Market watch: Index starts positively on first day of week

Benchmark KSE-100 index gains 70.26 points.

KARACHI: The index closed positive after morning gains due to excitement over optimism on ongoing peace efforts were countered by late selling.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.27% or 70.26 points to end at 25,853.54.

“Engro Corporation (ENGRO PA -3.3%) witnessed pressure with delays expected in Kunnar Pasaki deep gas project which effectively means that the urea plant of its fertiliser subsidiary may see more than expected gas shortage for the year,” said Fareesa Baig of Elixir Securities



Pakistan State Oil (PSO PA +1.44%) continued to gain after posting earnings way above expectations in the last trading session while financials attracted the most attention.

United Bank (UBL PA +1.5%), Habib Bank (HBL PA +2.8%) and Bank Al Habib (BAHL PA +2.25%) gained strength and closed in green over lower than expected Consumer Price Index inflation figures that clocked in at 7.93% against an expected 8.25%, indicating prospects of status quo in the upcoming monetary policy announcement due mid-march.

Bank Alfalah (BAFL PA -1.04%) announced 2013 earnings in line with expectations of Rs3.5 per share along with a cash dividend of Rs2 per share. However, it closed red on profit taking in the last few minutes before close.

National Bank (NBP PA -1.9%), on the other hand, proved to be a disappointment with its annual results clocking in much below estimates at Rs2.5, down 67% year-on-year along with a cash dividend of Rs2 per share.

“Market will continue to trade volatile and track flows, however, we see a lagged positive ride over better than estimated inflation reading mainly in financials with BAFL, BAHL, UBL and BIPL our picks in the sector,” concluded Fareesa Baig.



Meanwhile, Ovais Ahsan of JS Global Capital said that the exploration and production sector can play catch up in the coming days as global energy prices move northwards in tandem with tensions brewing in Ukraine; POL and PPL would be preferred plays.

Trade volumes rose to 241 million shares compared with Friday’s tally of 234 million.

Shares of 367 companies were traded on Monday. At the end of the day, 193 stocks closed higher, 159 declined while 15 remained unchanged. The value of shares traded during the day was Rs8.9 billion.

The Bank of Punjab (R) was the volume leader with 28.7 million shares, losing 0.17 to finish at Rs0.07. It was followed by Maple Leaf Cement with 22.4 million shares, gaining Rs1.39 to close at Rs30.58 and Japan Power with 13.9 shares, gaining Rs0.58 to close at Rs3.39.

Foreign institutional investors were net buyers of Rs214 million, according to data maintained by the National Clearing Company of Pakistan Limited. 

Published in The Express Tribune, March 4^th, 2014.

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