Market watch: Index ends week on a low as investors remain cautious

Benchmark KSE-100 index decreases 99.35 points.

KARACHI: Pakistan equities closed the week red for the fourth consecutive time amid thin volumes with turnover lower by 28% against this week’s average.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.33% or 99.35 points to end at 29,883.10.

“Investors traded cautiously ahead of a busy weekend on the political front as the largest opposition party PPP hosts a gathering of supporters in Karachi,” said Faisal Bilwani of Elixir Securities.

“Moreover, no clarity on the OGDC transaction and anxiety over possible selling by foreigners dampened the mood and kept major investors on the sideline.



“Oil yet again hurt sentiment, however, OGDC witnessed volatile trading and managed to close little changed.

“Volumes were led by the Pakistan Telecommunication Company Limited (PTCL PA -4%) that announced disappointing earnings and hit lower lock intraday while we see news flow over new telecom policy to keep stock in limelight for the next few sessions,” he said.

“We expect events on the political front over the weekend to guide direction early next week while a galore of earnings announcements in coming days will keep stock and sector specific interest alive and KSE-100 to hover near 30,000,” he concluded.

Trade volumes fell to 159 million shares compared to Thursday’s tally of 239 million.

Shares of 381 companies were traded on Friday. Of these, 220 companies declined, 146 closed higher while 15 remained unchanged. The value of shares traded during the day was Rs7.2 billion.



PTCL was the volume leader with 22.2 million shares, losing Rs0.93 to close at Rs22.15. It was followed by Ghani Automobile with 13.5 million shares, losing Rs0.65 to close at Rs6.41 and Pervez Ahmed with 8.1 million shares, gaining Rs0.02 to close at Rs3.62.

Foreign institutional investors were net sellers of Rs135 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 18^th, 2014.

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