Market watch: Volumes healthy but index ends in the red

Benchmark KSE-100 index falls 47.97 points.

KARACHI:

The index failed to carry on its momentum as profit-taking took over the bourse but managed to sustain its level over 30,000.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.16% or 47.97 points to end at 30,095.80.

Elixir Securities analyst Sibtain Mustafa said morning gains soon surrendered after Oil and Gas Development Company (OGDC -2.35%) traded near its recent lowest as speculation over pricing of upcoming Global Depository Receipts by the government of Pakistan dented sentiments.



“Second- and third-tier stocks continued their momentum as flows from local individuals and prop books propelled pharmaceutical and the auto sectors,” said Mustafa.

“Nishat Mills (NML +3.73%) shined once more to make yet another recent-time highs as the depreciating rupee and lower cotton prices are expected to add more benefit in the coming quarters of the fiscal year.

“Speculation also kept prices of MARI (+5%) and SHEL (+5%) in the uppers limits due to upcoming results.

“We expect the market to trade in a range and possibly try another attempt to hit a new high,” added Mustafa. “However, the current momentum will provide opportunity to active traders due to low volumes and speculative spree being the dominant theme.”

Trade volumes rose to 179 million shares compared to Tuesday’s tally of 164 million.



Shares of 429 companies were traded on Wednesday. Of these, 201 companies declined, 205 closed higher while 23 remained unchanged. The value of shares traded during the day stood at Rs11 billion.

K-Electric Limited was the volume leader with 15.2 million shares, losing Rs0.35 to close at Rs7.76. It was followed by Nishat Mills with 5.18 million shares, gaining Rs4.41 to close at Rs122.72 and the Bank of Punjab with 5.17 million shares, gaining Rs0.04 to close at Rs8.07.

Foreign institutional investors were net sellers of Rs205 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 25^th, 2014.

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