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Investors prefer booking profits at equity market

Mixed activity was witnessed in overbought market as investors preferred booking profits in banks and fertilizer sectors while KSE 100-index shed minimal 4 points to close at 7,716.99 points on Monday.
Oil sector, however, remained in limelight as international oil prices shoot near to $70 and oil exploration/production companies were set to increase earnings by 15 percent in fiscal year 2008-09.
Moreover, cement sector showed positive performance on record exports and expectations of record result announcements this week.
The KSE 100-index opened with green numbers on the board, gaining 28.02 points and narrowly missed the opportunity to close the day in green zone. Index shed nominal 3.94 points to close the day closed at 7,716.99 points on Monday.
Trading activity was unhealthy as compared to the last trading session. The ready market volume decreased to 127.459 million shares as compared to last trading session’s 141.204 million shares. Total trading value of the market inched up to Rs 6.958b against Rs 6.10b of last session.
The Governor SBP denial regarding the cut in discount rate may turnout to be a sentiment changer. The market is more or less passing through a consolidation phase after nearly hitting the 8,000 mark. Consolidation before the 8,000 height may provide enough strength to crossover the said mark. Despite index closed below the previous day closing, most of the top ten volume leading stocks remained in green. Market capitalisation of the KSE remained Rs 2.277tr ($27.3b) as compared to Rs 2.278tr of last session. Out of 394 actively traded symbols at the market, at least 162 advanced, 215 declined while the value of the shares of 17 cos remained unchanged.
“We are still not sure whether we are passing through a consolidation phase or it is just a temporary hangover. Restoration of judiciary at November 3 level and prohibiting the PCO judges from their service may not make a huge difference to the market and to the general public of the country. To be very frank and honest, we need to focus on primary issues pertaining to present political and economical problems faced by the country”, expressed market expert Bilal Asif.

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