KARACHI
Another dull session was witnessed on Monday as clarity on many issues related to upcoming budget remains. Investors preferred to stay side line in absence of any positive news. The KSE-100 index fell by 153 points or 0.4pc to close at 32,886 points level. Volatility prevailed in today's session, keeping the index mostly in red with relatively low volumes of 118m shares and value of Rs5.2b/ $5m dropped by33pc compared with those on Friday.
Third tier stocks remained in the limelight as major volume was seen in PRLR 19.6m shares, BOP 10.9m shares, KEL 7.1m shares and WTL 6.8m shares. Liquidity was expected to return as a government-backed mutual fund was supposed to start buying today.
However expectations were shattered as evidently such did not transpire as institutions preferred to stay sidelined, observed analyst Ahmed Saeed Khan. Oil sector remained depressed with the exception of NRL rose 1.7pc, as international crude oil trades below $60/bbl forcing main scripts to close in red with PSO, Hascol, ATRL and PPL closing 1.1pc, -0.6pc, 1.2pc and 0.7pc respectively. Cement and Fertilizer sectors remained depressed ignoring several positive triggers ahead of the monetary policy. The president has called for Parliament's joint session on 5th June for the announcement of the Federal budget for the year 2015-16, the analyst added. Investors seemed reserved as they hesitate to gain positions prior to the monetary policy and the budget. Expectations are of a tax heavy budget and this is probably the last monetary easing policy.
Analyst Ahsan Mehanti stated stocks closed bearish amid thin activity on post earnings season profit-taking. Pre-budget uncertainty, weakening Pak-India relations after Karachi security unrest and uncertainty over SBP policy rate stance played a catalyst role in bearish activity at KSE.