Market watch: Index’s bull run ends, goes below 31,500

Benchmark KSE-100 index falls 187.38 points.

KARACHI: Declining oil prices in the global market and uncertainty over the monetary policy announcement kept investors at bay as the index ended its dream run to close in the red for the first time in two weeks.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.59% or 187.38 points to end at 31,441.82.

Elixir Securites analyst Harris Ahmed Batla said Pakistan equities opened positive and traded volatile, putting break to the recent rally with traders booking profits near 32,000.



“Declining international oil prices took its toll, pushing oil stocks in the red namely index heavy Oil and Gas Development Corporation (OGDC) -1.61%, Pakistan State Oil (PSO) -1.33% and Pakistan Oil fields (POL) -2.12%,” said Batla.

Batla added that Investors seemed cautious over mixed expectations on monetary policy due this weekend.

Batla also attributed the rise in political noise – the Anti-Terrorism Court (ATC) issued non-bailable arrest warrants for Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan and Pakistan Awami Tehreek (PAT) chief Dr Tahirul Qadri – to the index’s downfall as well.

Meanwhile, JS Global analyst Fahad M Ali said Engro Corporation remained strong throughout the day as rumours of Engro FertiliZer secondary offering circulated the market where it would issue 300 million shares at Rs60.0



Trade volumes fell to 305 million shares compared to 322 million on Wednesday.

Shares of 411 companies were traded on Thursday. Of these, 235 companies declined, 163 closed higher while 13 remained unchanged. The value of shares traded during the day was Rs16.5 billion.

Pakistan International Bulk Terminal was the volume leader with 20.1 million shares, gaining Rs0.86 to close at Rs23.91. It was followed by Jahangir Siddiqui and Company with 20.0 million shares, gaining Rs1 to close at Rs13.95 and Engro Fertilizer Limited with 14.9 million shares, gaining Rs0.95 to close at Rs64.78.

Foreign institutional investors were net sellers of Rs52.7 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, November 14^th, 2014.

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