Market watch: Stocks fail to excite investors

Benchmark KSE-100 index falls 21.10 points.

Our Correspondent July 15, 2014


The index traded range bound to settle in the red as investors remained selective while volumes stayed relatively reasonable compared to the past week.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.07% or 21.10 points to end at 29,683.97.

“Contrary to overall market sentiment, Oil and Gas Development (OGDC PA +1.15%) gained over reported foreign interest,” said Fareesa Baig of Elixir Securities.

“While Pakistan Telecom (PTC PA +0.41%) managed to trade decent volumes over its second quarter earnings that clocked in at Rs0.76/share, down 14.6% YoY, along with an interim cash dividend of Rs1/share. “Pakistan State Oil (PSO PA -1.57%) saw investor interest, however, early morning gains were wiped out by institutional selling in the name during the latter half of the trading session.

“While activity remains dull and locals stay on the sidelines, concerned over the upcoming political demonstrations, we expect the earnings to stir interest and payout stories like KAPCO, POL, APL, UBL, HBL among others to entice investors,” said Baig.

Meanwhile, Mujtaba Barakzai of JS Global said that range bound activity was witnessed across the board.

“However, positive sentiments were witnessed in index heavy weight OGDC, with rumored foreign buying.

“In the banking sector, MCB and UBL witnessed decent turnover of 0.1 million and 2.6 million shares on expectations of strong 2Q2014 results.

“We expect the arrival of the result season to boost investors’ activity. PTC announced 1H2014 EPS of Rs1.62 with an interim cash payout of Re1/share. Volume leaders were FCCL, PAEL, and HASCOL,” he concluded.

Trade volumes rose to 107 million shares compared with Monday’s tally of 91 million.

Shares of 327 companies were traded on Tuesday. At the end of the day, 106 stocks closed higher, 188 declined while 33 remained unchanged. The value of shares traded during the day was Rs6.1 billion.

Fauji Cement was the volume leader with 12.6 million shares, gaining Rs0.13 to finish at Rs19.95. It was followed by Pak Elektron Limited with 7.5 million shares, gaining Rs0.37 to close at Rs28.41 and Hascol Petrole with 6.2 million shares, losing Rs1.35 close at Rs86.12

Foreign institutional investors were net buyers of Rs197 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, July 16th, 2014.

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