KARACHI: Pakistan equities traded volatile with the benchmark index testing 31,000 intraday before recovering sharply to close over 31,223.
At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index declined 0.30% or 93.22 points to end at 31,223.74.
Volumes remained low during early trade, according to Elixir Securities analyst Harris Ahmed Batla, as index heavy oils namely Oil and Gas Development Company (OGDC PA -.93%), Pakistan Oil Fields (POL PA -.78%) and Pakistan Petroleum Limited (PPL PA -.61%) dented sentiments tracking falling international oil prices.
“Financials lost grounds on reported institutional selling with MCB Bank (MCB PA –1.95%) and United Bank Limited (UBL PA -2.26%),” said Batla.
“On the contrary, Engro Corp (ENGRO PA +4.39%) regained limelight and led the recovery hitting its upper price limit intraday as investors betted on concessionary gas supply to its subsidy along with rumoured Secondary Public Offering (SPO) helping the overall momentum.
JS Global analyst Arham Ghous said the ongoing political situation has caused the market to remain depressed with volumes also staying dull.
“During the last trading hour, the market recovered more than 250 points after news of Moody’s Investors Service assigned a provisional (P) Caa1 senior unsecured rating to the proposed US dollar Trust Certificates to be issued by The Second Pakistan International Sukuk Company Limited, a special purpose vehicle established in Pakistan, by the Islamic Republic of Pakistan.”
“We expect the textile sector to remain under pressure due to the delay in textile policy,” Ghous said.
Trade volumes fell to 159 million shares compared to 200 million on Monday.
Shares of 370 companies were traded on Tuesday. Of these, 194 companies declined, 156 closed higher while 20 remained unchanged. The value of shares traded during the day was Rs10.8 billion.
Jahangir Siddiqui and Company was the volume leader with 16.1 million shares, gaining Rs0.32 to close at Rs16.41. It was followed by Pakistan International Airlines Company with 11.8 million shares, losing Rs0.05 to close at Rs7.06 and Maple Leaf Cement with 8.9 million shares, gaining Rs0.60 to close at Rs33.67.
Foreign institutional investors were net sellers of Rs586 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 26th, 2014.
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