Market watch: Index continues downward move

Benchmark KSE-100 index falls 255 points.


Our Correspondent April 29, 2014
Trade volumes fell to 175 million shares compared with Monday’s tally of 181 million. PHOTO: FILE

KARACHI: The index witnessed bearish activity amid institutional profit-taking following below expected earnings announcements in oil and fertiliser sectors.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.89% or 255.03 points to end at 28,436.59.

“Sentiment spoiler was Pakistan State Oil (PSO PA -1.3%), announcing lower than expected earnings for the quarter along with morning news of the company demanding the govt to release Rs150 billion to pay off its foreign suppliers,” said Harris Ahmed Batla of Elixir Securities.

“Moreover, an emergent board meeting called by DG Khan Cement (DGKC PA -1.7%) to discuss investment opportunities continued to worry investors with fears of breach of pricing arrangement between the cement manufactures, dragging cements plays down to the likes of Lucky Cement (LUCK PA -2.5%), Maple leaf Cement (MLCF PA -0.7%) and Fauji Cement (FCCL PA -1.6%).



“The said meeting by DG Khan Cement will set the tone for the remaining week; expect the index to remain volatile with interest in select names such as Bank Alfalah, Faysal Bank and Pakistan Telecommunication Company Limited,” he concluded.

Trade volumes fell to 175 million shares compared with Monday’s tally of 181 million.

Shares of 364 companies were traded on Tuesday. At the end of the day, 82 stocks closed higher, 265 declined while 17 remained unchanged. The value of shares traded during the day was Rs7.5 billion.



Lafarge Pakistan was the volume leader with 14.7 million shares, gaining Rs0.24 to finish at Rs13.56. It was followed by Fauji Cement with 8.3 million shares, losing Rs0.28 to close at Rs17.06 and Maple Leaf Cement with 7.9 million shares, losing Rs0.22 to close at Rs29.90.

Foreign institutional investors were net buyers of Rs168, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 30th, 2014.

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