Market watch: KSE recovers after massive midday drop

Benchmark KSE-100 index rises 17 points.


Our Correspondent October 10, 2013
At the end of the day 119 stocks closed higher, 173 declined while 20 remained unchanged. PHOTO: REUTERS/FILE

KARACHI: The stock market managed to recover, ending barely above its opening position, after dipping to 21,476 near mid-day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.08% or 17.76 points to end at 21,674.98 points. After a massive drop of nearly 200 points, the bourse managed to regain its losses.

“The market saw a limited bounce back as value buying in Fauji Fertilizer Company (+1.0%), United Bank Limited (+1.7%), Pakistan Telecommunication Company Limited (+2.1%) and ENGRO (+1.6%) drove the index in the green after a volatile session,” said Ovais Ahsan of JS Global.



“Volumes remained on the lower side as day traders mostly remained on the sidelines ahead of the long holidays coming next week while institutions did some cherry picking in selected stocks. Participants remained cautiously bullish while expectations of inflow of $300 million under the coalition support fund expected this month invited buying interest,” Ahsan added.

Trade volumes fell to 98 million shares compared with Wednesday’s tally of 123 million shares.

Shares of 312 companies were traded on Thursday. At the end of the day 119 stocks closed higher, 173 declined while 20 remained unchanged. The value of shares traded during the day was Rs3 billion.



Pak Elektron Limited was the volume leader with 7.3 million shares losing Rs0.82 to finish at Rs2.64. It was followed by Pakistan Telecommunication Limited with 6.4 million shares gaining Rs0.52 to close at Rs25.88 and Bank of Punjab with 6.3 million shares losing Rs0.12 to close at Rs10.19.

Foreign institutional investors were net buyers of Rs76 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Investors remained cautious, and will likely continue as such until after the Eid holidays. The stock exchange has been witnessing low volumes as the bulls have little news to ride on.

Published in The Express Tribune, October 11th, 2013.

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