could not sustain it, while the low level of the day was recorded at 16,889.98 points. The KSE-30 index declined by 31.56 points or 0.23 percent to 13,764.00 points in the session.

Contrary to the index, turnover and value both increased in the market. The turnover improved by 23 million shares to 177.67 million shares, from 154.45 million shares, whereas the value increased to Rs4.43 billion against Rs3.65 billion recorded in the last session.

Hasnain Asghar Ali, COO of Escorts Capital, said that off-loading at the landmark level initiated in exploration and production stocks, mainly POL, pulled the index down from yet another historic level.

“Although fresh inflows from institutional quarters in frontline stocks did keep the benchmark away from an otherwise extensive decline, negativity and the absence of follow-up support clipped the gains in other frontline stocks,” he said. “Thus, leading to a negative close for the benchmark on the last session of 2012.”

Profit-taking and the absence of follow-up support on strength in frontline stocks, which disallowed the benchmark to close the year at 17,000 points may therefore not disturb the overall sentiment, he added.

“Nevertheless, with the presence of value in various frontline and low-tier stocks due to a paradigm shift in policies and materialisation of various international commitments, local equities are likely to invite fresh funds in frontline stocks on consistent growth and payouts,” he said.

Samar Iqbal, an equity dealer at Topline Securities (Pvt) Ltd, said that athough the market crossed 17,000 points for the first time, it closed below the psychological level. “The Bank of Punjab remained in the limelight after the news of recovery of funds. Volumes also showed some sign of improvement as the year end factor is fading out. All in all, the market gained 49 percent in the calendar year 2012 because of substantial decrease in interest rate,” she said.

The highest increase was recorded in the shares of Unilever Food, which increased by Rs100.00 to Rs4,300.00 per share, followed by Colgate Palmolive, which rose by Rs30.55 to Rs1,500.00 per share. A major decline was noted in the shares of Unilever Pak, which fell by Rs400.00 to Rs10,100.00 per share, followed by Nestle Pakistan Ltd. that declined by Rs166.67 to Rs4,733.33 per share. The stocks that recorded significant turnover included Byco Petroleum,the Bank of Punjab, PTCL, Maple Leaf Cement and NIB Bank Ltd. Byco Petroleum was the volume leader with 16.31 million shares with an increase of 53 paisas to Rs14.45 per share, followed by the Bank Of Punjab with 12.53 million shares and an increase of Rs1.00 to Rs10.70 per share.

Shares’ turnover in the futures market fell to 6.86 million shares from 28.24 million shares traded in the previous session. Of a total of 350 companies’ stocks traded, 141 advanced, 184 declined and 25 remained unchanged.

Unilever Food Rs100.00

Closing Rs4,300.00

Colgate Pal Rs30.55

Closing Rs1,500.00

Indus Dyeing Rs27.45

Closing Rs625.00

Unilever Pak Rs400.00

Closing Rs10,100.00

Nestle Pak Rs166.67

Closing Rs4,733.33

Bhanero Tex Rs12.99

Closing Rs257.01

Posted in: Business news