Market watch: Index ends week in the red

Benchmark KSE-100 index falls 97 points .

KARACHI: Pakistan equities closed the week negative after a positive open as selling pressure persisted in oil stocks on the back of declining global crude prices.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.31% or 97.75 points to end at 31,344.07.

According to Elixir Securities analyst Zainul Abedin, the deterioration has dented Pakistan Oil fields (POL -2.67%) and the Oil and Gas Development Company (OGDC -2.15%).



“On the contrary, strong anticipation over the discount rate cut in the upcoming monetary policy brought cements and textile into the limelight recovering from day’s low to close in green; namely Lucky Cement (LUCK +2.09%), DG Khan Cement (DGKC +1.32%) and Nishat Mills (NML +2.84%),” he said

“Clarity on the monetary policy will guide directions going forward. However, the benchmark index is expected to consolidate near the 32,000 mark.”

Meanwhile, JS Global analyst Muhammad Mobeen said that profit taking was witnessed at the bourse.

“Engro (+ 3.3%) remained the top pick following rumours of Engro Fertilizer secondary offering circulated the market where it would issue 300 million shares at Rs60.

“Mari enjoyed its northwards journey to hit the second consecutive upper circuit following Economic Coordination Committee’s approval of change in its pricing formula.



“We expect the market to gain momentum from these levels with textile sector as the top pick,” he concluded.

Trade volumes fell to 235 million shares compared to 305 million on Thursday.

Shares of 405 companies were traded on Friday. Of these, 189 companies declined, 201 closed higher while 15 remained unchanged. The value of shares traded during the day was Rs12.9 billion.

Jahangir Siddiqui and Company was the volume leader with 28.1 million shares, losing Rs0.24 to close at Rs13.71. It was followed by Soneri Bank Limited with 12.5 million shares, losing Rs0.30 to close at Rs13.86 and Maple Leaf Cement with 10.8 million shares, gaining Rs0.57 to close at Rs32.13.

Foreign institutional investors were net buyers of Rs38.18 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 15^th, 2014.

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