The stock exchange was unable to break away from the bears, ending a day of cautious trading in the negative.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.55% or 147.13 points to end at 26,394.13.
“Pakistan equities opened sideways, trading lackluster and direction-less during the first half of the day before slumping down and continuing with the bearish momentum seen yesterday,” said Fareesa Baig of Elixir Securities.
“Among the laggards was Pakistan State Oil (PSO PA -1.8%) that spent the day in red, plummeting over unmet expectations as investors still await Economic Coordination Committee’s decision of revision in oil margins.
“On the other hand, investors expecting a stock dividend were left disappointed as Engro Corp (ENGRO PA -3.5%) announced 2013 earnings at Rs16.01 per share, along with a specie dividend of Engro Fertilizer EFERT PA in the ratio of 1:10. Nishat Mills (NML PA -1.6%) also announced half-yearly earnings, beating analyst estimates, but failing to stay upbeat and declining in line with broader market.”
The index has been reeling from effects of the regional and world market reshuffled, however, many analysts believe the effects on Pakistan’s market should be limited.
Clarity from the ECC might have a stabilising effect following the initial reaction to whatever decision is made, however, Wasi Khan of JS Global said that the market is expected to be unstable in upcoming sessions.
Trade volumes fell to paltry level of 202 million shares compared with Thursday’s tally of 276 million.
Shares of 385 companies were traded on Friday. At the end of the day, 90 stocks closed higher, 275 declined while 20 remained unchanged. The value of shares traded during the day was Rs7.4 billion.
Bank of Punjab (R) was the volume leader with 29.49 million shares, losing Rs0.03 to finish at Rs2.01. It was followed by Engro Fertilizers with 17.40 million shares, losing Rs1.38 to close at Rs55.35 and Jahangir Siddiqui and Company with 12.77 million shares, losing Rs0.12 to close at Rs12.69.
Foreign institutional investors were net sellers of Rs320 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, February 15th, 2014.
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