Business

Market watch: Index recovers on earnings announcements

Benchmark KSE-100 index rises 69.55 points.

Our Correspondent April 24, 2014

“The overall activity remained limited with the day covering majority of side stocks results which outperformed street consensus,” said Muhammad Sibtain Mustafa of Elixir Securities. PHOTO: FILE

KARACHI: The index consolidated after Wednesday’s plunge while $34 million gross flows from foreigners helped regain confidence.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.24% or 69.55 points to end at 28,786.74.

“The overall activity remained limited with the day covering majority of side stocks results which outperformed street consensus,” said Muhammad Sibtain Mustafa of Elixir Securities.

“Pakistan Telecommunication Company Limited (PTCL PA -4.6%) traded red and hit its lower limit near close on reported institutional selling on fear of 3G auction payment to be raised through local debt for Ufone, which shall likely raise finance cost and hurt future payouts.

“Earnings announcement by major cement makers kept the sector under limelight and stocks tested new recent highs on optimism over future earnings.

“We expect the market to find support and track flows to inch above 29k with energy and financials to be the primary drivers,” he concluded.

Ahsan Mehanti of Arif Habib Corporation said the stocks showed recovery in the quarter end earning announcement session on institutional support in selected stocks.

“Below expected auction of 3G/4G licences in the telecom sector, and pressure in textile stocks amid losses on rupee appreciation impacted market sentiments,” said Mehanti.

Trade volumes fell to 216 million shares compared with Wednesday’s tally of 277 million shares.

Shares of 356 companies were traded on Thursday. At the end of the day, 167 stocks closed higher, 177 declined while 12 remained unchanged. The value of shares traded during the day was Rs9.8 billion

Maple Leaf Cement was the volume leader with 10.4 million shares, gaining Rs0.28 to finish at Rs30.44. It was followed by Jahangir Siddiqui and Company with 9.3 million shares, losing Rs0.68 to close at Rs11.32 and Lafarge Pakistan with 9.0 million shares, gaining Rs0.05 to close at Rs13.72.

Foreign institutional investors were net buyers of Rs232 million during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, April 25^th, 2014.

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