Market watch: Stocks volatile as company results upset investors

Benchmark KSE-100 index rises 13.56 points.

Our Correspondent October 24, 2013
Trade volumes fell to paltry level of 92 million shares compared with Wednesday’s tally of 148 million shares. PHOTO: FILE

KARACHI: The stock market ended slightly above where it started after a volatile session on Thursday through the result season.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.06% or 13.56 points to end at 22,360.85 point level.

“Pakistan equities changed little after a volatile trading as gains in index heavy Oil and Gas Development Company (OGDC PA +2.9%) and MCB (MCB PA +1%) were countered well by profit taking in broader market,” said Faisal Bilwani of Elixir Securities.

“Earnings announcements were mostly disappointing. However, foreigners’ continuous inflow and local institutional cherry picking kept interest alive and volumes at a somewhat respectable level. Pakistan State Oil (PSO PA -2.8%) traded red on fears of sharp resurgence in energy sector circular debt while Engro Foods (EFOODS PA -3.7%) hit an 11-month low after guidance from company yesterday that suggests possible decline in earnings for the ongoing quarter,” Bilwani added.

“The market saw a volatile session today closing marginally in the green with index heavyweights Oil and Gas Development Company (+2.9%) and MCB Bank (+1.0%) major gainers for the day. The banking sector was the unlikely saviour of the day finally bouncing back after sentiment had been dampened by the State Bank’s regulatory move to cap banking spreads,” said Ovias Ahsan of JS Global Securities.

“Pakistan State Oil (- 2.9%) was a major decliner for the day as receivables of the oil marketing company giant have reportedly piled up to nearly Rs100 billion creating liquidity problems for the company,” Ahsan said.

Trade volumes fell to paltry level of 92 million shares compared with Wednesday’s tally of 148 million shares.

Shares of 309 companies were traded on Thursday. At the end of the day 119 stocks closed higher, 175 declined while 15 remained unchanged. The value of shares traded during the day was Rs4.5 billion.

Pakistan Telecommunication Company Limited was the volume leader with 7.1 million shares losing Rs0.13 to finish at Rs26.85. It was followed by Fauji Cement with 7.1 million shares losing Rs0.23 to close at Rs12.12 and Bank Al Falah with 6.9 million shares gaining RsRs0.59 to close at Rs12.12.

Foreign institutional investors were net buyers of Rs1 billion, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, October 25th, 2013.

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