Market watch: Stock market declines after continuous highs

Benchmark KSE-100 index falls 89.58 points.

KARACHI: Celebration at the bourse seemed minimal after the benchmark index failed to sustain its rise and closed red by 90 points.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.33% or 89.58 points to end at 27,015.12.

“Oils went under pressure on reported institutional selling after Pakistan Oilfields (POL PA -1.8%) announced lower than expected earnings (EPS Rs29.19, Cash payout Rs20) pulling along index giant Oils and Gas Development Company (OGDC PA -1.8%),” said Harish Ahmed Batla of Elixir Securities.



“Recent development on the monetary front having interest rate unchanged at 10% pushed financials in red with MCB Bank (-1.9%). Due to similar reason, cements managed to gather trading interest ahead of their respective earning announcements led by Kohat Cement (KOHC PA +5%) and DG Khan Cement (DGKC PA +1.3%).

“We see momentum to remain upbeat during the earning season and expect financials to regain interest in the latter part of the season on payout excitement and future earnings growth,” he added.

Meanwhile, Fahad Ali of JS Global Capital said the market made a low of 26,948 points breaking 27,000 levels, however, recovered quickly on the back of strong buying from investors in value stocks.

Announcement of board meeting for Fauji Fertilizer Company (FFC) somewhat changed the investor sentiment as rumours of a bonus in FFC circulated the market.



“We believe the market will remain volatile in the next few trading sessions where cherry picking in stocks will be the key for investors to beat the market returns in short term,” Ali said.

Trade volumes rose to 383 million shares compared with Tuesday’s tally of 261 million.

Shares of 425 companies were traded on Tuesday. At the end of the day, 265 stocks closed higher, 143 declined while 17 remained unchanged. The value of shares traded during the day was Rs13.6 billion.

Faysal Bank was the volume leader with 29.4 million shares, gaining Rs1.00 to finish at Rs13.40. It was followed Pakistan Telecommunication Company Limited with 24.6 million shares, gaining Rs0.86 to close at Rs30.25 and Pakistan International Airlines with 17.8 million shares, gaining Rs0.12 to close at Rs9.85.

Foreign institutional investors were net buyers of Rs406 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, January 23^rd, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.