Market watch: A directionless day at the bourse

Benchmark KSE-100 index falls 18.57 points.

Our Correspondent May 22, 2014
Lafarge Pakistan was the volume leader with 19.7 million shares, losing Rs0.18 to finish at Rs14.16.


The index settled marginally negative on a day that can best be described as directionless with mid-day gains being erased by institutional selling.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.06% or 18.57 points to end at 28,741.55.

“Oil and Gas Development (OGDC PA +0.16%) and Pakistan State Oil (PSO PA +0.45%) helped keep the index afloat while investor interest in Habib Bank (HBL PA +1.2%) saw the stock gain strength,” said Fareesa Baig from Elixir Securities.

“Meanwhile, Pakistan Telecom (PTC PA +0.8%) generated volumes on investor excitement as the prime minister handed over the recently issued 3G and 4G mobile spectrum licences to the successful mobile companies; stock bounced back after recent declines, nevertheless fundamental concerns with respect to upcoming earnings remain.

“DG Khan Cement (DGKC PA -2.9%) closed negative in line with the sector despite hopes of higher public spending allocation and possible reduction in excise duty in the upcoming budget.

“Moreover, reported auction of Lafarge Pakistan in early June is also an interesting event which is likely to set the tone for the sector in the medium term,” said Baig.

“We see selective interest with the upcoming budget announcement on June 3 to set the direction for broader market in absence of immediate triggers. We recommend staying long in PSO, POL, OGDC, NML, HBL and BAFL,” she concluded.  Trade volumes fell to 145 million shares compared with Wednesday’s tally of 255 million shares.

Shares of 351 companies were traded on Thursday. At the end of the day, 143 stocks closed higher, 182 declined while 26 remained unchanged. The value of shares traded during the day was Rs6 billion.

Lafarge Pakistan was the volume leader with 19.7 million shares, losing Rs0.18 to finish at Rs14.16. It was followed by K-Electric Limited with 18.6 million shares, losing Rs0.11 to close at Rs7.67 and TRG Pakistan Limited with 11.1 million shares, gaining Rs1 to close at Rs14.61.

Foreign institutional investors were net sellers of Rs95 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, May 23rd, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.


Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ


Most Read