KSE Update 20 May 2009 - KSE Goes Gloomy

Stock passed through another lean session on Wednesday as leading investors remained busy with the auction of Treasury Bills amid market talk of higher yields leaving the market at the mercy of jobbers and short-term dealers.

“The performance of the benchmark index over the last couple of sessions is reminiscent of ‘ floor-era’ but the current one appears to have been Talibanised,” some analysts say linking sluggishness to the Swat operation and its fallout through the country.

A market having daily trading potential of well over Rs30 billion is being confined to a meager Rs4 billion as investors overwhelmed by the external factors have no appetite for shares available at a terribly discounts rates, the said.

The T- bill auction depending an the size and yields could give a modest push to trading on Thursday, but investors are worried about law and order and conflicting reports about the taxes in the new budget to fill in the revenue gap after the proposed cut in the petroleum prices may not allow consolidation forces to play their due role, some others fear.

Everyone is playing safe and for good reasons too and may stay away until the current dust raised on all the fronts settles down, they said.

The KSE 100-shares index posted a fresh modest fall of 7.13 points at 7,060.72 amid highly erratic movements, while its junior partner the KSE 30-shares index shed 9.01 points at 7,592.16 as leading base shares generally remained dormant.

Minus signs again dominated the list under the lead of Siemens Pakistan and Bata Pakistan, sharply lower by Rs19.87 and Rs33.25 followed by KSB Pumps, Millat Tractors, Colgate Pakistan, Service. Industries, Shezan International, Tri- Pak Films and Exide Pakistan, off by Rs3 to Rs5.16.

PECO and Atlas Honda were among the top gainers, up by Rs8 and Rs4.02.

Others rose modestly under the lead of Pakistan Petroleum, Quetta Textiles, PICT, ICI Pakistan and Adamjee Insurance, up by are Rs2.10 to Rs3.72.

Turnover figure showed a modest rise at 81m shares from the previous 75m shares but losers held strong lead over the gainers at 197 to 100, with 13 shares holding on the last levels.

JS & Co, lower by 73 paisa at Rs25.20 on 9m shares followed by D.G. Khan Cement, up Rs13 at Rs25.52 on 7m shares, Adamjee Insurance, higher by Rs3.72 at Rs80.75 on 5m shares, Lucky Cement, lower 24 paisa at Rs54.57 also on 5m shares, Arif Habib securities, easy 35 paisa at Rs26.63 on 4m shares, Fauji Fertiliser Bin Qasim, off 34 paisa at Rs16.90 on 3m shares and Bank Alfalah, steady by 18 paisa at Rs12.25 on 3m shares.

OGDC followed them, up 61 paisa at Rs73.41 on 3m shares, National Bank, off 65 paisa at Rs72.11 also on 3m shares and Engro Chemical, lower by Rs1.41 at Rs135.26 on 2m shares.