Market watch: Volumes remain low as index ends in the red

Benchmark KSE-100 drops 275.75 points.


Our Correspondent August 26, 2014

KARACHI: Investors continued to exercise caution as political deadlock between the opposition and the government continued. Volumes remained low with the index continuing its decline south.

At the end, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.97% or 275.75 points to end at 28,243.59.

Elixir Securities Faisal Bilwani said investors remained confused and concerned over the ongoing sit-ins, and hoped for an early resolution.

“Despite the drama, market was selectively sensitive to fundamentals as Fauji Fertiliser (FFC) PA +1.8% closed positive and generated volumes ($3.3 million) on the court’s decision calling Gas Infrastructure Development Cess unconstitutional (FFBL, FFC, EFERT to benefit while FATIMA loses out).”



“Moreover, Lucky Cement (LUCK) PA -4.8% continued to remain out of favour, and has lost more than 8.5% over the last three days.”

“With a 48-hour deadline by cleric leading PAT demanding expiring midnight, investors will track developments in Islamabad and hope for a peaceful resolution to the crisis.”

JS Global analyst Mujtaba Barakzai said major decliners were RMPL (-0.9%), COLG (-4.9%) and NESTLE (-0.7%). “Investors preferred dividend plays as FFC (+1.8%) rallied on rumours of company’s management buying shares to cope up 34% cash dividend earlier,” said Barakzai.

Trade volumes decreased to 76 million shares compared with Monday’s tally of 82 million.

Shares of 330 companies were traded on Tuesday. Share prices of 239 companies declined, 73 closed higher while 18 remained unchanged. The value of shares traded during the day was Rs4.6 billion.

Pakistan Elektron Limited was the volume leader with 8.2 million shares, losing Rs1.26 to close at Rs29.54. It was followed by Lafarge Pakistan with 5.7 million shares, gaining Rs0.02 to close at Rs15.07 and the Bank of Punjab with 4 million shares, declining Rs0.05 to close at Rs7.95.



Foreign institutional investors were net sellers of Rs87 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 27th, 2014.

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COMMENTS (1)

Ranjha | 9 years ago | Reply

I went to bed last night with Rs. 200 in my pocket and woke up this morning with the exact same amount. Who cares what the KSE casino did yesterday, today or will do tomorrow? It has ABSOLUTELY NO IMPACT on the livelihood of ordinary people of Pakistan--it is only the corrupt who use this money laundering machine to increase their ill gotten wealth who are feeling the pain!

Full speed ahead Imran!

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