Market watch: Index ends almost flat as volume dries up

Benchmark KSE-100 index rises 25.34 points.

KARACHI: The benchmark-100 index took a breather on Friday as stocks remained relatively flat to end an eventful week on a dampening note. Foreign investment continued to funnel in amid news of Pakistan re-joining MSCI EM Index.

At close on Friday, the Pakistan Stock Exchange’s benchmark KSE-100 index rose 0.07% or 25.34 points to end at 38,776.94.

Elixir Securities analyst Ali Raza said equities traded volatile and closed the day little changed with unusual volumes, considering the brief trading timings on Friday, as most activity in the wider market was seen in the last sixty minutes of trading.



“All major sectors namely extraction and production, fertiliser and cement, closed lower on lack of flows with the exception of financials that stood strong from the word go and also pushed benchmark index higher for a brief period near day’s end.

“Index heavy Habib Bank (HBL +4%) hit upper price limits intra-day and contributed most to gains, while MCB Bank (+0.5%) and United Bank (UBL -0.2%) succumbed to selling pressure near day’s end on reported foreign selling.

“Engro Foods (EFOODS +2.8%) closed higher as investors bet on it fetching a premium price from stake-sale.”

Meanwhile JS Global report stated that volatility prevailed as the index juggled 325 points in the red and green zone.

As per JS Global analyst Ahmed Saeed, “Pressure was witnessed in the fertiliser sector on the back of news that fertiliser companies will bear price cut of Rs50 per bag. Major laggard of the sector were Fauji (-1.49%) and Engro Fert (-1.47%).

“The nine MSCI scrips that will form part of MSCI Emerging Market Index continued to remain in the limelight, although profit taking was witnessed today across the board. Top performer among the MSCI scrip’s today was HBL (+4.76%).



“Due to depressed global crude oil prices the oil sector remained under pressure with the exemption of National Refinery Limited (NRL +5.00%) that hit its upper circuit on back of rumours that the company’s expansion will be completed by August. Top laggards of the aforementioned sector were Pak Petroleum (PPL -2.14%) and Oil and Gas Dev (OGDC -1.15%).

“Moving forward we remain positive in the market although a short correction at these levels cannot be ruled out. Hence, caution is advised.”

Trade volumes fell to 135 million shares compared with Thursday’s tally of 256 million shares.

Shares of 338 companies were traded on Friday. At the end of the day, 122 stocks closed higher, 194 declined while 22 remained unchanged. The value of shares traded during the day was Rs11.3 billion.

K-Electric was the volume leader with 17.7 million shares, gaining Rs0.01 to finish at Rs8.06. It was followed by Pak Int Bulk Terminal with 8.1 million shares, losing Rs0.57 to close at Rs33.10 and Habib Bank with 7.1 million shares, gaining Rs9.57 to close at Rs210.49.

Foreign institutional investors were net buyers of Rs946 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 18^th, 2016.

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