Market watch: KSE undergoes correction, eight-day rally ends

Index falls 238 points as investors book profits above 23,000-point level.

Our Correspondent July 11, 2013
“The market finally saw a correction after eight days of continuous gains as blue chips drive the index downwards,” says analyst at JS Global Capital. PHOTO: FILE/Reuters

KARACHI: The Karachi bourse took a breather after continuously gaining for eight sessions – one of the longest rallies in history of the bourse – as investors opted to bank profits above the 23,000-point level to redeem the gains. All index heavyweights stocks took a beating on reported institutional selling.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.03% or 237.81 points to end at 22,747.13 points. Trade volumes fell considerably to clock in at a paltry level of 174 million shares compared with Wednesday’s tally of 339 million shares.

“The market finally saw a correction after eight days of continuous gains as blue chips drive the index downwards,” reported Ovais Ahsan, analyst at JS Global Capital.

“Redemption at some of the local funds also fostered selling pressure while all-time high levels invited caution from participants,” Ashan added.

All stocks were under pressure from the opening bell as investors opted to book gains, while the broader market spent most of the afternoon in the red on thin volumes on the first day of Ramadan, Jawwad Aboobakar, analyst at Elixir Securities.

On the contrary, small and medium sized independent power producers remained in the limelight after huge dividend announcement by Kohinoor Energy.

Shares of 339 companies were traded on Thursday. At the end of the day 82 stocks closed higher, 221 declined while 36 remained unchanged. The value of shares traded during the day was Rs10.63 billion.

Bucking the downward trend, Engro Corporation climbed on rumours of allotment of excess gas supply to its fertiliser division from the Mari gas field.

Country’s two utility providers – Sui Southern Gas Company and Sui Northern Gas Pipelines – lost ground after the SSGC denied that the Oil and Gas Regulatory Authority has eased the unaccounted for gas allowance to 7% from the current 4.5%.

Pakistan International Airlines was the volume leader with 21.78 million shares shedding Rs0.9 to finish at Rs8.99. It was followed by National Bank of Pakistan with 15.95 million shares losing Rs1.16 to close at Rs49.31 and Engro Corporation with 12.03 million shares gaining Rs5.12 to close at Rs164.53.

Foreign institutional investors were net sellers of Rs15.11 million, according to data maintained by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 12th, 2013.

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