Market watch: Index ends almost flat amid volatile trading

Benchmark KSE-100 index gains 29.20 points

Our Correspondent April 13, 2016

KARACHI: Pakistan equities endured a volatile session to eventually end positive on a day that saw the benchmark-100 index trade in a band of over 300 points.

A positive start saw stocks jump on the back of bullish regional markets before the intra-day correction in crude oil prices led to profit-taking. Investors, however, chose to buy on dips, pushing the index into the black.

At close on Wednesday, the Pakistan Stock Exchange’s benchmark KSE-100 index gained 0.09% or 29.20 points to end at 33,646.10.

Elixir Securities, in its report, said stocks opened positive in line with higher regional markets and benchmark index quickly gained near 170 points.

“However, market could not sustain its run as correction in global crude led to profit taking.

“Other index names also followed suit and erased the day’s gains and consequently the KSE-100 index drifted into the red zone as the day progressed.”

“Higher-than-consensus earnings announcements by Pakistan Oilfields (POL +4%) and Attock Petroleum Limited (APL) led POL to gain 4% while APL increased +0.9%. Overall, most activity was seen in small and mid-caps with TRG (+3.4%), BYCO Petroleum (BYCO +2.6%) and Jahangir Siddiqui and Company Limited (JSCL +1.3%) topping the volumes chart over retail activity,” commented Elixir Securities analyst Ali Raza.

“We see the volatile trading pattern to continue with flows and quarterly results, primarily driving the market in near term,” he said.

Meanwhile, JS Global analyst Ahmad Saeed Khan said volatility prevailed in Wednesday’s session as the index juggled between -145 and +169 points to finally close at a flattish note.

“Pressure remained on the cement sector on the back on news that Saudi Arabia had lifted its export ban, thus increasing competition for the already depressed exports.

“The biggest laggards of the aforementioned sector were Dera Ghazi Khan Cement (DGKC -0.69%) and Maple Leaf Cement Factory (MLCF -0.93%).

“Positivity prevailed in the oil sector as International crude oil prices remained above $44.00/barrel (Brent) and better-than-expected results posted by Attock Refinery Limited (ATRL), National Refinery Limited (NRL) and POL.

“Top performers of the sector were POL (+4.03%) and NRL (+2.46%), while pressure remained on the auto and fertiliser sectors,” said Khan.

“Other star performers of the day were TRG (+3.55%) and Al Ghazi Tractors Limited (AGTL +2.41%),” he added.

Trade volumes rose to 187 million shares compared with Tuesday’s tally of 156 million shares.

Shares of 348 companies were traded on Wednesday. At the end of the day, 120 stocks closed higher, 201 declined while 27 remained unchanged. The value of shares traded during the day was Rs8.4 billion.

TRG Pakistan Limited was the volume leader with 39 million shares, gaining Rs1.18 to finish at Rs34.41. It was followed by Byco Petroleum with 16.5 million shares, gaining Rs0.50 to close at Rs19.78 and Jahangir Siddiqui and Company Limited with 12.6 million shares, gaining Rs0.29 to close at Rs23.40.

Foreign institutional investors were net buyers of Rs104 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 14th,  2016.

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