Market watch: Stocks fall as investors book profits

Benchmark KSE-100 index down 51.82 points.

KARACHI: The stock market experienced a volatile session and closed weaker as local institutions booked profits at new highs.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.20% or 51.82 points to end at 25,472.64 points.

Nestle (-3.6%) was a major loser as the fast moving consumer goods’ companies trading at high valuations of over 60 times the price-earnings ratio continued to correct.

Ovais Ahsan of JS Global Capital said Engro (-1.1%) reacted to news reports suggesting a ‘major scam’ relating to the concessionary gas price provided to its urea producing unit.



“Pakistan Telecommunication Company (-1.6%) lost ground on news that a stalemate prevailed in negotiations between Etisalat and the government over payment of $800m proceeds being withheld by the former on account of a dispute over certain property titles,” he said.

Resistance remained strong at the 25,700 level as the market struggled to close above the important technical level of 25,500, which could bring in a short corrective phase according to technical studies, Ahsan added.

Jawwad Aboobakar of Elixir Securities said the market closed below 25,500 as Pakistan Investment Bonds’ (PIB) yields came down slightly in Wednesday’s auction, signalling the status quo in the monetary policy due next month.

“Textile play Nishat Mills (+2.7%) traded against broader market direction and closed green on excitement over market access to Europe and phenomenal earnings expected in this quarter,” said Aboobakar.



Investors opted to book profits in cement shares after the recent sharp rally mainly in small and mid-caps. Retail players continued to churn volumes in Fauji Cement (-3%), Maple Leaf Cement (-1.9%), Bank of Punjab (-0.5%) and Jehangir Siddiqui (-1.5%).

Trade volumes fell to 255 million shares compared with Wednesday’s tally of 274 million shares.

Shares of 403 companies were traded. At the end of the day, 179 stocks closed higher, 207 declined and 17 remained unchanged. The value of shares traded during the day was Rs11.1 billion.

Fauji Cement was the volume leader with 18.5 million shares, losing Rs0.44 to finish at Rs14.21. It was followed by Nishat Mills with 14.3 million shares, gaining Rs3.26 to close at Rs125.85 and National Bank of Pakistan with 13 million shares, losing Rs1.22 to close at Rs58.23.

Foreign institutional investors were net buyers of Rs121 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 20^th, 2013.

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