Market Watch: Index takes a breather to close marginally down

Market swings either way in session marked by heavy trading.

KARACHI:

Following a bearish trend in global markets, the Karachi Stock Exchange closed a hundred points deep in the red territory in a volatile session that saw the index seesaw wildly on either side of the opening level.

“Equities settled in the red after early strength turned into afternoon weakness as profit takers and momentum buyers tussled at highs,” commented Jawwad Aboobakar from Elixir Securities.

Volumes continue to register at above average levels, as the daily value of traded shares shot through the roof to touch unprecedented highs. Meanwhile, foreign buying continued at fever pitch, with around $69 million worth of shares bought in the Thursday session alone.



The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.54% or 116.25 points by the close of trading to end at the 21,342.65 points level. Trade volumes fell to 473 million shares compared with Wednesday’s tally of 544 million shares. The value of shares traded during the day shot up to Rs17.98 billion.

“Profit-taking was seen in big stocks, including the Oil and Gas Development Company, Pakistan Petroleum, Pakistan Telecommunication Company and MCB Bank,” reported Topline Securities’ Samar Iqbal.

“Initial pressure started from the oil sector, from where it managed to trickle down to banking, cement and textile sectors,” commented Fahad Ali from JS Global Capital.



Dewan Cement was the volume leader with 49.48 million shares, gaining Rs0.74 to finish at Rs7.86. It was followed by Fauji Cement with 27.12 million shares, losing Rs0.36 to close at Rs11.70; and TRG Pakistan with 21.05 million shares, losing Rs0.06 to close at Rs10.30.

“Engro Corp (up 4.9%) remained in the limelight, hitting its upper circuit intraday on morning news of alternate gas supply to [its] plants,” Aboobakar said, “while other fertiliser stocks, namely Fauji Fertilizers (up 3.3%) generated massive interest on reported foreigners’ buying.”

“Banks bore the brunt of selling, with index heavy MCB Bank closing down 2.6% and United Bank down 3.3%,” Aboobakar added.

Foreign institutional investors were net buyers of Rs6.73 billion worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 24^th, 2013.

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