Market watch: Index undergoes minute fall

Benchmark KSE-100 index decreases 39.19 points.

KARACHI: The index opened on a positive note before a corrective spell brought it down as outflow by foreign investors and profit-taking took centre stage.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.13% or 39.19 points to end at 30,355.22.

Elixir Securities analyst Sibtain Mustafa said United Bank (UBL PA -2.1%) led the decline mainly on rumours of selling by foreigners albeit on low volumes, while volumes charts were dominated by second and third-tier stocks with majority of retail favourites.



“Cements stood firm ground as decline in international coal prices, higher retention prices and continued month-on-month improvement in local sales helped channel institutional money to the sector.

“Oil & Gas Development Company’s (OGDC PA -1% GDS) issue remains in question as Supreme Court deferred hearing till October 28, while the privatisation minister continues to stress that the government will conclude the transaction soon,” said Sibtain.

“We expect the market to trade range-bound on mixed bag of economic and political news while continued FII sells might push for a correction and revisit 29,800-29,600 in the immediate future,” he said.

Meanwhile, JS Global analyst Ovais Ahsan said the banking sector was the main index driver with MCB Bank (+1.5%) and Habib Bank (+4.8%) gaining on expectation of record profitability and secondary offerings in the sector.



“Engro Corporation (+2.4%) gained on expectation of an improved bottom line for its fertiliser unit as GIDC tax status remained in limbo,” said Ahsan. Trade volumes fell to 218 million shares compared to Monday’s tally of 251 million.

Shares of 414 companies were traded on Tuesday. The value of shares traded during the day was Rs9.9 billion.

Lafarge Pakistan was the volume leader with 17.4 million shares, gaining Rs0.22 to close at Rs16.90. It was followed by TRG Pakistan (R) with 11.8 million shares, gaining Rs0.49 to close at Rs1.16 and Ghani Automobile with 11.5 million shares, losing Rs0.66 to close at Rs6.03.

Foreign institutional investors were net sellers of Rs432 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, October 15^th, 2014.

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