Business

Market watch: Stocks end week almost flat despite gains

Benchmark KSE-100 index increases 35.13 points.

Our Correspondent January 30, 2015

Turnover in the wider market improved significantly, however, volumes were led primarily by small and mid-cap names. PHOTO: PPI

KARACHI: The stock index closed almost flat on Friday with gains in fertiliser and selected cement and financial shares countered by declines in oil stocks that remained out of focus on a gloomy earnings outlook.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index closed the day’s trading with a slight increase of 0.10% or 35.13 points at 34,443.87.

“Engro Fertilizers (+5%) hit the upper lock on rumoured progress on its secondary offering and expectation of a higher offer price than earlier anticipated while chatter of a possible dividend payout kept the stock firm at the day’s cap,” said Faisal Bilwani of Elixir Securities.

“The prime minister’s visit to the exchange during the second session and his assurances to the investment community of continued economic reforms failed to generate any excitement before the closing bell.”

Turnover in the wider market improved significantly, however, volumes were led primarily by small and mid-cap names.

“We expect investors to track political developments over the weekend as Imran Khan’s PTI renews the threat of protests, however, investors will be most sensitive to and will look forward to the CPI (Consumer Price Index) reading on Monday (we expect 3.9% year-on-year) that will likely reinforce the positive outlook,” Bilwani concluded.

Trade volumes rose to 348 million shares compared to 206 million on Thursday.

Shares of 352 companies were traded. Of these, 161 declined, 171 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs23.6 billion.

Fauji Fertilizer was the volume leader with 22.4 million shares, gaining Rs2.12 to close at Rs52.24. It was followed by Fauji Cement Limited with 22.3 million shares, gaining Rs1.06 to close at Rs30.33 and Pakistan Elektron with 21 million shares, gaining Rs2.27 to close at Rs52.98.

Foreign institutional investors were net buyers of Rs358 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 31^st, 2015.

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