A stock broker monitoring the stock prices during the trading session at Karachi Stock Exchange. PHOTO: INP
KARACHI: Amid lackluster interest, the index started the week in the red.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index declined 0.53% or 155.3 points to end at 29,094.12.
According to JS Global Analyst Fahd Ali, investor interest remained lacklustre as compared to the earlier trading sessions with major volumes traded in LaFarge Pakistan Cement Limited and Jahangir Siddiqui and Company Limited.
“Textile sector continued to remain gloomy as Pakistan rupee further appreciated against the US dollar,” said Ali, adding that profit-taking was seen mainly in banking sector followed by refineries.
“We recommend investors to remain cautious and wait for a dip to accumulate stocks,” concluded Ali.
Meanwhile, according to Faisal Bilwani of Elixir Securities, Pakistan equities closed the first day of the week red on profit-taking but still hung on to the 29,000 levels.
“On a topsy-turvy day, turnover was lower by 12% of April average while activity was primarily in small caps from retail base,” said Bilwani.
“Most damage came from MCB Bank (MCB PA –2.6%) that corrected after gains in excess of 11% this month.
“While textile plays Nishat Mills Limited (NML PA –2.9%) and Nishat Chunian Limited (NCL PA 4.2%) also closed lower as rupee gains is likely to hurt exports in an industry that is already bracing for not very exciting earnings in the coming quarters,” said Bilwani.
“Engro Fertilizers (EFERT PA +5%) ignored the broader market and hit upper price limit to close at record levels, (+148%) from listing in January this year, on reported foreigners buying and on hopes of stellar quarterly earnings.
“With flows guiding direction, locals will continue to remain selective and track foreigners’ activity, however, we see volatility to increase near 29,000,” concluded Bilwani.
Trade volumes fell to 295.6 million shares compared with Friday’s tally of 309 million.
Shares of 378 companies were traded on Monday. At the end of the day, 154 stocks closed higher, 200 declined while 24 remained unchanged. The value of shares traded during the day was Rs11.5 billion
LaFarge Pakistan was the volume leader with 41 million shares, gaining Rs0.03 to finish at Rs13.72. It was followed by Jahangir Siddiqui Company Limited with 40.7 million shares, gaining Rs0.83 to close at Rs13.20 and Jahangir Siddiqui Bank Limited (JS Bank) with 21.8 million shares, gaining Rs1.00 to close at Rs5.83.
Foreign institutional investors were gross sellers of Rs125 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 15th, 2014.
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