Market watch: Index ends marginally positive after profit-taking

Benchmark KSE-100 index rises 27 points

KARACHI: The index endured a late-selling spree to end marginally positive as results announcements and intra-day movement in global crude prices kept investors interested.

At close on Wednesday, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index rose 0.09% or 27 points to end at 31,101.38



After a positive start that saw the index hit an intra-day high of 31, 386 points, profit-taking meant most gains were wiped off. Interest was seen across the cement and oil and gas sectors.

JS Global Ahmed Saeed Khan said the market opened on a positive note as the index made an intraday high of 311 points but failed to sustain momentum.

“Investor interest was seen in the cement sector as DG Khan (+0.90%), Fauji (+0.75%) and Kohat Cement (1.26%) as all closed in the green zone.

“Crude oil prices proved instrumental, despite losing value, as Oil and Gas Dev. Company (+0.70%) and Pakistan Petroleum (+0.46%) were major index movers.

“Bank AlHabib gained as the bank declared earing per share (EPS) of Rs6.66 for calendar year (CY) 2015 depicting an impressive 17% year-on-year (YoY) growth.



“Engro Foods (-0.88%) came off after announcing CY15 EPS of Rs4.13 which was lower than consensus expectation of Rs4.5 per share.”

Meanwhile, Elixir Securities stated that stocks failed to sustain gains in early trade on lack of any excitement and limited institutional interest.

“A positive open on higher oil and interest in materials led to KSE-100 index seeing as much 1% rise during mid-day, but profit taking gradually filled the gap for index to settle near 31,100. “Fauji Fertilizer (-2.6%), despite announcing earnings slightly above expectations, closed lower while Engro Foods (-1%) was also negative after 2015 earnings missed estimates.

“Wider market also was dull on roll over week and lack of clarity on foreign flows and regional markets.

“With monetary policy due over the weekend, we expect thin trading and very selective institutional participation during the remainder of this week.”

Trade volumes rose to 119 million shares compared with Tuesday’s tally of 108 million shares.

Shares of 342 companies were traded on Wednesday. At the end of the day, 154 stocks closed higher, 166 declined while 22 remained unchanged. The value of shares traded during the day was Rs6.4 billion.

TRG Pakistan was the volume leader with 7.4 million shares, gaining Rs0.55 to finish at Rs28.01. It was followed by Silkbank with 6.1 million shares, gaining Rs0.20 to close at Rs1.85 and Fauji Cement with 5.7 million shares, gaining Rs0.28 to close at Rs37.82.

Foreign institutional investors were net sellers of Rs197 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 28^th,  2016.

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