Market watch: Stock market recovers but only slightly

Benchmark KSE-100 index rises 17.47 points.

KARACHI: After several days of decline, the index broke its pattern on the last day of the week, witnessing a rise, albeit a slight one with political uncertainty still dominating the bourse.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.06% or 17.47 points to end at 28,691.84.



Elixir Securities analyst Sibtain Mustafa said the index witnessed volatile trading as late selling wiped morning gains. “Institutional buying interest at lows provided the much-needed support,” said Mustafa. “However, investors continued to remain cautious and confused as politics continued to play a key role.

“Pakistan Telecom (PTC) - 4.9% hit intraday lower circuit but managed to close above; stock has fallen by over 15% in the past three trading sessions after ICH was disbanded earlier this week.

“United Bank (UBL) -0.83% exchanged over 5 million shares on the second consecutive day as reported FII institutional activity played on both sides. Cements and select oil names continue to play in a narrow range as leading players remain sidelined.”

Mustafa said that investors welcomed the military operation, but the bull run soon ended following violence in Lahore that remains a highly polarising political issue.

Trade volumes fell to 113 million shares compared with Thursday’s tally of 193 million shares.

Shares of 322 companies were traded on the last trading session of the week. At the end of the day, 173 stocks closed higher, 125 declined while 24 remained unchanged. The value of shares traded during the day was Rs6.13 billion.



PTCL was the volume leader with 19.5 million shares, declining in Rs1.28 to finish at Rs25.34. It was followed by Fauji Cement with 10.96 million shares, declining Rs0.12 to close at Rs19.44 and National Bank with 5.9 million shares, gaining Rs0.55 to close at Rs59.83.

Foreign institutional investors were net buyers of Rs445 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 21^st, 2014.

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