Market watch: Politics trumps all in yet another session
Market regains lost ground as tensions ease.
Trade volumes improved to 116 million shares compared with Thursday’s tally of 89 million shares.
KARACHI:
Friday marked yet another session of trading in which the bourse seesawed back to recover the previous day’s losses. Continuing with the trend this week, the stock market’s direction was infuenced more by political stimuli than financial concerns.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index regained 0.63% or 104.79 points to end at the 16,634.71 points level. Trade volumes improved to 116 million shares compared with Thursday’s tally of 89 million shares. The value of shares traded during the day was Rs3.20 billion.
“Stocks traded directionless in the morning session with thin trading, as investors remained cautious on the political noise,” commented Elixir Securities’ analyst Faisal Bilwani, “however, the announcement by a key political party … withdrawing [its] participation from the coming march on the capital on Monday, brought a flurry of activity in the second session.”
“Higher home remittances, positive talks with the International Monetary Fund on macroeconomic assessment and government assurances for timely elections affected sentiments,” added Arif Habib Corp analyst Ahsan Mehanti.
Shares of 341 companies were traded on Friday. At the end of the day 175 stocks closed higher, 117 declined while 49 remained unchanged.
“Investors built fresh positions amid hopes that political tensions will now gradually ease,” said Topline Securities’ equity dealer Samar Iqbal. “Cement stocks remained in the limelight in anticipation of better results.”
Fauji Cement was the volume leader with 22.65 million shares gaining Rs0.28 to finish at Rs6.74. It was followed by Jahangir Siddiqui and Company with 8.75 million shares gaining Rs0.24 to close at Rs14.98 and Pakistan Telecommunication Company with 6.47 million shares losing Rs0.11 to close at Rs16.28.
“DAP maker Fauji Fertilizer Bin Qasim closed marginally negative despite announcing earnings … [and a] cash payout that beat estimates,” reported Bilwani. “As expected, volumes were mainly in small and mid-cap cements, textile and telecos, with the KSE-100 index pushed higher by index heavyweights Oil and Gas Development Company and MCB Bank.
Foreign institutional investors were net buyers of Rs380.39 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 12th, 2013.
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Friday marked yet another session of trading in which the bourse seesawed back to recover the previous day’s losses. Continuing with the trend this week, the stock market’s direction was infuenced more by political stimuli than financial concerns.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index regained 0.63% or 104.79 points to end at the 16,634.71 points level. Trade volumes improved to 116 million shares compared with Thursday’s tally of 89 million shares. The value of shares traded during the day was Rs3.20 billion.
“Stocks traded directionless in the morning session with thin trading, as investors remained cautious on the political noise,” commented Elixir Securities’ analyst Faisal Bilwani, “however, the announcement by a key political party … withdrawing [its] participation from the coming march on the capital on Monday, brought a flurry of activity in the second session.”
“Higher home remittances, positive talks with the International Monetary Fund on macroeconomic assessment and government assurances for timely elections affected sentiments,” added Arif Habib Corp analyst Ahsan Mehanti.
Shares of 341 companies were traded on Friday. At the end of the day 175 stocks closed higher, 117 declined while 49 remained unchanged.
“Investors built fresh positions amid hopes that political tensions will now gradually ease,” said Topline Securities’ equity dealer Samar Iqbal. “Cement stocks remained in the limelight in anticipation of better results.”
Fauji Cement was the volume leader with 22.65 million shares gaining Rs0.28 to finish at Rs6.74. It was followed by Jahangir Siddiqui and Company with 8.75 million shares gaining Rs0.24 to close at Rs14.98 and Pakistan Telecommunication Company with 6.47 million shares losing Rs0.11 to close at Rs16.28.
“DAP maker Fauji Fertilizer Bin Qasim closed marginally negative despite announcing earnings … [and a] cash payout that beat estimates,” reported Bilwani. “As expected, volumes were mainly in small and mid-cap cements, textile and telecos, with the KSE-100 index pushed higher by index heavyweights Oil and Gas Development Company and MCB Bank.
Foreign institutional investors were net buyers of Rs380.39 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 12th, 2013.
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