Market watch: Uncertainty keeps index in the red

Benchmark KSE-100 index falls 35.52 points.

KARACHI: The stock market closed in the red as the sale of UBL shares failed to attract sufficient interest at the bourse.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.12% or 35.52 points to end at 29,730.86

Elixir Securities Sibtain Mustafa said the KSE-100 index traded in a narrow range after it opened on a lacklustre note as a mix of politics and security debates within the country kept interest limited.



“Despite a healthy currency reserve number and successful divestment of government shareholding of UBL shares, the market failed to attract any sharp moves,” said Mustafa.

According to Mustafa, UBL (+2.8%) closed in the green with over 3.4 million shares exchanging hands as local investors bet over higher weightage in KSE-100 index due to increase in float and likely global index fund channeling more money into the stock.

Mustafa added that second and third tiers continued to churn higher volumes with retail participation in Bank of Punjab (BOP) +5.5% and Fauji Cement (FCCL) -2.6% dominating volume charts.

He concluded that the month’s long consolidation is still under way with KSE-100 index resilient on political and security issues.

“We continue to sight 33k to 34k post June as start of the result season along with successful completion of the first leg on the privatization front will keep local and foreign participation upbeat,” said Mustafa.

Meanwhile, JS Global analyst Syed Faran Rizvi noted that the textile sector, Gadoon Textile Mills and Gul Ahmed Textile Mill closed on their upper circuits following positive anticipations in the upcoming textile policy.

Rizvi added that Oil and Gas Development Cooperation closed in the red as the company will issue $850millon worth of Global Depositary Receipts (GDRs) in September 2014.

Trade volumes fell to 210 million shares compared with Thursday’s tally of 212 million shares.

Shares of 353 companies were traded on the last trading session of the week. At the end of the day, 145 stocks closed higher, 184 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.44 billion.

BOP was the volume leader with 27 million shares, gaining Rs0.50 to finish at Rs9.58. It was followed by Byco Petroleum with 17.7 million shares, declining Rs0.28 to close at Rs12.80 and FCCL with 12.1 million shares, declining Rs0.55 to close at Rs20.07.



Foreign institutional investors were net buyers of Rs455 million and net during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 14^th, 2014.

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