Stock investors remain cautious

KARACHI: Stocks closed higher on strong earnings outlook announcement by PSO amid cautious activity ahead of SBP policy announcement.

At Karachi stock market benchmark KSE-100 share index slightly moved on by 1.90 points or 0.01 percent to stop the day’s trading at 14,761.49 points as compared to 14,759.59 points of the previous day.

Equity dealer Mohammad Rizwan observed with judiciary government standoff prolonging further, the investors remained cautious as indicative by 26pc WoW decline in volumes.

However despite above than expected results of OGDC, PSO and INDU coupled with anticipated cut in the policy rate, the benchmark index closed the week at 14,761 points, up 1pc from last week. The foreigners once again remained net buyers as they have bought share worth of $5.3m, he added.

KSE-Allshare index up by 1.60 points or 0.02 percent to close the day at 10,383.18 points, KSE-30 share index misplaced 26.36 points or 0.21 percent to end the day at 12,686.52 points while KMI-30 share index shed by 48.88 points or 0.19 percent to conclude the trading session at 25,656.53 points.

Expert said concerns for Supreme Court notice to PM on NRO verdict, uncertainty in global stocks and commodities affected the sentiments despite strong earnings outlook for banking and oil sector.

Approval of Petroleum Policy 2012 by CCI, higher exploration targets set for PPL and hopes for rate cut in key policy rate played a catalyst role in bullish sentiments in the earning announcement session at KSE, he added.

Market traded 37.629 million shares after opening at 75.362 million shares and the value of traded shares was shrunk to Rs 1.524 billion from Rs 3.052 billion. Market capitalisation settled at Rs 3.767 trillion as compared to Rs 3.766 trillion of a day earlier.

Trading took place in 241 companies where gainers beat the losers 118 to 106 and the values of 17 stocks remained intact.

Nestle Pakistan Limited and Exide (PAK) XD were the top price gainers of the day increased by Rs 109.99 to Rs 4199.99 and Rs 11.71 to Rs 246.08. Top loser of the day was led by Colgate Palmolive shed by Rs 24.07 to Rs 1313.43 followed by Bata (Pak) Limited off by Rs 19.00 to Rs 716.00.

Quice Food(R) was the volume leader of the day with 3.43 million shares as it closed at Rs 3.01 after opening at Rs 3.93 shed Re 0.92. Maple leaf Cement was on the second position with 3.160 million shares added Re 0.16 to end at Rs 7.54. It was followed by KESC with 2.735 million shares, Quice Food with 2.319 million shares and JS.Co with 1.576 million shares.