Market watch: Index continues positive momentum

Benchmark KSE-100 index gains 40 points.

KARACHI:

The bourse witnessed positive momentum on Friday but volumes remained low awaiting the final monetary policy for FY14.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.14% or 40.31 points to end at 28,883.33.

“Pakistan equities opened gap up on the last day of the week carrying momentum from the previous session. However, profit-taking at 29k and caution ahead of the monetary policy wiped earlier gains,” said Harris Ahmed Batla of Elixir Securities.

“Mixed estimates over policy rates kept traders sidelined from blue chips while 2nd and 3rd-tier plays dominated volume charts,” said Batla.



“Textile plays Nishat Mills Limited (NML PA 4.4%) and Nishat Chunian Limited NCL PA +5% that remained laggard in the recent rally and were out of favour on declining margins and Pakistan rupee appreciation came back to the forefront and fetched buying interest over anticipated favorable incentives for the sector in the coming budget.

“Index heavy plays continued to gain with Murree Brewery MUREB (PA +5%) and Pakistan Tobacco PAKT (PA +2.3%) amongst the notables,” said Batla.

“K-Electric Limited (KEL PA) led volumes and closed little changed as investors take notice of this spectacular turnaround story in the energy space.

“We expect outcome of monetary policy to guide direction for next week with index flirting with 29K. We recommend buying KEL, Pakistan State Oil, NML, NCL, Bank Alfalah Limited, National Bank Pakistan and Pakistan Oilfields Limited,” concluded Batla.

Trade volumes fell to 132 million shares compared with Thursday’s tally of 213 million shares.

Shares of 371 companies were traded on the last day of the week. At the end of the day, 222 stocks closed higher, 134 declined while 15 remained unchanged. The value of shares traded during the day was Rs7.1 billion.



K-Electric Limited continued to be the volume leader with 27.8 million shares, gaining Rs0.03 to finish at Rs7.26. It was followed by the Nishat Mills Limited with 6.7 million shares, gaining Rs7.78 to close at Rs113.81 and Bank of Punjab with 5.8 million shares, losing Rs0.15 to close at Rs9.83.

Foreign institutional investors were net buyers of Rs319 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 17^th, 2014.

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