Market watch: Stock market closes in red amid low volumes
Benchmark KSE-100 index falls 61.45 points.
Trade volumes fell to 239 million shares compared with Thursday’s tally of 399 million shares.
KARACHI:
With major international markets closing in red, the index followed suit but found buyers at lows, allowing the index to report another closing above 27,000.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.23% or 61.45 points to end at 27,002.89.
“Volumes were on the lower side with 27% less shares exchanging hands against this week’s average, while turnover was 15% below the week average,” said Muhammad Raza Rawjani of Elixir Securities.
“Engro Foods (EFOODS +5%) closed at its upper price limit despite reporting below expectation results (2013 earnings at Rs1.14 per share that is 67% lower year-on-year) as investors expect improved performance by the company in the coming quarters.
“Whereas, Engro Corp (ENGRO PA -2.9%) closed in red on rumours that other urea manufacturers had challenged the Economic Coordination Committee’s decision of supplying gas to Engro’s fertiliser subsidiary at a lower rate.
“Cements, too, came under pressure after the recent price performance on likely profit-taking ahead of the weekend. Investors were also seen chasing low beta stocks helping Pakistan Petroleum (PPL PA +1%) and Hub Power Company (HUBC PA +1.8%) to close in green.
“Expect the upcoming earning announcements to guide investor interest, along with foreign flows that will remain instrumental in setting the tone ahead,” he said.
Meanwhile, Fahad Ali of JS Global Capital said the sugar sector continued its positive momentum, while others witnessed profit-taking where most of the main board closed down.
“Market will remain to be choppy for the next couple of sessions where cherry picking will be the key for investors to gain healthy returns,” said Ali.
Trade volumes fell to 239 million shares compared with Thursday’s tally of 399 million shares.
Shares of 419 companies were traded on Friday. At the end of the day, 199 stocks closed higher, 209 declined while 11 remained unchanged. The value of shares traded during the day was Rs9.7 billion.
Lafarge Pakistan was the volume leader with 13.9 million shares, gaining Rs0.06 to finish at Rs11.15. It was followed by Fauji Cement with 12.1 million shares, losing Rs0.29 to close at Rs16.08 and Pakistan Telecommunication Company Limited with 11.6 million shares, losing Rs0.41 to close at Rs29.02.
Foreign institutional investors were net buyers of Rs742 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 25th, 2014.
With major international markets closing in red, the index followed suit but found buyers at lows, allowing the index to report another closing above 27,000.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.23% or 61.45 points to end at 27,002.89.
“Volumes were on the lower side with 27% less shares exchanging hands against this week’s average, while turnover was 15% below the week average,” said Muhammad Raza Rawjani of Elixir Securities.
“Engro Foods (EFOODS +5%) closed at its upper price limit despite reporting below expectation results (2013 earnings at Rs1.14 per share that is 67% lower year-on-year) as investors expect improved performance by the company in the coming quarters.
“Whereas, Engro Corp (ENGRO PA -2.9%) closed in red on rumours that other urea manufacturers had challenged the Economic Coordination Committee’s decision of supplying gas to Engro’s fertiliser subsidiary at a lower rate.
“Cements, too, came under pressure after the recent price performance on likely profit-taking ahead of the weekend. Investors were also seen chasing low beta stocks helping Pakistan Petroleum (PPL PA +1%) and Hub Power Company (HUBC PA +1.8%) to close in green.
“Expect the upcoming earning announcements to guide investor interest, along with foreign flows that will remain instrumental in setting the tone ahead,” he said.
Meanwhile, Fahad Ali of JS Global Capital said the sugar sector continued its positive momentum, while others witnessed profit-taking where most of the main board closed down.
“Market will remain to be choppy for the next couple of sessions where cherry picking will be the key for investors to gain healthy returns,” said Ali.
Trade volumes fell to 239 million shares compared with Thursday’s tally of 399 million shares.
Shares of 419 companies were traded on Friday. At the end of the day, 199 stocks closed higher, 209 declined while 11 remained unchanged. The value of shares traded during the day was Rs9.7 billion.
Lafarge Pakistan was the volume leader with 13.9 million shares, gaining Rs0.06 to finish at Rs11.15. It was followed by Fauji Cement with 12.1 million shares, losing Rs0.29 to close at Rs16.08 and Pakistan Telecommunication Company Limited with 11.6 million shares, losing Rs0.41 to close at Rs29.02.
Foreign institutional investors were net buyers of Rs742 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 25th, 2014.