Market watch: Index falls below 30,000

Benchmark KSE-100 index decreases 155.53 points.

KARACHI:

The index slipped below the 30,000-point mark as lower volumes caused it to end in the red.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.52% or 155.53 points to end at 29,940.27

Elixir Securities analyst Harris Ahmed Batla said Pakistan equities opened positive but failed to sustain the 30,000-point barrier as investors remained sidelined.

“The volume chart was persistently dominated by small cap retail stocks while illiquid plays remained top gainers,” said Batla. “Oils continued to drag benchmark index in the red with Oil and Gas Development Corporation (OGDC) -1.00% and Pakistan State Oil (PSO) -1.01%.”



“News of government approving the Gas Infrastructure Development Cess Ordinance, 2014 for promulgation to collect the budgeted Rs145 billion for the current fiscal year kept fertiliser stocks in check.”

“Nishat Mills Ltd (NML) -2.21% underwent profit taking along with cements to the likes of Lucky Cement (LUCK) -.093%, Maple Leaf Cement (MLCF) -1.53% and Fauji Cement Co. (FCCL) -1.47%.”

Meanwhile, JS Global analyst Ovais Ahsan said local investors remained cautious after foreigners turned sellers yesterday.

“We expect the market to remain volatile on the back of political uncertainty and expect a short term correction,” said Ahsan.

Trade volumes fell to 154 million shares compared to Wednesday’s tally of 179 million.



Shares of 380 companies were traded on Thursday. Of these, 184 companies declined, 169 closed higher while 27 remained unchanged. The value of shares traded during the day was Rs8.5 billion.

Ghani Automobile was the volume leader with 8.0 million shares, gaining Rs0.67 to close at Rs6.34. It was followed by Dewan Motors with 6.17 million shares, gaining Rs0.64 to close at Rs7.16 and the Telelcard Limited with 5.9 million shares, gaining Rs0.43 to close at Rs4.00.

Foreign institutional investors were net sellers of Rs37 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 26^th, 2014.

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