Market watch: Index falls to correction

Benchmark KSE-100 index goes down 16.87 points.

KARACHI: Stocks opened positive and seemed to be on track to cover most of the losses on respite in regional markets and in absence of foreigner’s participation in dumping shares. However, limited institutional participation and sell-calls by chartist wiped most of the morning gains.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.06% or 16.87 points to end at 26,653.73.

“Pakistan equities closed marginally negative as losses in index heavy Oil and Gas Development Company (OGDC PA -0.7%) countered excitement in illiquid consumer plays,” said Faisal Bilwani of Elixir Securities.



“Financials witnessed profit booking, whereas cements traded on a mixed note with Lucky Cement (LUCK PA -1.4%) continuing with the bearish momentum and closing in the red.

“Engro Corp (ENGRO PA +0.6%) broke the bear spell and marginally recovered on cautious institutional interest as gains in fertiliser subsidiary (EFERT PA +47.6% since listing on Jan 17) fuelled interest in parent-holding play.

“Lotte Chemical announced 2013 at loss per share of Rs0.33 with fourth quarter loss per share at Rs0.42. At last closing price, the stock offered 13% downside to our Dec 14 PT of Rs6.8/share. We maintained a sell stance on the stock,” he said.

“News flow from the on-going Pakistan and US strategic dialogue and excitement over earnings and payouts will keep interest alive in select names while broader market will likely continue to track flows and moves in regional markets,” Bilwani concluded.

Trade volumes rose to 303 million shares compared with Monday’s tally of 230 million.

Shares of 415 companies were traded on Tuesday. At the end of the day, 233 stocks closed higher, 167 declined while 15 remained unchanged. The value of shares traded during the day was Rs7.6 billion.



Azgard Nine was the volume leader with 48.4 million shares, gaining Rs0.68 to finish at Rs9.83. It was followed by Jahangir Siddiqui and Company with 22.4 million shares, gaining Rs1.00 to close at Rs12.53. and JS Investments with 14.0 million shares, gaining Rs0.15 to close at Rs13.55.

Foreign institutional investors were net sellers of Rs295 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 29^th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.