KSE Update 19 May 09 - Investors Continue to Show Low Interest

The share market on Tuesday lacked normal trading interest as leading investors kept to the sidelines having an overview of the Swat operation and its likely impact on the economy and stock business. The KSE 100- shares index was off 105 points or 1.46 per cent at 7,067.85.

“The perception that the Swat operation that the Swat operation may be quick is not compatible with the ground realties,” analysts believe. “ Most of investors having some rethinking on the issue are planning a new strategy to minimise financial risks in the developing situation.

Budget uncertainties notably on fears of imposition of taxes on the capital market and pressures on the economy are also taking their toll, they added.

The fall un the turnover figure at 75m shares reflected that buying interest from all the quarters was fading and most of the active investors were knocking at the exit outlets.

“One can give hundred reasons behind the market’s current plight but the hard fact is that it lacked normal buying support and no one is inclined to make fresh commitments,” said a broker and added that everyone was looking for a safe haven.

While renewed selling by some of the leading foreign investors continued to have its toll even on the blue chip counters, support from the state Enterprise Fund and financial institutions was progressively falling leaving the market at the mercy of jobbers.

Although the KSE 100-shares index posted a fresh loss of 1.46 per cent or 105.00 points at 7,067.85 on the weakness of leading base shares, price changes on the either list were modest reflecting a near-status quo.

Its junior partner the KSE 30-shares index, which resisted fresh fall a day earlier, also followed the market’s general line of action and fell by 182.18 points or 1.84 per cent at 7,601.17.

Unlike the previous sessions, most of the price changes on the entire list were moderates and in no way reflected panic-selling even from the foreign investors.

Minus sign dominated the list under the lead of Unilever Pakistan and Bata Pakistan, off Rs11.33 and Rs35 followed by MCB Bank, Mehmood Textile, Pakistan Oilfields, Pakistan Petroleum, Ferozsons Lab, Arif Habib Ltd and Sanofi-Aventis, off by Rs3.36 to Rs7.48.

Nestle Pakistan and Colgate Pakistan were leading among the gainers, up by Rs7 and Rs9 followed by JS Global, Atlas Honda, Millat Tractors, PICT and Clover Pakistan, which rose by Rs2.17 to Rs4.02.

Trading volume further shrank to 75m shares from the previous 110m shares as losers held a strong lead over the gainers at 203 to 101, with 16 shares holding onto the last levels.

JS & Co came un for active selling and led the lest of actives, off Rs1.16 at Rs25.93 on 10m shares followed by Arif Habib Securities, easy by 76 paisa at Rs26.98 on 5m shares, D.G Khan Cement lower 51 paisa at Rs24.39 also on5m shares, Lucky Cement, off Rs 1.59 at Rs54.81 on 3m shares and MCB Bank, off Rs3.36 at Rs8.96 also on 3m shares.

OGDC followed them, off 75 paisa at Rs 72.80 an 3m shares, Pakistan Oilfields sharply lower by Rs4.51 at Es148.90 also on 3m share, Adamjee Insurance fell by Rs2033 on 2m shares, Engro Chemical easy by 26 paisa at Es136.67 also on 2m shares and Bank Alfalah down 27 paisa at Es 12.07 in 2m shares.