Market watch: Index ends marginally positive over low activity

Benchmark KSE-100 index rises 13.14 points

KARACHI: Pakistan equities closed little changed amid lacklustre and directionless trading as investors remained on the sidelines.

Activity in the wider market dropped as the year drew to a close, with only 44 million worth of shares exchanging hands on the benchmark-100 index.

At close on Wednesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose just 0.04% or 13.14 points to end at 32,825.03.



Elixir Securities, in its report, said interest remained limited to small and mid-caps that dominated the volume charts.

“Karachi Electric (KEL, 1.79%) gained 1% after it notified the exchange of its interest in the bidding process of a power distribution company, while Pak Elektron (PAEL, -4.89%) closed near the lower price limit on rumour of right shares announcement in its upcoming board meeting,” said the report.

“Pakistan State Oil (PSO, -0.83%) also struggled after rumour of it becoming non-sharia compliant, which spooked participants who feared it could trigger selling by Islamic funds.

“We expect market to trade volatile and lacklustre amid thin participation as we head into year-end,” the report added.

Meanwhile, JS Global analyst Arhum Ghous said volatility prevailed in Wednesday’s session, as the KSE-100 index juggled between the red and the green zone.

“In the oil sector, Mari Petroleum gained 3.02% on the back of news that the company is expected to receive higher price for its new discoveries under the 2012 Petroleum Policy,” Ghous added.



“Pak Elektron Limited continued its downward journey on rumours of a potential right issue announcement in its board meeting scheduled on January 4, 2016.

“We expect volatility to prevail in the market. Cements and fertilisers are our preferred sectors for the week,” remarked Ghous. Trade volumes fell to 79 million shares compared with Tuesday’s tally of 144 million shares.

Shares of 326 companies were traded. At the end of the day, 147 stocks closed higher, 147 declined while 15 remained unchanged. The value of shares traded during the day was Rs5.1 billion.

TRG Pakistan Limited was the volume leader with 8.9 million shares, gaining Rs0.08 to finish at Rs35.09. It was followed by Pak Elektron with 8.3 million shares, losing Rs3.17 to close at Rs61.64 and Jahangir Siddiqui and Company with 3.7 million shares, losing Rs0.31 to close at Rs21.24.

Foreign institutional investors were net sellers of Rs72.9 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 31^st, 2015.

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