Market watch: Stocks end in the negative amid political noise

Benchmark KSE-100 index decreases 138.45 points.

KARACHI: The stock market opened the week on a positive note, but ended the day with a decline in the wake of growing political noise.

At close, the Karachi Stock Exchange’s (KSE) benchmark 100-share index showed a decrease of 0.43% or 138.45 points to end at 32,010.33.

Elixir Securities analyst Harris Ahmed Batla said the equities opened positive but failed to carry the momentum, which was due to oil stocks that sank following the decline in international oil prices.



“Rise in the political noise with the start of a protest drive from Faisalabad by the Pakistan Tehreek-e-Insaf (PTI) kept trading activity at the minimum.”

According to Batla, the volume charts were dominated by small retail players while tier-one banks and cement companies experienced profit-taking at relatively low volumes.

“Moreover, the decision of the Economic Coordination Committee to inject $16.46 million into cash-starved Pakistan International Airlines (PIA, +5.66%) kept the stock in the limelight.”

He concluded that political developments would likely set the momentum in the ongoing week while value buying in cement and textile companies would attract interest at lows.

JS Global analyst Arhum Ghous added that the oil and gas sector remained under pressure due to low international crude prices.

Trade volumes fell to 186 million shares compared to 286 million on Friday.

Shares of 360 companies were traded. Of these, 193 companies declined, 141 closed higher and 26 remained unchanged. The value of shares traded during the day was Rs8.7 billion.



The Bank of Punjab was the volume leader with 14 million shares, gaining Rs0.12 to close at Rs9.17. It was followed by TRG Pakistan with 11.7 million shares, gaining Rs0.04 to close at Rs13.94 and Pakistan International Airlines with 10.8 million shares, gaining Rs0.43 to close at Rs8.03.

Foreign institutional investors were net sellers of Rs151 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, December 9^th,  2014.

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