Market watch: Stocks edge down in absence of triggers

Benchmark KSE-100 index drops seven points.

KARACHI:
The stock market closed little changed after listless trading as major investors preferred to stay on the sidelines ahead of year-end and in the absence of immediate triggers.

The Karachi Stock Exchange (KSE) benchmark 100-share index recorded a slight fall of 0.02% or seven points to end at 31,993.01.

“The day kicked off slow and turnover was thin in early trade barring Engro Fertilizers (+5%) and Engro Corporation (+3.4%) that gained on news of an increase in gas supply to the former’s urea plant,” said Faisal Bilwani of Elixir Securities.



“Our research has tweaked estimates and expects the 2015 EPS to increase by 49% to Rs12.36 for Engro Fertilizers and 36% to Rs34.54 for Engro Corporation.

Cement stocks were mixed while oil shares recorded a correction. Oil and Gas Development Company and Pakistan Petroleum Limited both fell 1% with the latter closing down despite announcing a hydrocarbon discovery with impact of over Rs1 on the EPS.

“We see stocks trading lacklustre with flows guiding direction as investors are likely to remain selective ahead of year-end. Illiquid stocks may see unusual moves in year-end window dressing while oil shares may experience a mild recovery on value buying,” Bilwani said.


Trade volumes fell to 209 million shares compared to 262 million on Wednesday.

Shares of 357 companies were traded. Of these, 192 companies declined, 144 closed higher and 21 remained unchanged. The value of shares traded during the day was Rs10.2 billion.

Pak Elektron was the volume leader with 18 million shares, gaining Rs1.84 to close at Rs38.76. It was followed by The Bank of Punjab with 16.7 million shares, gaining Rs0.02 to close at Rs10.86 and NIB Bank with 12.3 million shares, losing Rs0.01 to close at Rs2.38.



Foreign institutional investors were net sellers of Rs130 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 27th,  2014.

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