Market watch: Index closes in the red as caution prevails

Benchmark KSE-100 index falls 79.82 points.

KARACHI: The index traded range bound to settle in the red as investors remained selective and cautious as the Pakistan Army begins operation in North Waziristan.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.27% or 79.82 points to end at 29,651.04.



“Volumes were thin in the broader market; 46% lower than last week’s average, with even small caps not seeing major excitement as retail investors too felt the anxiety,” said Fareesa Baig of Elixir Securities.

“Contrary to market direction, Pakistan Oilfields (POL PA +1.13%) inched up as benchmark Persian Gulf Crude sees +3.8% gain in last four days owing to troubles in Middle East.

“Punjab provincial budget did bring some respite as higher allocation for development projects helped cements with DG Khan Cement (DGKC PA +1.45%) and Fauji Cement (FCCL PA +1.84%), latter leading volumes charts.

“Moreover, provincial scheme for taxis at subsidised rates pushed auto-makers higher with Pak Suzuki (PSMC PA +5%) hitting the upper price limit,” she said.

Meanwhile, JS Global Ovais Ahsan said the market closed in the negative zone on lower volumes as caution prevailed in the wake of the all-out military campaign officially launched in North Waziristan region.

“UBL Bank +0.9% continued to attract buyers as the successful book building of its secondary offering boosted investor confidence in the bank’s future prospects,” he said.

Trade volumes fell to 129 million shares compared with Friday’s tally of 210 million shares.

Shares of 344 companies were traded on Monday. At the end of the day, 86 stocks closed higher, 227 declined while 31 remained unchanged. The value of shares traded during the day was Rs6.8 billion.



Fauji Cement was the volume leader with 10.4 million shares, gaining Rs0.37 to finish at Rs20.44. It was followed by Quice Food with 8.1 million shares, losing Rs0.01 to close at Rs8.56 and the Bank of Punjab with 6.6 million shares, losing Rs0.21 to close at Rs9.37.

Foreign institutional investors were net buyers of Rs252 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 17^th, 2014.

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