Market watch: Despite exciting book-building, index closes in red

Benchmark KSE-100 index falls 16.92 points.

KARACHI: The index started slow despite an exciting book-building of United Bank (UBL PA) -2.4% that brought an overwhelming response and was oversubscribed twofold with almost 80% participation from overseas investors.

However, the Karachi Stock Exchange’s (KSE) benchmark 100-share index still fell 0.06% or 16.92 points to end at 29,766.38.

“Rumours of reduction in recently-increased Gas Infrastructure Development Cess and government announcing a five-year textile policy of Rs8 billion next month kept investor interest alive,” said Naveen Yaseen of Elixir Securities.

“Textile names like Nishat Mills (NML PA) +1%, Nishat Chunian (NCL PA) +1% and Gadoon Textile (GADT PA +5%) performed well.



“Pakistan State Oil (PSO PA) -0.45% sustained levels despite of negative news as the government refused to allocate Rs300 billion for power sector receivables and is adamant on passing it to the consumers.

“Pakistan Telecommunication Company Limited (PTC PA) +0.3% traded volatile and witnessed intra-day profit-taking after near 12% gains in the last five trading sessions.

“We expect the market to trade volatile and test the 30k level in days ahead on earnings and PPL privatisation excitement. We reiterate our positive stance on financials with NBP, BAFL and HBL our picks,” Yaseen concluded.

Trade volumes fell to 212 million shares compared with Wednesday’s tally of 289 million shares.

Shares of 347 companies were traded on Thursday. At the end of the day, 158 stocks closed higher, 163 declined while 26 remained unchanged. The value of shares traded was Rs9.7 billion.



TRG Pakistan Limited was the volume leader with 22.05 million shares, losing Rs0.25 to finish at Rs16.13. It was followed by Byco Petroleum with 20.8 million shares, gaining Rs1 to close at Rs13.08 and Pakistan Telecommunication Company Limited with 15 million shares, gaining Rs0.10 to close at Rs31.06.

Foreign institutional investors were net sellers of Rs26 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 13^th, 2014.

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