Market watch: Foreigners turn buyers, index still ends negative (Business)

Benchmark KSE-100 index falls 54.40 points

KARACHI: After dipping close to the 32,000 level, Pakistan equities closed negative with trimmed losses as falling crude prices kept investors bearish on index-heavy oil stocks.

Cements continued to attract investors despite morning news of the court issuing arrest orders of 12 brokers and director of the Employees Old-Age Benefit Institution.



At close on Tuesday, however, the Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share index recovered to close at 32,265.65, falling 0.17% or 54.40 points.

Elixir Securities analyst Faisal Bilwani said tumbling global crude continued to be a mood dampener, with index-heavy oil names lower with Pakistan Oilfields (POL PA -4.7%) hitting the lower limit during the day. “That being said, wider market did show signs of resilience with cements and industrials trading higher.

“Sharp recovery in global crude on news of possible early OPEC meeting helped domestic equities with benchmark KSE-100 closing the day marginally negative,” he said.

“We expect volumes to see a notable improvement with value buyers taking advantage of the weakness while any positive news flow from broker investigation would help bring retail and prop book driven volumes back on the board. Cement and steel remain our favourite sectors,” Bilwani added.

Meanwhile, JS Global analyst Ahmad Saeed Khan said volatility prevailed in Tuesday’s session following the trend of global markets due to diminishing crude oil prices and concerns deepening over global growth.

“On the back of volumetric growth and favourable sector dynamics, the cement sector rallied on Tuesday as almost all the scrips ended in the green zone.”

“The biggest gainers of the day in the aforementioned sector were Cherat Cement Company Limited (CHCC +5%), Dera Ghazi Khan Company (DGKC +0.81%) and Lucky Cement Limited (LUCK +0.78%), he said.



“On the back of good 6-month Auto sales numbers, Pak Suzuki Motor Company Limited (PSMC +1.83%) and HINO (+4.2%) rallied. Market direction may stay sensitive to global trends as there is a lack of major triggers,” Khan remarked.

Trade volumes rose to 127 million shares compared with Monday’s tally of 86 million.

Shares of 315 companies were traded. At the end of the day, 85 stocks closed higher, 210 declined while 20 remained unchanged. The value of shares traded during the day was Rs7.6 billion.

TRG Pakistan Limited was the volume leader with 16.3 million shares, losing Rs0.98 to finish at Rs30.91. It was followed by TPL Trakker Limited with 5.78 million shares, losing Rs0.99 to close at Rs11.82 and Fauji Cement with 5 million shares, gaining Rs0.28 to close at Rs37.97.

Foreign institutional investors were net buyers of Rs400 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited (NCCPL).

Published in The Express Tribune, January 13^th, 2016.

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