Market watch: Despite absence of triggers, index bounces back

Benchmark KSE-100 index rises 343.26 points

KARACHI:

The index opened flat and traded thin volumes before rising sharply to recover Monday’s losses despite the absence of any major triggers.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 1.17% or 343.26 points to end at 29,726.39.

“Local institutional interest in index names ahead of the quarter close seemed to be the key to back chartists support near 29,350,” said Elixir Securities analyst Harris Ahmed Batla.

“Pak Electron (PAEL PA 2.95%) and Nishat Chunian Limited (NCL PA 4.95%) that lost 24% and 12%, respectively were the highlights of the day. Nishat Chunian hit its upper price limit intra-day along with Mari Petroleum (MARI PA), that recorded 63% growth in earnings year-on-year while declaring a 20% stock dividend.



“United Bank Limited (UBL PA 1.88%) and National Bank of Pakistan (NBP PA 4.62%) led volume charts on reported foreign buying.”

Meanwhile, JS Global analyst Ovais Ahsan said sentiments remained negative due to the hearing of a petition, challenging the prime minister’s legitimacy to hold office.



“The corrective mood of the market may continue with a possible short-term decline towards 28,850 on the cards,” said Ahsan.

Trade volumes slightly rose to 100 million shares compared to Monday’s tally of 90 million.

Shares of 375 companies were traded on Tuesday. Of these, 133 companies declined, 215 closed higher while 27 remained unchanged. The value of shares traded during the day was Rs6.2 billion.

Pak Elektron Limited was the volume leader with 8 million shares, gaining Rs0.89 to close at Rs27.19. It was followed by United Bank Limited with 4.8 million shares, gaining Rs3.47 to close at Rs188.34 and Nishat Chunian with 4.5 million shares, gaining Rs1.92 to close at Rs40.68.

Foreign institutional investors were net buyers of Rs338 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, October 1^st, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.