Market watch: Index continues to consolidate ahead of elections

Lack of major triggers made for a dullish close to the session.

KARACHI: The second trading session of the week ended on a dullish note, with the market continuing to consolidate ahead of the elections in the absence of any significant trigger, analysts said. Selling by state institutions the day before had kept most buyers at bay; however, institutional support was witnessed in the oil and banking sectors during the session, which was responsible for most of the day’s gains.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index had gained a modest 0.03% or 6.04 points by the close of the session to end at the 19,262.74 points level. Trade volumes surged to 173 million shares, compared with Monday’s tally of 137 million shares. The value of shares traded during the day was Rs5.28 billion.

“[A] mid-day recovery in MCB Bank and Engro Corp brought in excitement, while oil stocks further supported momentum with the Oil and Gas Development Company and Pakistan Petroleum edging up on local institutional buying,” reported Elixir Securities analyst Sibtain Mustafa.

“Renewed buying interest was seen in Fauji Cement, amid expectations of better earnings due to a debt swap,” reported Samar Iqbal, Topline Securities’ senior manager equity sales.

“The picture remained gloomy and shaky ahead of the coming elections on the political front,” said JS Global Capital analyst Veer Bajaj. “Value buying was observed in banking and insurance sectors, with MCB, United Bank, Soneri Bank, National Bank and Adamjee Insurance being investors’ picks.”

Shares of 371 companies were traded on Tuesday. At the end of the day, 126 stocks closed higher, 196 declined, while 49 remained unchanged. Fauji Cement was the volume leader with 61.97 million shares, gaining Rs0.93 to finish at Rs9.94. It was followed by TRG Pakistan with 11.18 million shares, losing Rs0.26 to close at Rs9.68; and Jahangir Siddiqui and Company with 6.46 million shares, losing Rs0.54 to close at Rs10.48.

“The broader market continued to trade lacklustre, with Fauji Cement alone accounting for over 44% of the total volume,” added Mustafa.

Foreign institutional investors were net buyers of Rs752.87 million worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 8^th, 2013.

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