Market watch: With no news triggers, investors stay on sidelines

Benchmark KSE-100 index falls 31.39 points.

KARACHI:

Trading on the stock market remained lacklustre on Tuesday and the bourse traded negative for most part of the day as investors, primarily locals, preferred to stay on the sidelines and showed no interest in the absence of any news triggers.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.11% or 31.39 points to end at 29,497.57.

According to Elixir Securities analyst Fareesa Baig, Oil and Gas Development Company (OGDC -0.1%) saw unusual volumes over reported foreigner buying while financial companies, particularly National Bank (NBP +1.08%) and MCB Bank (MCB +0.2%) gained on institutional interest albeit thin volumes.



“Cement companies led volumes on retail participation with Lafarge Cement (LPCL +1.6%) topping the charts over speculation with respect to the acquisition price, while other small and mid-cap cement names saw interest over expectations from the upcoming earnings announcement.

“Despite the recent volumes trend and dismal activity, we remain optimistic and continue to advise staying long in NBP, Bank Alfalah, DG Khan Cement, PSO, Hubco, Nishat Chunian Power, Nishat Mills, Engro Foods and K-Electric.”

Meanwhile, analyst Fahad M Ali of JS Global said, “we expect the market to consolidate at these levels and one should be a buyer into dips.”

Trade volumes dipped to 20 million shares compared with Monday’s tally of 77 million.



Shares of 296 companies were traded. At the end of the day, 127 stocks closed higher, 144 declined while 25 remained unchanged. The value of shares traded during the day was Rs2.9 billion.

Lafarge Pakistan was the volume leader with 10.3 million shares, gaining Rs0.26 to finish at Rs16.30. It was followed by Fauji Cement with six million shares, gaining Rs0.06 to close at Rs19.58 and Pakistan International Airlines Corporation with 2.4 million shares, gaining Rs0.20 to close at Rs7.12.

Foreign institutional investors were net sellers of Rs233 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 9^th, 2014.

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