Market watch: Bull run on stock market out of steam near day-end

Benchmark KSE-100 index rises 55 points.

KARACHI:  The stock market managed to close upwards on Thursday mainly from yesterday’s momentum. However, the bull run on the bourse appeared running out of steam near the end of the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.24% or 55 points to end at 23,220.21 points.

“The market continued to move into the green though bullish momentum dissipated before the close causing the index to close well below its intraday high,” said Ovais Ahsan of JS Global Securities.

“MCB Bank (+3.4%) was the largest mover of the day in terms of index weight as it moved on excitement related to its intentions to make an overseas acquisition in Kenya. Fauji Fertilizer (+1.4%) gained on investors’ interest in high dividend plays while Nishat Mills (+2.4%) continued to rally on news of the European Union approving Pakistan for GSP Plus status. Millat Tractor +4.8% rallied on prospects of the company entering into an agreement with Massey Ferguson to export tractors to Afghanistan and some countries in Africa,” Ahsan added.



“With uncertainty prevailing regarding upcoming monetary policy announcement and strong technical resistance at 23,300-23,400 levels, locals used the opportunity to book profits, particularly ahead of a shorter next week,” said Muhammad Raza Rajwani of Elixir Securities.

“Textiles which had closed on upper price limits yesterday after the EU parliament approved GSP Plus status for Pakistan carried on the positive momentum. On the other hand financials and oils were relatively weak with only MCB Bank (+3.4%) generating interest from local and foreign investors despite stretched valuations on expectations of positive price movement post-monetary policy and on news of gaining footprint in African market,” Rajwani added.

Trade volumes fell to 147 million shares compared with Wednesday’s tally of 165 million shares.



Shares of 321 companies were traded on Thursday. At the end of the day 144 stocks closed higher, 152 declined while 25 remained unchanged. The value of shares traded during the day was Rs7.1 billion.

Jahangir Siddiqui and Company was the volume leader with 24.5 million shares gaining Rs0.48 to finish at Rs8.23. It was followed by Fauji Cement with 12.1 million shares gaining Rs0.02 to close at Rs11.94 and Pakistan Telecommunication Company Limited with 9 million shares losing Rs0.14 to close at Rs27.24.

Foreign institutional investors were net buyers of Rs379 million, according to data maintained by the National Clearing Company of Pakistan Limited.

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

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