Market watch: Index consolidates, ends higher

Benchmark KSE-100 index increases 172.22 points

KARACHI: A day after it bounced back in emphatic fashion, the index sustained its ride in the black to close positive on Thursday.

Interest was seen in index heavy names such as fertiliser and cement while financials and oil remained on the sidelines.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.53% or 172.22 points to end at 32,565.14.

Elixir Securities report said Pakistan equities sustained momentum from Wednesday and ended higher. “Gains in fertiliser and cements outweighed losses in oils and financials barring Habib Bank (HBL, +3%),” said the report.  “Wednesday’s foreign institutional investors’ sale dented sentiment in early trade.”



However, the report added, names that generally see little foreign participation attracted interest as the day progressed despite reports of foreign selling in index names primarily in MCB Bank (MCB,-2.2%), Oil and Gas Development (OGDC,-1.4%) and United Bank Limited (UBL,-0.2%).

“Oils that tracked global crude closed the day lower with OGDC down mainly on talk of a possible large block on offer at a discount to market.

“Cements that tumbled along with wider market in previous few sessions continued their upward drive, while unofficial sales data for November suggests better than expected off-take from local buyers.”

Global Research, in its report, said that after an overwhelming session on Wednesday, the local bourse continued with the same momentum. “Index remained within a range of 340 points,” said the report. “Although the benchmark index’s movement paints an optimistic picture, dry volumes make investors sceptical about its performance going forward.”



Trade volumes fell to 119 million shares on Thursday compared with Wednesday’s tally of 192 million shares.

Shares of 347 companies were traded. At the end of the day, 164 stocks closed higher, 144 declined while 19 remained unchanged. The value of shares traded during the day was Rs7.2 billion.

TRG Pakistan Limited was the volume leader with 10.5 million shares, gaining Rs0.12 to finish at Rs36.34. It was followed by Pak Elektron with 7.1 million shares, gaining Rs0.50 to close at Rs63.52 and Sui Northern Gas Limited with 6.4 million shares, gaining Rs1.37 to close at Rs28.91.

Foreign institutional investors were net sellers of Rs229 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 4^th, 2015.

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