Market watch: Index stagnant as intra-day rally fizzles out

Just Benchmark KSE-100 index rises 13.93 points.

KARACHI: The stock market closed almost on the same level it started from, despite a massive 200 point jump during the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.06% or 13.93 points to end at 23,381.08.

“The market opened the week on a strong note as participants cheered the International Monetary Fund’s (IMF) expression of satisfaction over Pakistan’s quarterly performance which will clear the way for the second instalment of $550 million under the Extended Fund Facility. The market though failed to sustain its intraday highs as profit taking was witnessed across the board as day traders booked gains keeping in mind the shortened week which has only three trading days ahead of the Ashura holidays,” said Ovais Ahsan of JS Global Securities.



“The banking sector led the gains as National Bank of Pakistan (+4.9%), Habib Bank Limited (+4.5%) and United Bank Limited (0.9%) gained on anticipation of a discount rate hike of over 50 basis points in this month’s monetary policy statement. Pakistan State Oil (+1.5%) also closed up into strength as anticipation of OMC dealer margins being hiked remained strong.” Ahsan added.

“Textiles continued with the momentum, still celebrating decision of the European Union Parliament’s International Trade Committee to grant GSP Plus status to Pakistan. Pakistan Telecom (PTC PA +1.35%) continues to remain in focus and generated massive interest as govt remains firm against grey traffic,” said Fareesa Baig of Elixir Securities.

Trade volumes rose to 205 million shares compared with Friday’s tally of 137 million shares.



The value of shares traded during the day was Rs7.2 billion.

Jahangir Siddiqui and Company was the volume leader with 34 million shares gaining Rs0.22 to finish at Rs9.45. It was followed by Bank of Punjab with 18.4 million shares gaining Rs0.47 to close at Rs10.88 and Pakistan International Airlines with 13.8 million shares losing Rs0.60 to close at Rs7.22.

Foreign institutional investors were net sellers of Rs141 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, November 12^th, 2013.

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