Trade volumes rose to 121 million shares compared with Monday’s paltry tally of 88 million. PHOTO: FILE
Market managed to close in the black even though institutions continued to remain selective awaiting clarity on the budget.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.24% or 67.61 points to end at 28,486.71.
According to Naveen Yaseen of Elixir Securities, the trading session continued to disappoint on the back of low volumes but managed a close in green as bluechips showed signs of strength.
“Retail investors had limited participation on concerns of increase in Capital Gains Tax from coming fiscal year while institutions continue to remain selective, awaiting clarity on budget and flows from foreigners,” said Yaseen.
Banks witnessed profit-taking with United Bank Limited (UBL PA -0.84%) and Bank Alfalah (-0.22%), whereas oil names such as Pakistan Oilfields Limited (POL PA +0.81%) and Pakistan Petroleum Limited (PPL PA +1.02%) gained on reported local institutional buying.
“Defensive plays namely Hub Power Company Limited (HUBC PA +0.42%), Kohinoor Energy Limited (KOHE PA +0.74%) and Nishat Chunian Power Limited (NCPL PA +0.36%) held their ground while small caps such as Soneri Bank Limited (SNBL PA +4.26%), Byco Petroleum Pakistan Limited (BYCO PA +9.4%), Lafarge Pakistan Cement Limited (LPCL PA -1.4%) and Jahangir Siddiqui and Company Limited (JSCL PA -4.1%) continued to churn volumes.
“We expect the market to consolidate around a band of 2% as lack of immediate triggers and no substantial foreign flows on system persist,” concluded Yaseen, adding that the upcoming budget announcement will likely be positive for power and oil sector with Pakistan State Oil and Hubco remain attractive at current levels.
Trade volumes rose to 121 million shares compared with Monday’s paltry tally of 88 million.
Shares of 336 companies were traded on the Tuesday. At the end of the day, 116 stocks closed higher, 200 declined while 20 remained unchanged. The value of shares traded during the day was Rs6.1 billion.
Soneri Bank Limited was the volume leader with 10.1 million shares, gaining Rs0.58 to finish at Rs14.19 It was followed by Jahangir Siddiqui and Company Limited with 9.7 million shares, losing Rs0.48 to close at Rs11.22 and Lafarge Pakistan Cement Limited with 7.5 million shares, declining Rs0.20 to close at Rs13.49.
Foreign institutional investors were net buyers of Rs85 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, May 14th, 2014.
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