Market watch: Despite lacklustre trading, bourse ends in black

Benchmark KSE-100 index increases 143.31 points.

KARACHI:

Despite caution still prevailing at the bourse, the index closed the day positive as the outcome of ongoing negotiations between the government and protesting parties remains pending.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index gained 0.48% or 143.31 points to end at 29,728.91.

“In the absence of major triggers and lack of clarity on the political front, we see the index to resist 29,800,” said Elixir Securities analyst Harris Ahmed Batla. “However, an agreement between the government and protesters will push the market beyond 30,000 with financials and energy leading the bourse.



“Sector-specific stories kept select names in the limelight with auto and parts makers gaining on lower Japanese yen; Honda Car (HCAR PA +5%) hitting upper price limit along with Indus Motors (INDU PA +4%) and Pak Suzuki Motors (PSMC PA +4.7%) closing up.”

Meanwhile, JS Global analyst Fahad M Ali said that positivity continued at the bourse, though volumes remained low as well as participation by institutions.

“The pharmaceutical sector continued to perform well, where ABOT and FEROZ closed up by 5% at their upper circuits. Accumulation was also seen in the textile sector on the back of higher expectations of cotton bales for the current year.

“We expect the market to remain range bound and consolidate within a band of 500 to 700 points until we see political certainty,” said Ali.

Trade volumes rose to 133 million shares compared to Monday’s tally of 89 million.

Shares of 403 companies were traded on Tuesday. Of these, 147 companies declined, 235 closed higher while 21 remained unchanged. The value of shares traded during the day stood at Rs6.9 billion.



TRG Pakistan Limited (R) was the volume leader with 11 million shares, gaining Rs0.21 to close at Rs2.72. It was followed by TRG Pakistan Limited with 7.9 million shares, gaining Rs0.15 to close at Rs12.16 and PICIC Investment Fund with 6.9 million shares, gaining Rs0.07 to close at Rs14.69.

Foreign institutional investors were net buyers of Rs375 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, September 10^th, 2014.

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