Market watch: Index breaks losing spell, ends shy of 30,000

Benchmark KSE-100 index rises 246.12 points

KARACHI: The index closed in the black, ending its six-day losing streak primarily triggered by positives on the political front as Pakistan Awami Tehreek (PAT) called off its 70-day long sit-in in Islamabad.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.83% or 246.12 points to end at 29,940.39.

“Investors cheered on hopes that despite PAT calling for nationwide protests and Pakistan Tehreek-e-Insaf continuing its sit-in in Islamabad, this move will help ease political tension,” said Elixir Securities Faisal Bilwani.



“KSE-100 index, pushed by oil stocks, tested 30,000 early while gains in MCB Bank (MCB PA +1.5%) and Engro Corporation (ENGRO PA +2.7%) helped counter profit-taking.

“Maple Leaf Cement (MLCF PA -0.7%) announced lower than estimated first-quarterly earnings and led volumes and ended the day lower.

“We see the benchmark to test 30,000 and trade volatile with investors’ focus on profits and payouts during earnings season,” Bilwani said.  “The market will remain sensitive to flows from foreigners and news flow of over politics in days ahead and we advise buying value plays (NML, UBL, DGKC, ENGRO, PPL and LUCK) and booking gains in illiquids,” he concluded.

Trade volumes rose to 172 million shares compared to Monday’s tally of 143 million.

Shares of 391 companies were traded on Wednesday. Of these, 140 companies declined, 231 closed higher while 20 remained unchanged. The value of shares traded during the day was Rs8.1 billion.

Maple Lead Cement was the volume leader with 29 million shares, losing Rs0.20 to close at Rs29.01. It was followed by the Bank of Punjab with 14.4 million shares, gaining Rs0.39 to close at Rs8.7 and Pak Elektron with 8.2 million shares, gaining Rs1.14 to close at Rs27.14.



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 23^rd, 2014.

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