Market watch: Index witnesses intra-day volatility, ends in black

Benchmark KSE-100 index gains 71.67 points.

KARACHI: The bourse experienced an unpredictable day as it fluctuated between high and low values, ultimately ending in the black.

At the end of the day, the Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.25% or 71.67 points to end at 28,408.03.

“The KSE-100 index managed to close in the positive with clipped gains, after a day that saw index wander from green to red and back up again,” said Fareesa Baig from Elixier Securities.



She believed this was because investors booked gains at new highs amid volumes that were last seen in June 2013.

“Cements spoiled the mood with DG Khan Cement’s (-2.7%) media announcement of construction of its new plant in Hub, Baluchistan, bringing alive fears of price wars and fight between the two large cement makers.”

“Pakistan State Oil’s (+2.6%) attracted attention on the first day of trading ex of its dividend and MCB Bank  (+1.9%) continued momentum and gained strength as it was laggard during previous trading sessions.

“Small cap retail plays dominated volume charts with Lafarge Cement (+6.8%), K-Electric (+5.5%) and Bank of Punjab (+5.5%) leading.”

JS Global’s Fahad Ali shared a similar view. “The market initially saw a correction where it made a low,” said Ali. “However, KSE‐100 recovered with interest in the insurance sector and blue chip stocks like MCB and PSO.”

Trade volumes fell to 402 million shares compared with Thursday’s tally of 449 million.

Shares of 372 companies were traded on Friday. At the end of the day, 170 stocks closed higher, 177 declined while 25 remained unchanged. The value of shares traded during the day was Rs11.4 billion.



Lafarge Pakistan was the volume leader with 73.3 million shares, gaining Rs0.82 to finish at Rs12.86. It was followed by Bank of Punjab with 45.5 million shares, gaining Rs0.59 to close at Rs11.25 and K-Electric Limited with 30 million shares, gaining Rs0.36 to close at Rs6.88.

Foreign institutional investors were net buyers of Rs534.2 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 4^th, 2014.

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