Karachi stocks end nearly flat in lackluster trade

Karachi stocks ended little changed on Wednesday with weakening oil prices and an ongoing investigation against a brokerage house kept the trade lackluster, dealers said.

“Lackluster activity was seen at the bourse as index heavy weight oil and bank stocks remained depressed,” said Topline Securities in it post market note.

The Karachi Stock Exchange's (KSE) benchmark 100-share index fell 15.21 points, or 0.05 percent, to close at 32,968.26 points. It rose by 139.81 points to intraday high of 33,123.28 points in the first half of the session from pre-opening level of 32,983.47 points. The index lost 192.91 points to intraday low of 32,930.37 points.

KSE 30-share index fell by 45.45 points, or 0.23 percent, and closed at 19,334.65 points.

Volumes fell 29 percent to 100.52 million shares as compared to 142.38 million shares. Trading value declined to Rs6.94 billion from Rs8.51 billion. The market capitalisation fell to Rs9 billion. 

Out of a total of 320 active stocks, 176 closed with decline in their prices, 123 closed with increase, and 21 closed with no change.

Fawad Khan at KASB Securities said the index was volatile in the early trade as the ongoing investigation "continued to play on the minds of investors." The situation has forced investors to remain on sidelines and adopt a wait and see strategy."

Cement sector continued to witness positive rally as investor believed that earnings would improve on the back of healthy sales and upcoming China Pakistan Economic Corridor's projects. Subsequently, Gharibwal Cement surged five percent, Kohat Cement increased 1.22 percent and Lucky Cement up 0.28 percent.

News related to contract of Ferozsons (Lab) Pharmaceutical with Punjab government helped the stock to close by maximum of five percent. Other pharmaceutical stocks also remained in the limelight as The Searle Com also closed up five percent, and Abbott Lab surged 3.23 percent.

Arhum Ghous at JS Global Research said Oil and Gas Development Company lost 0.95 percent and Pak Oilfields Limited declined 0.16 percent as the international oil prices remained at over 11 year lows on high US inventories.

Fauji Fertilizer Company closed down 0.52 percent as urea prices declined in the international markets, implying lower gap between local and international urea prices.

Profit taking was seen in Pak Elektron (lowered by 0.29 percent) after two consecutive days of positive close since it announced issuance of Right Share, he said.

TRG Pakistan was volume leader with 7.36 million shares, as it closed at Rs34.65 with a gain of six paisas.

This was followed by Pak Elektron with 6.78 million shares which closed at Rs68.12 with a loss of 20 paisa.

Gharibwal Cement recorded trade in 6.26 million shares, as it closed at Rs48.27 with a gain of Rs2.29.