Modest volume keeps stock market unchanged

LAHORE - The first and last day of business week activity on Friday after Eidul Azha holidays, volume again remained modest and business activities in Karachi Stock Exchange (KSE) kept on unimpressive, dull and flat throughout the day while SECP directives to remove floor on December 15 could not spur the market and benchmark KSE 100-index witnessing no change closed at 9,187.10 points
The market capitalisation was eroded by Rs 8.542 million to Rs 2.808 trillion.
Analyst of a leading brokerage house said that trading volume was down again due to lack of interest coupled with the fear of lifting of price flouring.
It is pertinent to note that the Securities and Exchange Commission of Pakistan (SECP) Thursday directed all local bourses to lift the floor price levels with effective from December 15, 2008.
According to a report published in these columns, the authorities of SECP further said that during the past three months, stock exchanges had imposed floor price levels. Despite best efforts, the market support fund and other instruments like 'put option' could not be brought into operations so as to provide a soft lending, the matter has been considered thoroughly by the Commission and it found no reason that the floor level as imposed will continue. In this regard, The SECP has decided to restore the normal functioning of the stock exchanges.
Earlier Board of Directors of Karachi Stock Exchange, decided to place a floor on closing prices of securities effective vide notice No. KSE/N-5061 dated August 27, 2008 owing to save the investors and brokers to bear further losses. The fact is that continuing restriction on the trade prices of the securities has adversely affected the ability of the market participants to manage their respective investments and is in the public interest to allow the securities markets to function without any hindrance in order to maintain the confidence of the investors.
National Assets was remained leader volumewise on Friday trading while in KSE business, five scrips recorded gains, no scrip sustained losses and two remained unchanged out of a total of only seven companies. National Assets scrip led the market with a turnover of 39,500 shares.
National Assets scrip landed in the advance column though gain a meagre value of Re 0.01 closed at Re 0.41 followed by Saritow Sp. gaining Re 0.14 closed at Rs 1.50 with volume of 6,000 shares while Pak PTA Ltd remained unchanged closed at Rs 3.18 with volume of 5,000 shares. Habib ADM Ltd also gained its value of Re 0.75 closed at Rs 10.44 with volume of 2,000 shares. Whereas JOV and Com remained unchanged closed at Rs 21.12 with volume of 2,000 shares. UDL Mod also gained its value of Re 0.01 closed at Rs 3.07 while Textila Engg also fall into advance column and gained maximum value compare to rest of the scrips of Rs 1.00 closed at Rs 5.40 with volume of 500 shares traded.
Meanwhile, the KSE-30 index dipped down and lost 26.77 points and closed at 9928.33 points while KMI-30 index with no change closed at 11224.18 points.
While, Lahore Stock market remained unchanged as LSE-25 index closed at 2825.36 points.
The turnover of LSE-25 on Friday witnessed 4,300 shares were traded. Out of 74 scrips, no scrip could gain any value nor lost value while two companies traded and remained unchanged. ZELP scrip remained unchanged closed at Rs 1.16 with volume of 4,000 shares while PAEL scrip also remained unchanged closed at Rs 36.00 with volume of 300 shares traded.