Market watch: A mixed day at the bourse

Benchmark KSE-100 index rises 58.41 points.

KARACHI: The index experienced a mixed day with the banking sector gathering interest before cement took centre stage.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index rose 0.20% or 58.41 points to end at 29,057.44.

Elixir Securities analyst Naveen Taseen said that stocks started the day with no clear direction amid thin volumes. “However, financials gathered interest at lows with Habib Bank (HBL) 2.4%, MCB Bank (MCB) +1.3% and United Bank Limited (UBL) +1.5% gaining strength on institutional buying.



“Cement soon took charge with small caps leading volumes (Lafarge Pakistan (LPCL) +1.1% - bidding for acquisition in coming days); Kohat Cement (KOHC) +5% and Cherat Cement (CHCC) +4.8% on hopes of stellar earnings and hefty payout.

“Pakistan State Oil (PSO) -.9% closed red on profit-taking as stock bounced after shedding over 6% in two sessions. Additionally, Pakistan Petroleum (PPL) was also negative ahead of tomorrow’s announcement of floor price and its book building on 26th and 27th of this month.”

Taseen suggested that there will be significant anticipation of overwhelming local participation in PPL’s privatisation deal to keep investor interest alive albeit thin volumes.

Meanwhile, JS Global analyst Mujtaba Barakzai stated that the mixed sentiments witnessed were owing to a rollover of futures contract during the week, while investor interest in PPL is steadily building ahead of shares divestment by the Pakistan government.

“The government intends to offload 70.05 million shares of PPL next week. In banks, NBP (+0.1%) and UBL (+1.5%) stood strong on the back of attractive valuations,” said Barakzai.



The textile sector too remained in the limelight as investors expect earnings growth following announcement of the textile policy.

Trade volumes rose to 165 million shares compared with Monday’s tally of 133 million shares.

Shares of 350 companies were traded on Tuesday. At the end of the day, 175 stocks closed higher, 155 declined while 20 remained unchanged. The value of shares traded during the day was Rs8.73 billion.

Fauji Cement was the volume leader with 14.6 million shares, declining in 0.37 to finish at Rs19.42. It was followed by Byco Petroleum with 12.9 million shares, gaining Rs0.44 to close at Rs12.57 and Lafarge Pakistan Limited with 11.6 million shares, gaining Rs0.16 to close at Rs15.30.

Foreign institutional investors were net buyers of Rs699 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 25^th, 2014.

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