Market watch: As holidays close in, index remains subdued
Benchmark KSE-100 index falls 17.88 points
Benchmark KSE-100 index falls 17.88 points.
KARACHI:
Pakistan equities endured a topsy-turvy day amid thin participation as the benchmark-100 index traded in a range of 220 points.
A strong buying period was followed by bears taking over before one more round was played. However, there was little support as the index ended marginally negative as volumes fell to 78 million shares.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.05% or 17.88 points to end at 32,641.09.
Elixir Securities, in its report, said stocks opened positive led by gains in index heavy oils on slight recovery in international crude, while Habib Bank (HBL PA -0.46%) that shed nearly 10% in last two trading sessions also landed support to benchmark index in early trade.
“Positive contribution also came from Engro Corporation (ENGRO PA +1.43%) that gained on news of expected continuation of concessionary gas supply to its subsidiary Engro Fertilizer (EFERT PA +1.66%).
“Activity in the wider market, however, remained on the lower side, and as the day progressed market succumbed to selling pressure with all its intra-day gain wiped out by day’s close,” said the report.
“Tuesday’s highlight was technology play NETSOL Technologies (NETSOL PA +5%) that hit upper price limit at market open on news of company signing a $100 million contract to implement its software solution across 12 markets in Asia and Africa,” it added.
Meanwhile, JS Global analyst Arhum Ghous said the market failed to sustain momentum as selling pressure mounted during the later hours of the day mainly on account of on-going futures roll-over week.
“Strong activity was observed in index heavyweights like Fauji Fertilizer Company (FFC -1.13%) amidst anticipation of further gas price hike and Oil and Gas Development Company (OGDC +0.58%) with value buyers jumping back in.
“We expect the index to remain under pressure for Wednesday’s session, as it will be the last day of future roll over week before the long weekend,” said Ghous.
Trade volumes fell to 78 million shares compared with Monday’s tally of 90 million.
Shares of 325 companies were traded. At the end of the day, 130 stocks closed higher, 170 declined and 25 remained unchanged. The value of shares traded during the day was Rs5.8 billion.
TRG Pakistan Limited was the volume leader with 4.8 million shares, losing Rs0.10 to finish at Rs33.89. It was followed by Pak Elektron with 3.6 million shares, gaining Rs0.07 to close at Rs66.93 and Fauji Fertilizer with 3.4 million shares, losing Rs1.27 to close at Rs111.19.
Foreign institutional investors were net sellers of Rs202 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 23rd, 2015.
Pakistan equities endured a topsy-turvy day amid thin participation as the benchmark-100 index traded in a range of 220 points.
A strong buying period was followed by bears taking over before one more round was played. However, there was little support as the index ended marginally negative as volumes fell to 78 million shares.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.05% or 17.88 points to end at 32,641.09.
Elixir Securities, in its report, said stocks opened positive led by gains in index heavy oils on slight recovery in international crude, while Habib Bank (HBL PA -0.46%) that shed nearly 10% in last two trading sessions also landed support to benchmark index in early trade.
“Positive contribution also came from Engro Corporation (ENGRO PA +1.43%) that gained on news of expected continuation of concessionary gas supply to its subsidiary Engro Fertilizer (EFERT PA +1.66%).
“Activity in the wider market, however, remained on the lower side, and as the day progressed market succumbed to selling pressure with all its intra-day gain wiped out by day’s close,” said the report.
“Tuesday’s highlight was technology play NETSOL Technologies (NETSOL PA +5%) that hit upper price limit at market open on news of company signing a $100 million contract to implement its software solution across 12 markets in Asia and Africa,” it added.
Meanwhile, JS Global analyst Arhum Ghous said the market failed to sustain momentum as selling pressure mounted during the later hours of the day mainly on account of on-going futures roll-over week.
“Strong activity was observed in index heavyweights like Fauji Fertilizer Company (FFC -1.13%) amidst anticipation of further gas price hike and Oil and Gas Development Company (OGDC +0.58%) with value buyers jumping back in.
“We expect the index to remain under pressure for Wednesday’s session, as it will be the last day of future roll over week before the long weekend,” said Ghous.
Trade volumes fell to 78 million shares compared with Monday’s tally of 90 million.
Shares of 325 companies were traded. At the end of the day, 130 stocks closed higher, 170 declined and 25 remained unchanged. The value of shares traded during the day was Rs5.8 billion.
TRG Pakistan Limited was the volume leader with 4.8 million shares, losing Rs0.10 to finish at Rs33.89. It was followed by Pak Elektron with 3.6 million shares, gaining Rs0.07 to close at Rs66.93 and Fauji Fertilizer with 3.4 million shares, losing Rs1.27 to close at Rs111.19.
Foreign institutional investors were net sellers of Rs202 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, December 23rd, 2015.