Market watch: Index closes marginally in the red

Benchmark KSE-100 index falls 13.34 points

KARACHI: The index opened positive as cements continued to churn volumes, trading over 10 million shares before mid-day selling by leading institutions dragged the index in the red.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.04% or 13.34 points to end at 30,225.62

“Textiles are gradually coming back in favour and spinners would likely gain from lower cotton prices,” said Elixir Securities analyst Sibtain Mustafa.

“Pakistan State Oil (PSO PA +2.1%) surprised investors with first-quarter earnings and closed positive on trimmed gains as profit-bookers rushed in to take advantage of the euphoria.”



“Financials continue to hold ground with United Bank (UBL PA +1%) leading despite announcing earnings that were slightly off estimates.

“Expectations of lower inflation and a possible cut in discount rate in the upcoming monetary policy will yield huge gains on debt market portfolios,” said Mustafa.

Meanwhile, JS Global analyst Fahad Ali said the textile and auto sectors were attractive for investors who are anticipating a positive textile and auto policy to be presented in the Economic Coordination Committee meeting.

“Top gainers today were Pak Suzuki Motor (+5.0%), Cherat Cement (+5.0%), and Nishat Power (+5.0%).

“We expect the market to be positive, while interest in textile and automobile sector will persist,” he said.

Trade volumes rose to 165 million shares compared to 145 million on Monday.



Shares of 408 companies were traded on Tuesday. Of these, 232 companies declined, 154 closed higher while 22 remained unchanged. The value of shares traded during the day was Rs9.4 billion.

Maple Leaf Cement was the volume leader with 11.5 million shares, gaining Rs0.73 to close at Rs30.01. It was followed by the Lafarge Pakistan with 11.3 million shares, losing Rs0.37 to close at Rs15.95 and Fauji Cement with 6.3 million shares, losing Rs0.64 to close at Rs21.41.

Foreign institutional investors were net sellers of Rs260 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 29^th, 2014.

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