Market watch: Index touches lowest point of April
Benchmark KSE-100 index declines 191.16 points.
Benchmark KSE-100 index declines 191.16 points.
KARACHI:
The index witnessed a dull day with trading volumes slumping to their lowest level in April amid caution and uncertainty.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.66% or 191.16 points to end at 28,878.77.
JS Global Analyst Fahd M Ali said the activity at the bourse remained lacklustre as volumes were recorded at 163 million shares.
“Major volumes were witnessed in Fauji Cement Corporation Limited, Arif Habib Corporation Limited and Maple Leaf Cement,” said Ali. “Foreign flows remained low due to Easter holidays and weak local participation in the market maintained pressure on the index throughout the day.
“We expect the market to remain range bound to positive in the next couple of sessions with foreign flows returning to the market, we recommend investors to accumulate banks and cements,” concluded Ali.
Meanwhile, Naveen Yaseen of Elixir Securities said that Pakistan equities witnessed a dull day with trading volumes lowest in April as investors were cautious and hunted for clues on foreigners’ participation in absence of major triggers.
“Pakistan State Oil (PSO PA -1.8%) dented confidence in early trade and continued its recent downtrend on account of reported state institution selling and on renewed fears of piling energy sector receivables.
“Engro Corp (ENGRO PA -1.9%) faced pressure due to the possibility of diversion of gas supply from its fertiliser plant to Guddu’s 747MW expansion (inaugurated by the premier on Monday),” said Yaseen.
“National Bank (NBP PA) continued to disappoint as investors opted to wait for its quarterly earnings for clarity on its bad loans whereas, Nishat Mills (NML PA) also traded red on reported institutional selling despite recent imposition of duty on yarn that should support the sector.
“We suggest staying long in Bank Al-Falah Limited, Nishat Chunian Power Limited, Engro Corporation and Fatima Fertilizer,” concluded Yaseen.
Trade volumes fell to 163 million shares compared with Friday’s tally of 269 million.
Shares of 359 companies were traded on Monday. At the end of the day, 114 stocks closed higher, 223 declined while 22 remained unchanged. The value of shares traded during the day was Rs7.2 billion.
Fauji Cement Corporation Limited was the volume leader with 11.1 million shares, gaining Rs0.32 to finish at Rs18.07. It was followed by Arif Habib Corporation Limited with 9.1 million shares, gaining Rs0.84 to close at Rs29.87 and Maple Leaf Cement with 7.3 million shares, gaining Rs0.05 to close at Rs30.41.
Foreign institutional investors were gross buyers of Rs91.9 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 22nd, 2014.
The index witnessed a dull day with trading volumes slumping to their lowest level in April amid caution and uncertainty.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.66% or 191.16 points to end at 28,878.77.
JS Global Analyst Fahd M Ali said the activity at the bourse remained lacklustre as volumes were recorded at 163 million shares.
“Major volumes were witnessed in Fauji Cement Corporation Limited, Arif Habib Corporation Limited and Maple Leaf Cement,” said Ali. “Foreign flows remained low due to Easter holidays and weak local participation in the market maintained pressure on the index throughout the day.
“We expect the market to remain range bound to positive in the next couple of sessions with foreign flows returning to the market, we recommend investors to accumulate banks and cements,” concluded Ali.
Meanwhile, Naveen Yaseen of Elixir Securities said that Pakistan equities witnessed a dull day with trading volumes lowest in April as investors were cautious and hunted for clues on foreigners’ participation in absence of major triggers.
“Pakistan State Oil (PSO PA -1.8%) dented confidence in early trade and continued its recent downtrend on account of reported state institution selling and on renewed fears of piling energy sector receivables.
“Engro Corp (ENGRO PA -1.9%) faced pressure due to the possibility of diversion of gas supply from its fertiliser plant to Guddu’s 747MW expansion (inaugurated by the premier on Monday),” said Yaseen.
“National Bank (NBP PA) continued to disappoint as investors opted to wait for its quarterly earnings for clarity on its bad loans whereas, Nishat Mills (NML PA) also traded red on reported institutional selling despite recent imposition of duty on yarn that should support the sector.
“We suggest staying long in Bank Al-Falah Limited, Nishat Chunian Power Limited, Engro Corporation and Fatima Fertilizer,” concluded Yaseen.
Trade volumes fell to 163 million shares compared with Friday’s tally of 269 million.
Shares of 359 companies were traded on Monday. At the end of the day, 114 stocks closed higher, 223 declined while 22 remained unchanged. The value of shares traded during the day was Rs7.2 billion.
Fauji Cement Corporation Limited was the volume leader with 11.1 million shares, gaining Rs0.32 to finish at Rs18.07. It was followed by Arif Habib Corporation Limited with 9.1 million shares, gaining Rs0.84 to close at Rs29.87 and Maple Leaf Cement with 7.3 million shares, gaining Rs0.05 to close at Rs30.41.
Foreign institutional investors were gross buyers of Rs91.9 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, April 22nd, 2014.