Karachi: The stock market remained range-bound on Wednesday, as the KSE-100 index declined marginally for the second day by 34.30 points (0.10 per cent) to close at 34,482.
Investors continued to trim their positions amid uncertainty over increasing political noise. Foreign investors returned to pick up shares worth $6.07 million after profit-taking a day earlier, with inflow of $3.6m in fertiliser sector.
Traded volume stood at 540m shares higher than 525m shares a day earlier, but the value amounted to about the same at Rs15.8 billion, representing major activity in second- and third-tier stocks.
Samar Iqbal, VP Equity sales at Topline Securities, commented that the Moody’s rating upgrade of top five banks did not help lift investor sentiments.
Amid improved earnings expectations ahead of FY15 result, K-Electric remained dominant among the volume leaders with 144m shares, taking its average volume to a huge 160m shares in last three sessions. Cherry picking was seen in Engro Corp, Engro Foods and Engro Fertilisers, which saw their stock price increase by 0.9pc, 0.4pc and 1.5pc, respectively.
Analyst Ahsan Mehanti at Arif Habib Corp stated that concerns over the impact of IMF focused structural reforms in taxation and energy sector, political uncertainty and consolidation ahead of new tax slabs applicable on capital gains next month were major reasons for the bearish sentiments.
PSO and POL were up by 0.54pc and 0.17pc while HASCOL, OGDC and PPL ended lower by 0.36pc, 0.33pc and 0.44pc. Power and distribution sector remained in the limelight with trading in 168m shares, followed by investment banks sector 52.52m shares and cement sector 48m shares.
SSGC and SNGP ended 1.5pc and 2.3pc higher. In auto sector, AGTL, MTL, PSMC and GHNL shed 2.2pc, 0.4pc, 0.9pc and 3pc.
