Trading improves slightly

KARACHI (December 02 2008): Trading volume at Karachi Stock Exchange increased slightly on Monday mainly due to some activity in a few second-tier stocks. However, the KSE-100 index once still remained unchanged at 9,187.10 points. The trading volume in ready market increased to 102,900 shares as compared to the lowest level of 3,700 shares of last Friday. However, no trading was recorded at the futures counter.

Out of the total 11 active scrips, two closed in positive and one in negative while the value of eight scrips remained unchanged. National Assets was volume leader with 83,000 shares. However, it lost Re. 0.05 to close at Re. 0.40. Pak Datacom gained Re. 0.27 to close at Rs 48.97 with 9,700 shares. Habib-ADM increased by Re. 0.37 to close at Rs 9.74 with 3,500 shares.

Millat Tractors remained unchanged at Rs 163.92 with 2,700 shares. Redco Textile closed at Re. 1.00 without any change with 2,000 shares. Zeal Pak remained unchanged at Rs 1.16 without any change with 500 shares. Trust Modaraba closed at Rs 1.35 without any change with 500 shares.

Mukhtar Textile remained unchanged at Re. 0.55 with 500 shares. Unilever Pak Limited closed at Rs 2340.00 without any change with 300 shares. Pak Petroleum remained unchanged at Rs 193.65 with 100 shares. Pak Datacom was the highest gainers and gained Rs 1.27 to close at Rs 48.97 while National Assets was the worst loser and lost Re. 0.05 to close at Re. 0.40.

Hasnain Asghar Ali of Aziz Fidahusein Securities said that with Indian reaction on Mumbai incident, blaming Pakistan and heightening tension with the country, and the disturbed law and order situation in the city has certainly added to the pressure being built to give a welcome to the bears as and when the local equity markets resume normal trading.

Keeping in view the negative developments, almost on all the fronts, economic, law and order and geo-political the prospective investors who were weighing options to invest at extreme discounts in the fundamentally strong stocks having a history of consistent pay outs, suddenly opted to stay indoors, thus leaving the desperate sellers searching for buyers.

Although the latest events, such as Indian reaction to Mumbai incident and deteriorating law and order situation in the city, have started to ease off, the latest events have, however, alerted the investors of the risk attached to investment in the local assets.