Market watch: Political instability leaves index in the red
Benchmark KSE-100 index falls 326.44 points.
Trade volumes rose to 153 million shares compared with Monday’s tally of 129 million shares. PHOTO: ONLINE
KARACHI:
A turbulent day at the bourse meant the stock market experienced a sharp dip due to political uncertainties clouding the index’s bright start.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.10% or 326.44 points to end at 29,324.60.
Elixir Security analyst Faressa Baig said the session kicked off in the black as investors welcomed political consensus for the military operation in North Waziristan.
“However, market soon switched gears, taking a dip into the red on political unrest and deteriorating law and order situation after a protest in Lahore turned violent,” said Baig
According to Baig, energy stocks including Pakistan Oil Fields (POL) -0.9%, Oil and Gas Development Co (OGDC) -1.7% and Pakistan State Oil (PSO)-0.68% witnessed an unexciting day, whereas financials also declined with MCB Bank (MCB) -1.3%, Habib Bank (HBL) -1.9% down on institutional selling while United Bank (UBL) -2% also closed negative on fear of selling as shares purchased via privatisation are to be transferred to respective buyers in the days ahead.
Baig added that autos mainly Pak Suzuki Motors (PSMC) +5% and General Tyre (GTYR) +5% continued to gain and closed on their respective upper price limits over the re-launch of the “Yellow Cab Scheme” by the Punjab government in its provincial budget.
JS Global analyst Mujtaba Barakzai said that profit-taking and precautionary measures were witnessed across the board by investors as external and internal law and order situation weighed in on investors.
Textiles (NML down 2.5%) and banks (NBP down 0.6%) were the sectors which witnessed most selling, said Barakzai. “International FOMC meeting for raising the interest rates has kept the foreign clients on the back foot to take new positions.”
Trade volumes rose to 153 million shares compared with Monday’s tally of 129 million shares.
Shares of 348 companies were traded on Tuesday. At the end of the day, 21 stocks closed higher, 256 declined while 71 remained unchanged. The value of shares traded during the day was Rs7.4 billion.
Byco Petroleum was the volume leader with 20.8 million shares, gaining Rs0.44 to finish at Rs12.86. It was followed by Fauji Cement with 7.2 million shares, losing Rs0.09 to close at Rs20.35 and the Lafarge Pakistan with 7.18 million shares, losing Rs0.19 to close at Rs14.30.
Foreign institutional investors were net buyers of Rs180 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 18th, 2014.
A turbulent day at the bourse meant the stock market experienced a sharp dip due to political uncertainties clouding the index’s bright start.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.10% or 326.44 points to end at 29,324.60.
Elixir Security analyst Faressa Baig said the session kicked off in the black as investors welcomed political consensus for the military operation in North Waziristan.
“However, market soon switched gears, taking a dip into the red on political unrest and deteriorating law and order situation after a protest in Lahore turned violent,” said Baig
According to Baig, energy stocks including Pakistan Oil Fields (POL) -0.9%, Oil and Gas Development Co (OGDC) -1.7% and Pakistan State Oil (PSO)-0.68% witnessed an unexciting day, whereas financials also declined with MCB Bank (MCB) -1.3%, Habib Bank (HBL) -1.9% down on institutional selling while United Bank (UBL) -2% also closed negative on fear of selling as shares purchased via privatisation are to be transferred to respective buyers in the days ahead.
Baig added that autos mainly Pak Suzuki Motors (PSMC) +5% and General Tyre (GTYR) +5% continued to gain and closed on their respective upper price limits over the re-launch of the “Yellow Cab Scheme” by the Punjab government in its provincial budget.
JS Global analyst Mujtaba Barakzai said that profit-taking and precautionary measures were witnessed across the board by investors as external and internal law and order situation weighed in on investors.
Textiles (NML down 2.5%) and banks (NBP down 0.6%) were the sectors which witnessed most selling, said Barakzai. “International FOMC meeting for raising the interest rates has kept the foreign clients on the back foot to take new positions.”
Trade volumes rose to 153 million shares compared with Monday’s tally of 129 million shares.
Shares of 348 companies were traded on Tuesday. At the end of the day, 21 stocks closed higher, 256 declined while 71 remained unchanged. The value of shares traded during the day was Rs7.4 billion.
Byco Petroleum was the volume leader with 20.8 million shares, gaining Rs0.44 to finish at Rs12.86. It was followed by Fauji Cement with 7.2 million shares, losing Rs0.09 to close at Rs20.35 and the Lafarge Pakistan with 7.18 million shares, losing Rs0.19 to close at Rs14.30.
Foreign institutional investors were net buyers of Rs180 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 18th, 2014.