Market watch: Index’s downward slide continues for sixth straight session

Benchmark KSE-100 index drops 16.85 points

KARACHI: The index closed negative for the sixth consecutive session despite a positive open. Reports of foreign selling, however, dented the upward movement.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.06% or 16.85 points to end at 29,694.27.

Elixir Securities analyst Harris Ahmed Batla said the oil sector led the early rally but gains were smeared over reports of foreign selling in the broader market. “Concerns due to declining international oil prices dented Pakistan Petroleum (PPL PA -.9%) and Oil and Gas Development Company (OGDC PA -1%),” said Batla.

“Higher cement dispatches combined with falling coal prices rejuvenated buying interest in cements ahead of major earnings announcements with Maple Leaf Cement (MLCF PA +2.5%) leading volumes while Lucky Cement (LUCK PA +1%) also gained albeit thin volumes,” said Batla.



Meanwhile, JS Global analyst Ovais Ahsan said the biggest positive contributors to the index were United Bank Limited (+1.5%), Nestle (+2.5%) and National Foods (+4.3%).

“We recommend the investors to stick to fundamentally strong stocks as volatility remains high in the market. The banking and cement sector are our favoured sectors to cherry-pick from,” concluded Ahsan.

Trade volumes rose to 143 million shares compared to Monday’s tally of 126 million.

Shares of 402 companies were traded on Tuesday. Of these, 209 companies declined, 175 closed higher while 18 remained unchanged. The value of shares traded during the day was Rs6.2 billion.



Dewan Motors was the volume leader with 11.3 million shares, losing Rs0.49 to close at Rs10.09. It was followed by Maple Leaf Cement with 10.3 million shares, gaining Rs0.70 to close at Rs29.21 and Hira Textile with 7.3 million shares, gaining Rs0.94 to close at Rs13.22.

Foreign institutional investors were net sellers of Rs172 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 22^nd, 2014.

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