Market watch: Oils to blame for index slipping below 30,000
Amid mounting ambiguity regarding the privatisation of Oil & Gas Development Corporation (OGDC), the index slipped below the 30,000-point level.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.46% or 138.54 points to end at 29,982.45.
Pakistan equities closed negative for the third successive time with oils dragging the index into the red.
“Thursday was no different for index heavy names with OGDC -0.8%, Pakistan Oilfields (POL) -2.2%, Pakistan Petroleum (PPL) 1.2%,” said Elixir Securities analyst Faisal Bilwani.
“The day kicked off positive. However, bears soon took back control despite illiquid autos, consumers and peripheries testing fresh highs while small caps led volumes.
“With earning seasons round the corner, we expect fundamentals to get back in the limelight and index names particularly energy stocks to cover recent losses.
“Local investors will track foreigners’ activity and will not be aggressively building positions till clarity on direction and dust to settle on global commodities and regional market selloff.”
Meanwhile, Arif Habib Corporation analyst Ahsan Mehanti said stocks closed lower amid concerns for economic uncertainty and fate of privatisation process ahead of Supreme Court final verdict on OGDCL share sale.
“Rising trade deficit, limited foreign interest and major fall in global commodities played a catalyst role in bearish activity despite record overseas remittances of $4.69 billion during July-September expected to ease the current account deficit,” said Mehanti.
Trade volumes rose to 239 million shares compared to Wednesday’s tally of 212 million.
Shares of 389 companies were traded on Thursday. Of these, 182 companies declined, 187 closed higher while 20 remained unchanged. The value of shares traded during the day was Rs9.5 billion.
Ghani Automobile was the volume leader with 32.9 million shares, gaining Rs0.10 to close at Rs7.06. It was followed by Dewan Motors with 17.1 million shares, gaining Rs0.25 to close at Rs10.28 and Dewan Cement with 12.0 million shares, gaining Rs0.66 to close at Rs7.96.
Foreign institutional investors were net buyers of Rs117 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 17th, 2014.
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