Market watch: Stocks post modest gains after volatile trading

Benchmark KSE-100 index rises 68.2 points.

KARACHI: The stock index ended the day with moderate gains after slipping into the negative territory in the wake of volatile law and order situation in the city.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.23% or 68.20 points to end at 29,540.72 on Tuesday.

Elixir Securities analyst Jawwad Aboobakar said equities opened positive and traded volatile in absence of major news or triggers amid concerns over law and order in the metropolis.



“Cement shares traded volatile, however, Lucky Cement (+5%) managed to close at its upper price limit as investors were hopeful about another year with stellar earnings and hefty payouts,” he said.

“Moreover, oil names mainly Pakistan State Oil (+1.35%) and Pakistan Oilfields Limited (+1.19%) attracted attention over news of government’s decision to pass on the impact of loans taken by power distribution companies to the consumers.”

National Bank of Pakistan (+1.2%) traded nearly 13 million shares while about nine million changed hands off-market on reported foreigner buying, Aboobakar said.

United Bank Limited (-1.2%) closed in the red ahead of share offload in a book-building process on Wednesday.

“UBL book-building could be the highlight of trading on Wednesday while the broader market will continue to track flows with locals keeping a close watch on law and order and its implications for foreign investor participation in equities,” he said.

Trade volumes rose to 232 million shares compared with Monday’s tally of 132 million.



Shares of 361 companies were traded during the day. At the end, 165 stocks closed higher, 165 declined while 31 remained unchanged. The value of shares traded was Rs11 billion.

K-Electric was the volume leader with 32.5 million shares, gaining Rs0.59 to finish at Rs8.86. It was followed by Fauji Cement Company Limited with 15.8 million shares, gaining Rs0.39 to close at Rs20.72 and Sui Northern Gas Pipelines Limited with 14.9 million shares, gaining Rs1.04 to close at Rs24.04.

Foreign institutional investors were net buyers of Rs623 million worth of shares during the trade session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 11^th, 2014.

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