Market watch: Minor correction as oil keeps market in check

Benchmark KSE-100 index falls 89.06 points.

KARACHI: The index opened negative and traded lower as the broader market tracked regional losses with investors booking gains in cement and textile plays.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.27% or 89.06 points to end at 32,668.73.

Elixir Securities analyst Harris Ahmed Batla said the continuous decline in West Texas Intermediate (WTI) Crude kept oil stocks in red including Pakistan Oil Fields (POL PA -3.25%) and Pakistan State Oil (PSO PA -1.8%),with an exception of index heavy Oil and Gas Development Company (OGDC PA +.42%) that closed in black on reported foreign interest.

“Reported objection by the fertiliser industry over extended gas supply to Engro Fertilizers (EFERT PA -2.66%) kept the stock under pressure along with its holding company Engro Corporation (ENGRO PA -2.3%).



“Anticipation over discount rate cut kept banking stocks in check,” said Batla.

Meanwhile, JS Global analyst Syed Faran Rizvi said the market witnessed a correction with participants booking profits at all-time high levels. Weakness in the regional markets was also a reason for pessimism.

“The star performer of the day was K-Electric +1.9% as the stock price reached its all-time high in the last 52 weeks. The stocks optimism was derived from strong operational performance, new project initiations, and expectation of pay-outs to minority holders in the near future.

“The oil and gas sector remained under pressure due to record low international oil prices keeping most of the sector in red,” said Rizvi.

Trade volumes fell to 255 million shares compared to 329 million on Monday.

Shares of 372 companies were traded on Tuesday. Of these, 215 companies declined, 137 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs14.4 billion.



Pak Elektron was the volume leader with 24.6 million shares, losing Rs0.31 to close at Rs46.39. It was followed by K-Electric Limited with 19.3 million shares, gaining Rs0.19 to close at Rs10.19 and Jahangir Siddiqui Company with 16.5 million shares, losing Rs0.03 to close at Rs15.68.

Foreign institutional investors were net sellers of Rs369 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, January 7^th,  2015.

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