Participants on the sidelines

KARACHI (November 18 2008): Uncertainty over the 'floor; mechanism kept the market participants on the sidelines and KSE-100 index remained unchanged at 9,184.09 points. Some activity in second-tier companies, however, supported the all share index increased slightly by 0.23 points to close at 6,639.36 points.

The ready market volume amounted to 87,200 shares as compared to previous 57,920 million shares. No trading took place on futures counter. Market capitalisation declined by Rs 411 million to Rs 2,827.322 billion. Out of the 14 active scrips, four closed in positive and three in negative while the value of seven scrips remained unchanged. National Assets was market leader with 40,000 shares. However, it lost Re 0.06 to close at Re 0.44.

Gharibwal Cement gained Re. 0.46 to close at Rs 16.66 with 13,000 shares. Habib-ADM Limited lost Re. 0.21 to close at Rs 9.99 with 6,500 shares. UDL Modaraba increased by Re. 0.20 to close at Rs 3.25 with 6,000 shares. Southern Electric closed at Rs 3.61, up by Re. 0.01 with 5,500 shares.

Nimir Resins remained unchanged at Rs 5.05 with 5,000 shares. Nimir Ind Chemical closed at Rs 2.13 without any change with 5,000 shares. NIB Bank remained unchanged at Rs 8.45 with 2,000 shares. Pak Datacom closed at Rs 46.00 without any change with 1,000 shares. Mukhtar Textile closed at Re. 0.55, up by Re. 0.01 with 1,000 shares.

Gharibwal Cement and UDL Modaraba were the highest gainers and gained Re. 0.46 and Re. 0.20 to close at Rs 16.66 and Rs 3.25 respectively while Sitara Energy and Habib-ADM Limited were the worst losers and lost Rs 19.50 and Rs 9.99 respectively.

Hasnain Asghar Ali at Aziz Fidahusein Securities said that the long awaited decision of going to IMF has been taken. With deal with IMF almost done, outcome from friends of Pakistan is likely to be positive. Developments will certainly refuel the economic engine. Further delay in unfreezing the market, therefore, might raise some questions.

The local bourses may adjust accordingly. The fear that an absolute adjustment might give birth to various internal issues is supposed to be the major hurdle in timely opening. Rumours suggest that there are high chances that decision regarding opening may be taken in the meeting of the board of directors of Karachi Stock Exchange for November 18, 2008.