Market watch: Index ends week on a dull note

Benchmark KSE-100 index falls 16.48 points.

KARACHI:

Anticipation of the central bank’s upcoming monetary policy adversely affected the index, as the market ended the week on a negative note.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.06% or 16.48 points to end at 28,494.54.

Elixir Securities analyst Fareesa Baig said equities opened the last trading day of the week on a positive note, gaining +0.5 % in the morning session. “In the second half, trading turned volatile and the day closed almost flat,” said Baig. “It was a lacklustre day, with institutional participation dull amid heightened political noise and speculations about the upcoming monetary policy next week.”



According to Baig, increase in oil production saw a rise in interest in oil stocks mainly Pakistan Oil Fields (POL) +2%, whereas Pakistan State Oil (PSO) -0.6% continued to recover recent losses.

“Financials traded mixed, with Bank Alfalah (BAFL) -0.3% and National Bank (NBP) -1.4% the most active as benchmark rate expectations remain unclear,” said Baig.

Baig said that it is expected that market volumes will gain pace post weekend with investors awaiting the upcoming monetary policy stance by the central bank. “Whereas political protests over the weekend will give some clarity on the current political scenario.”

Meanwhile, JS Global analyst Mujtaba Barakzai felt investors remained cautious ahead of the budget announcement. “Investors are cautious,” said Barakzai. “There is some apprehension on potential changes in the capital gains tax regulations as well as fears of additional taxation on certain sectors.”



Barakzai concluded that profit-taking was witnessed across the board but foreign participation provided some support to the benchmark Index. Trade volumes fell to 119 million shares compared with Thursday’s tally of 132 million.

Shares of 335 companies were traded on the last trading session of the week.

Jahangir Siddiqui and Company was the volume leader with 17.9 million shares, gaining Rs0.55 to finish at Rs12.11. It was followed by JS Bank Limited with 4.6 million shares, gaining Rs0.26 to close at Rs6.33 and Bank Alfalah with 3.8 million shares, declining Rs0.08 to close at Rs27.21.

Foreign institutional investors were net buyers of Rs145 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 10^th, 2014.

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