Business

Market watch: Index falls below 30,000

Benchmark KSE-100 index decreases 21.93 points.

Our Correspondent September 22, 2014

KARACHI: The index lost ground over the 30,000-point level after the market experienced a slow day as caution prevailed. Lack of triggers and continued political uncertainty kept investors on the sideline.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.07% or 21.93 points to end at 29,993.87.

Elixir Securities’ Faisal Bilwani said Pakistan equities closed little changed after an uneventful day with KSE100 index closing just below 30,000. “Disappointing $25 million worth of shares changed hands with blue-chips seeing little interest and institutions waiting for clarity on politics.

“Anxiety over macros continues to dampen the mood as flood damage still needs to be quantified and ongoing political stalemate keeps administration’s attention distracted,” said Bilwani.

“Small caps led volumes while gains and unusual turnover in illiquids kept downside in check.” Bilwani concluded that the ongoing trading pattern will hold for the coming days on lack of interest and immediate triggers with
KSE-100 index trading in a narrow band of 200-300 points.

Meanwhile, JS Global analyst Ovais Ahsan said the market continued to tread cautiously as investors refrained from taking any bets in a volatile political situation.

“The SBP’s decision to keep interest rates unchanged was largely in line with market expectation and the announcement on Saturday was mostly seen as a non-event in terms of market impact.”

Trade volumes fell to 115 million shares compared to Friday’s tally of 150 million.

The value of shares traded during the day stood at Rs4.99 billion. Pak Elektron Limited was the volume leader with 11.7 million shares, losing Rs0.34 to close at Rs29.32. It was followed by Descon Chemical with 4.6 million shares, gaining Rs0.29 to close at Rs3.73 and Lafarge Pakistan with 4.5 million shares, gaining Rs0.24 to close at Rs16.80.

Foreign institutional investors were net buyers of Rs203 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 23^rd, 2014.

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