Market watch: Index trades volatile on first fiscal day

Benchmark KSE-100 index rises 49.05 points.

KARACHI: The index traded volatile on the first day of the new fiscal year with gains on reported institutional buying which were later countered by profit-taking. 

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.17% or 49.05 points to end at 29,701.58.

Elixir Securities analyst Faisal Bilwani said inflation reading at 8.22% year-on-year for June 2014 was lower than consensus 8.6%. “However, it failed to excite the broader market on a day that closed late by an hour to compensate for a delayed start due to technical issues.



“News of increase in GIDC for Engro Fertilizers (EFERT PA -1.75%) new plant and Fatima Fertilizers (FATIMA PA -3.34%) kept the sector under pressure, however, Fauji Fertilizer (FFC PA +0.34%) traded volatile and tested new recent intra-day highs to settle marginally positive.

“The government’s bandage solution by releasing Rs39.7 billion to ease energy sector debt and ensure smooth power supply during the month of Ramadan kept energy chain in the limelight with Pakistan State Oil (PSO PA +1.09%) closing green.

“We see stocks to trade volatile with volumes to increase on local participation in the coming days as earnings excitement will channel fresh flows. Foreign flows will help settle the broader market direction and we favour staying long in NBP, BAFL, DGKC, PSO, HUBC, NCPL, NML, EFOODS and KEL,” Bilwani concluded.

Trade volumes declined to 90 million shares compared with Monday’s tally of 156 million.

Shares of 293 companies were traded on Tuesday. At the end of the day, 146 stocks closed higher, 121 declined while 26 remained unchanged. The value of shares traded during the day was Rs6.9 billion.



Byco Petroleum was the volume leader with 7.6 million shares, losing Rs0.47 to finish at Rs10.93. It was followed by Fauji Fertilizers with 7 million shares, gaining Rs0.38 to close at Rs112.63 and Engro Corporation with 5.6 million shares, losing Rs4.77 to close at Rs.173.74

Foreign institutional investors were net buyers of Rs489 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 2^nd, 2014.

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