Market watch: Index feels the heat as panic envelopes investors

Benchmark KSE-100 index falls 42.02 points.

KARACHI: Pakistan equities felt the tension in the city as the Karachi Stock Exchange (KSE)-100 index nosedived around 300 points intra-day as news of an attack on a member of the National Assembly, belonging to the Muttahida Qaumi Movement, gripped the market.

Despite a positive start that saw the index touch 35,762, panic sellers were quick to react to the news. Within minutes, the rise got marginalised before a recovery ensured the market ended slightly in the red.

At close, the Karachi Stock Exchange (KSE-100) index fell 0.12% or 42.02 points to end at 35,546.03.



According to Elixir Securities analyst Faisal Bilwani, stocks recovered on clarity with wider market closing the day little changed.

“Engro Corp (ENGRO PA’s +0.4%) 1H announcement in last hour of trading kept the already volatile stock in the limelight, while its food subsidiary (EFOODS PA +2.6%) hit upper lock intraday on reported foreign buying.

“We expect stocks to find a new narrow trading band here with the end of the month anxiety owing to futures rollover in days ahead to limit retail activity in small and mid-caps, while index names will continue to track flows,” he added.

Meanwhile, JS Global analyst Ahmad Saeed Khan said the day opened on a positive note.

“Market came under pressure soon after mid-day on news of the MQM MNA being shot and critically injured.

“Positivity in the first half was led by the Auto and the Pharmaceutical sectors, with major gainers being SEARL (+3.1%), ABOT (+0.9%) and INDU (+0.5%),” said Khan.



“Bullish momentum was witnessed in the cement sector as international coal prices dropped to a seven-year low.”

Trade volumes fell to 277 million shares compared with Monday’s tally of 347 million shares.

Shares of 385 companies were traded on Tuesday. At the end of the day, 145 stocks closed higher, 215 declined while 25 remained unchanged. The value of shares traded during the day was Rs12.7 billion.

K-Electric Limited was the volume leader with 41.2 million shares losing Rs0.01 to finish at Rs8.52. It was followed by Pace Pakistan Limited with 12.8 million shares, losing Rs0.06 to close at Rs7.30 and Dewan Cement with 12.7 million shares, gaining Rs0.20 to close at Rs14.40.

Foreign institutional investors were net sellers of Rs802 million during the session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, August 19^th, 2015.

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