Market watch: Index weighed down as investors remain on the sidelines

Benchmark KSE-100 index falls 140.34 points

KARACHI: Gains of regional markets and increase in the price of global crude did little to help the benchmark-100 index as the upcoming holidays meant investors opted to remain on the sidelines and book whatever profit came along their way.

At close on Wednesday, the last trading session before operations resume on Monday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.43% or 140.34 points to end at 32,500.75



Elixir Securities, in its report, said foreign investors opted to adopt selling positions in the fertiliser and financial sectors, weighing the index down.

“Bulk of the activity was limited to retail-driven small and mid-caps that dominated the volume charts.

“Sui Southern Gas Company (SSGC PA -4.1%) and Sui Northern Gas Pipeline Limited (SNGP PA -4.38%) both ended the day near their lower price limits after OGRA chairman denied any increase in gas prices yesterday evening,” the report said.

“We see activity to pick up pace post-holidays with index names likely attracting fresh flows on excitement on earnings and pay-outs as we enter earnings season,” it added.

Meanwhile, JS Global analyst Arhum Ghous said the KSE-100 index, after recording gains in early hours of the trade, came under selling pressure mainly on account of futures’ contract settlement and roll-over by investors



“Index heavyweight Habib Bank Limited (HBL +1.33%) and Oil and Gas Development Company (OGDC +0.15%) recorded gains as value investors jumped back in to accumulate positions.

“Attock Refinery Limited (ATRL +2.42%) and Byco Petroleum (BYCO +0.73%) also posted gains on account of newspaper reports suggesting that the Minister of Petroleum and Natural Resources (MPNR) has forwarded a proposal to provide the local refineries two more years to upgrade their plants,” informed Ghous.

“NETSOL (+4.99%) also continued its upward trajectory as the technology company continued to attract investors’ interest post announcement of securing a $100-million contract,” he added.

Trade volumes rose to 104 million shares compared with Tuesday’s tally of 78 million.

Shares of 335 companies were traded. At the end of the day, 119 stocks closed higher, 196 declined and 20 remained unchanged. The value of shares traded during the day was Rs6.9 billion.

Jahangir Siddiqui and Company was the volume leader with 10.1 million shares, gaining Rs1 to finish at Rs20.06. It was followed by Habib Bank Limited with 5.9 million shares, gaining Rs2.65 to close at Rs201.80 and Sui Northern Gas Pipeline Limited with 5.5 million shares, losing Rs1.14 to close at Rs24.90.

Foreign institutional investors were net sellers of Rs46.3 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 24^th, 2015.

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