Market Watch: Stocks steady on thin volumes as investors wait until year-end

Benchmark KSE-100 index edges up 3.34 points

KARACHI: Despite an initial spike, the stock market ended steady on Thursday with volumes staying low close to the end of the year.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.01% or 3.34 points to end at 25,370.03 points.

“It was a rather dull session for equities that traded over 100 million shares, dominated by low-cap retail plays,” said Harris Ahmed Batla of Elixir Securities.

“Volatility was on the lower side in the absence of any major news flow where the cement sector seemed upbeat on expectation of a price hike in the northern region following recent price uptick by manufacturers in the south,” he said.



“Lack of foreign institutional investors’ interest due to Christmas was a key factor behind the dull activity,” said Ovais Ahsan of JS Global Securities.

“Engro Chemicals led the gainers on rumours that approval to a concessionary gas rate will be given soon by the Economic Coordination Committee. In contrast, Fauji Fertiliser declined on anticipation that the concessionary gas rate for Engro could mean lower urea prices,” he said.

The pharma sector was in the limelight with GlaxoSmithKline and Abbott gaining on reports that medicine prices would be increased by 10% in the near future.

Telecom giant Pakistan Telecommunication Company Limited continued to decline on the back of talk that Zong would get a Long Distance and International licence.”

The textile sector was hit by news of Walt Disney planning to change its qualification criterion for merchandise providers, Ovais added.



Trade volumes jumped back to 191 million shares compared with Tuesday’s tally of 146 million shares.

Shares of 401 companies were traded. At the end of the day, 241 stocks closed higher, 138 declined and 22 remained unchanged. The value of shares traded during the day was Rs6.3 billion.

Fauji Cement was the volume leader with 16.66 million shares gaining Rs0.1 to finish at Rs15.3. It was followed by Pakistan Telecommunication Company Limited with 10.21 million shares, losing Rs0.41 to close at Rs30.87 and Pak Elektron Limited with 9.68 million shares, gaining Rs0.53 to close at Rs20.15.

Foreign institutional investors were net buyers of Rs84 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 27^th, 2013.

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