Market watch: Foreigners offload, but locals absorb selling pressure

Benchmark KSE-100 index rises 247.56 points

KARACHI: Foreigners continued to offload equity, but local investors seemed keen in absorbing the pressure as the index broke this week’s losing streak to end positive.

Amid anticipation of the US Fed Reserve increasing interest rates for the first time since 2006, investors treaded cautiously. However, Wednesday was a day when local investors remained attracted to specific stocks keeping in mind low valuations.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.79% or 247.56 points to end at 32,714.60 points.



Elixir Securities in its report said Pakistan equities recovered to close positive in a volatile session.

“Stocks opened positive taking cues from regional markets that surged ahead of much-anticipated US Federal Reserve’s meeting,” said the report.

“Gains were led by index heavy exploration and production that tracked higher global crude with PPL hitting the upper price limit on rumour of additional flows expected from Gambat South block after it announced gas discovery on Tuesday.

“Major sectors including cements, fertilisers and financials closed higher on reported local buying, while volume charts were dominated by small and mid-caps on retail driven activity.

“Auto player Pak Suzuki Motors (PSMC,+5%) traded at upper price limit on news of company giving written assurance to government over new car models and establishing a spare parts plant provided government give incentives to existing auto players,” said the report.

Meanwhile, JS Global analyst Arhum Ghous said the index closed higher following regional markets. “Major index movers were Oil and Gas Development Corporation (+1.5%), Fauji Fertilizer Company (+0.42%) and PPL (+5%),” said Ghous. “In the oil sector, PPL extended its previous day gains on news of discovery of 56mmcfd gas from its Hatim X-1 well.”



Trade volumes increased to 149 million shares compared with Tuesday’s tally of 146 million.

Shares of 328 companies were traded. At the end of the day, 183 stocks closed higher, 123 declined while 22 remained unchanged. The value of shares traded during the day was Rs7.7 billion.

Sui Northern Gas Pipelines Limited was the volume leader with 18.6 million shares, losing Rs1.03 to finish at Rs26.50. It was followed by TRG Pakistan Limited with 17.3 million shares, gaining Rs0.31 to close at Rs34.64 and K-Electric Limited with 12.8 million shares, gaining Rs0.13 to close at Rs7.63.

Foreign institutional investors were net sellers of Rs713 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 17^th, 2015.

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