Market watch: Turnover remains high as market ends positive again

Benchmark KSE-100 index rises 208.2 points.

KARACHI: The index continued its dream run as it ended another day in the black. While late profit-taking trimmed gains somewhat, the bourse still managed an increase of 208 points as volumes clocked in over 350 million shares.

At close on Wednesday, the Karachi Stock Exchange (KSE) benchmark 100-share index rose 0.61% or 208.20 points to close at 34,329.50.

Elixir Securities analyst Mohammad Zain said turnover in the wider market witnessed a sharp improvement with the most value traded on the KSE-100 in over five years.



“Momentum was primarily driven by fertilisers, namely Fauji Fertilizer (FFC PA +5%), as investors opted to build exposure in yield stocks,” he said.

“The auto sector also remained in the limelight with local buying interest in Indus Motors Company (INDU PA +5%) and Pak Suzuki Motors (PSMC PA +2.9%) on expectations of sales growth in forthcoming quarters.

“In textiles, Nishat Mills (NML PA +1.2%) managed to close in the black as investors focused on portfolio value and better outlook, while spinning player Nishat Chunian (NCL PA -4.4%) lost ground on weak margins.”

The analyst predicted high volatility in the upcoming trading sessions with resistance around 34,500.

Trade volumes slightly rose to 355 million shares compared to 315 million on Tuesday.

Shares of 400 companies were traded on Wednesday. Of these, 198 companies declined, 180 closed higher and 22 remained unchanged. The value of shares traded during the day was Rs21.9 billion.

Jahangir Siddiqui and Company was the volume leader with 29.7 million shares, gaining Rs0.90 to close at Rs18.95. It was followed by Fauji Fertilizer with 18.18 million shares, gaining Rs5.59 to close at Rs131.95 and K-Electric Limited with 16.58 million shares, losing Rs0.35 to close at Rs9.90.



Foreign institutional investors were net buyers of Rs111 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 22^nd,  2015.

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