Market watch: Index slips down by oil and banks

Benchmark KSE-100 index declines 280.41 points.

KARACHI: The market succumbed to the bears falling by 1% ahead of the weekend and settled just over 29,000 as broader selling in oil and banks dragged the index down.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.96% or 280.41 points to end at 29,069.93.

“Pakistan State Oil (PSO PA -3.25%) and Pakistan Oilfields (POL PA -0.5%) took a breather after the recent run up while Oil and Gas Development Companies (OGDC PA -1.4%) further corrected on the last day of spot T+1 trading (will trade ex of Rs2 per share from Monday),” said Muhammad Sibtain Mustafa from Elixir Securities.

“National Bank of Pakistan (NBP PA -5%) hit its lower price limit on state institution selling and fell in the absence of foreign institutional investors’ activity.



“United Bank (UBL PA -2.9%) announced 1Q earnings in line with expectations and traded volatile until the end in red as leading institutional clients booked gains while lower than expected payout hurt sentiments.”

Cement sector performed against the broader sentiments, ending in green barring Lucky Cement (LUCK PA -0.6%) as stocks finally found interest on expectations of infrastructure spending and a rising summer demand.

Engro Corporation (ENGRO PA +2.1%) gained on rumours of approval of LNG contract while restoration of gas supply to Dawood Hercules (DAWH PA +0.7%) urea plant helped channel liquidity.

“Participants will be betting on support from foreign funds and in absence, we may see KSE-100 correcting to the tune of 3-5% while futures rollover week will also keep participation low and locals cautious,” Mustafa concluded.

Fahad M Ali of JS Global recommended investors to remain cautious. “We recommend investors to remain cautious in the next couple of sessions and wait for the dip to accumulate banks, cements and fertilisers.”

Trade volumes fell to 269 million shares compared with Thursday’s tally of 496 million.

Shares of 389 companies were traded on Friday. At the end of the day, 197 stocks closed higher, 172 declined while 20 remained unchanged. The value of shares traded during the day was Rs12.1 billion.



K-Electric Limited was the volume leader with 17.1 million shares, gaining Rs0.03 to finish at Rs7.15. It was followed by the National Bank with 16.3 million shares, losing Rs3.06 to close at Rs58.15 and Maple Leaf Cement with 14.8 million shares, gaining Rs0.62 to close at Rs30.36.

Foreign institutional investors were gross buyers of Rs68.1 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 19^th, 2014.

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