Market Watch: Stock market falls as volatility persists

Benchmark KSE-100 index drops 28 points.

KARACHI: The stock market fell for a second day as a volatile market touched dismal lows by mid-day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.12 or 27.59 points to end at 23,060.9 points.

“The KSE 100‐Index closed marginally down by 28 points after a volatile session today. Investors preferred to adopt a wait and watch strategy after yesterday’s massive outflow by foreign investors,” said Raheel Ashraf of JS Global.

“Selling pressure in Exploration and Production (E&P) stocks dragged the market into the red with low volumes. The Pakistani rupee further depreciated against the dollar today, touching 109, which further dampened the market sentiment in the first session. Index set a low of 22,795 and rebounded from there which was crucial technical support,” Ashraf added.



“Pakistan equities started the day on a weak note, with yesterday’s foreign selling pressures being a cause of concern, but soon caught up to ride another volatile day at the index. Maple Leaf Cement (MLCF PA -2.9%) announced FY13 earnings per share (EPS), exceeding expectations at Rs6.11, up 5.5 times YoY, however disappointing investors expecting a payout and dampening sector sentiments in general,” said Fareesa Baig of Elixir Securites.

“On the contrary, Nishat Mills (NML PA +1.5%) brought about a rebound with its FY13 EPS clocking in at Rs16.6, up 72% YoY, coupled with a cash payout of Rs4 per share, in line with market expectations,” Baig added.

Trade volumes fell to 172 million shares compared with Tuesday’s tally of 236 million shares.

Shares of 330 companies were traded on Wednesday. At the end of the day 143 stocks closed higher, 164 declined while 23 remained unchanged. The value of shares traded during the day was Rs5.7 billion.



Telecard Limited was the volume leader with 13.9 million shares losing Rs0.36 to finish at Rs6.5. It was followed by TRG Pakistan Limited with 10.9 million shares gaining Rs0.32 to close at Rs10.43 and Bank of Punjab with 9.9 million shares gaining Rs0.06 to close at Rs12.48.

Foreign institutional investors were net sellers of Rs425 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, September 26^th, 2013.

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