Market watch: Index closes in the black in mixed session

Broad rally pulls market into positive territory.

KARACHI: The Karachi bourse witnessed a volatile session midway during the week, with the index seesawing from the red territory in early hours of trading to close positive for the day.

“After a steep fall of more than 350 points in the last two trading sessions, the market gained 35 points, although it remained choppy throughout the day,” said Samar Iqbal, Topline Securities’ senior manager for equity sales.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.18% or 32.25 points to end at the 18,394.12 points level. Trade volumes registered slightly lower at 174 million shares, compared with Tuesday’s tally of 184 million shares. The value of shares traded during the day was Rs6.95 billion.

“The cement sector rallied today on expectations of a decline in coal prices, as commodities across the globe moved south,” reported Fahad Ali, analyst at JS Global Capital. “High volumes were witnessed in PTCL and Engro as well, with accumulation at low levels,” he added.

Maple Leaf Cement was the volume leader with 19.46 million shares, gaining Rs0.97 to finish at Rs18.36. It was followed by Pakistan Telecommunication Company (PTCL) with 14.13 million shares, losing Rs0.71 to close at Rs18.46; and Engro Corporation with 13.09 million shares, gaining Rs4.04 to close at Rs134.58.

“Engro Corp led the recovery as stock wiped early losses to close up 3% on rumours of an early resolution of technical issues that the company’s urea plant was reportedly facing for the last few days,” reported Faisal Bilwani from Elixir Securities. “DG Khan Cement ... disappointed investors with below consensus nine month earnings ... [and] managed a marginally negative close on local support. Engro Foods generated interest and closed green ahead of tomorrow’s earnings announcement, which may be followed by profit-taking in the days ahead,” he added.

Foreign institutional investors were net buyers of Rs197.58 million worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 18^th, 2013.

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