Market watch: Equities close remarkable week with corrective session
Index drops 59 points as foreign flows seem to dry up.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.28% or 58.88 points to end at the 21,283.77 points level. PHOTO AFP
KARACHI:
The last trading session of the week saw activity slow down somewhat at the Karachi bourse, with foreign flows thinning to moderate levels in a range-bound session marked by profit taking in various important stocks.
“Stocks closed bearish amid the fall in global stocks and commodities after disappointing data from China and lingering concerns that the US Federal Reserve would curb its stimulus program,” commented Ahsan Mehanti from Arif Habib Corp. “Concerns for the rising budget deficit and $500 million in International Monetary Fund loan repayments due [today] played a catalyst role in bearish sentiments at the Karachi Stock Exchange, impacting the post-election rally.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.28% or 58.88 points to end at the 21,283.77 points level. Trade volumes dropped to 361 million shares, compared with Thursday’s tally of 473 million shares. The value of shares traded during the day was Rs9.40 billion.
“Profit taking was seen in large-cap stocks like Pakistan Petroleum, Pakistan State Oil and Fauji Fertilizer Company,” reported Topline Securities Senior Manager Equity Sales Samar Iqbal. “However, active trading was witnessed in small- and mid-cap stocks like Pace Pakistan, Dewan Cement and WorldCall Telecom.
Bank of Punjab was the volume leader with 62.96 million shares, gaining Rs0.98 to finish at Rs2.29. It was followed by Pace Pakistan with 42.06 million shares, gaining Rs0.39 to close at Rs4.49; and Dewan Cement with 18.87 million shares, losing Rs0.23 to close at Rs7.63.
“Expectations of a settlement between Etisalat and the incoming government over Pakistan Telecommunication Company’s (PTCL’s) privatisation dues, along with reports of higher international traffic, kept the recent momentum in PTCL alive,” reported Muhammd Raza Rawjani, analyst at Elixir Securities
Meanwhile, Engro Corp and Engro Foods were also in focus over reported foreign buying after the Unilever buyback, Rawjani said, followed by news reports of a possible sale of up to $110 million in the Sindh Engro Coal Mining Company.
“Local equities were bound to correct today following yesterday’s jitters and declines in regional markets, as local institutions are not very keen on buying at record high levels while foreign flows remain stock selective,” observed Rawjani. Foreign institutional investors were buyers of Rs847.15 million and sellers of Rs225.97 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited
“Moreover, with today being the last trading day of the week, retailers too were not keen on taking long positions,” Rawjani said.
Shares of 361 companies were traded on Friday. At the end of the day, 188 stocks closed higher, 143 declined while 30 remained unchanged.
“Uncertainty and volatility had a hit on volumes, which were significantly lower today as investors were mostly tuned towards booking profits, especially in oils,” Rawjani added.
Published in The Express Tribune, May 25th, 2013.
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The last trading session of the week saw activity slow down somewhat at the Karachi bourse, with foreign flows thinning to moderate levels in a range-bound session marked by profit taking in various important stocks.
“Stocks closed bearish amid the fall in global stocks and commodities after disappointing data from China and lingering concerns that the US Federal Reserve would curb its stimulus program,” commented Ahsan Mehanti from Arif Habib Corp. “Concerns for the rising budget deficit and $500 million in International Monetary Fund loan repayments due [today] played a catalyst role in bearish sentiments at the Karachi Stock Exchange, impacting the post-election rally.”
The Karachi Stock Exchange’s (KSE) benchmark 100-share index shed 0.28% or 58.88 points to end at the 21,283.77 points level. Trade volumes dropped to 361 million shares, compared with Thursday’s tally of 473 million shares. The value of shares traded during the day was Rs9.40 billion.
“Profit taking was seen in large-cap stocks like Pakistan Petroleum, Pakistan State Oil and Fauji Fertilizer Company,” reported Topline Securities Senior Manager Equity Sales Samar Iqbal. “However, active trading was witnessed in small- and mid-cap stocks like Pace Pakistan, Dewan Cement and WorldCall Telecom.
Bank of Punjab was the volume leader with 62.96 million shares, gaining Rs0.98 to finish at Rs2.29. It was followed by Pace Pakistan with 42.06 million shares, gaining Rs0.39 to close at Rs4.49; and Dewan Cement with 18.87 million shares, losing Rs0.23 to close at Rs7.63.
“Expectations of a settlement between Etisalat and the incoming government over Pakistan Telecommunication Company’s (PTCL’s) privatisation dues, along with reports of higher international traffic, kept the recent momentum in PTCL alive,” reported Muhammd Raza Rawjani, analyst at Elixir Securities
Meanwhile, Engro Corp and Engro Foods were also in focus over reported foreign buying after the Unilever buyback, Rawjani said, followed by news reports of a possible sale of up to $110 million in the Sindh Engro Coal Mining Company.
“Local equities were bound to correct today following yesterday’s jitters and declines in regional markets, as local institutions are not very keen on buying at record high levels while foreign flows remain stock selective,” observed Rawjani. Foreign institutional investors were buyers of Rs847.15 million and sellers of Rs225.97 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited
“Moreover, with today being the last trading day of the week, retailers too were not keen on taking long positions,” Rawjani said.
Shares of 361 companies were traded on Friday. At the end of the day, 188 stocks closed higher, 143 declined while 30 remained unchanged.
“Uncertainty and volatility had a hit on volumes, which were significantly lower today as investors were mostly tuned towards booking profits, especially in oils,” Rawjani added.
Published in The Express Tribune, May 25th, 2013.
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