Trade volumes rose to 262 million shares compared to 257 million on Friday. PHOTO: PPI
However, despite the excitement, the market closed the session in the red on Monday as other sectors failed to draw interest.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended the day’s trading with a decrease of 0.25% or 86.64 points to end at 34,570.30.
Elixir Securities analyst Haris Ahmed Batla said that stocks opened positive but failed to sustain the momentum as traders seemed cautious near 35,000 points, pushing the benchmark index into the red.
“Recovery in international crude failed to bring any excitement in oil,” said Batla. “Overall activity remained dull in oil with less than 200 million shares exchanging hands.”
However, the session was largely dominated by Engro Fertiliser (+3.84%) closing at its new high after the company announced a surprise Rs3 per share dividend against market expectation of Rs1 share, pushing its holding company, Engro Corporation (+3.56%), to its recent high.
“Moreover, the wider market remained lacklustre with financials and cements trading mixed and closing almost flat,” said Batla.
JS Global analyst Ovais Ahsan said the market saw profit-taking in the first session of the week with index heavyweights MCB Bank (-2.1%), Oil and Gas Development Company (-1%) and Fauji Fertiliser Company (-0.6%) seeing selling pressure.
According to Ahsan, news flow indicating that Pakistan would receive its first LNG cargo by month-end also induced buying interest in Engro Corp, which is the first to set up a handling terminal and is set to benefit from the arrival of LNG shipments.
“The cement sector saw intraday strength on the back of news that the World Bank has approved five energy projects. Lucky Cement (+1.43%) rallied with profit-taking in the latter half of the day.”
Trade volumes rose to 262 million shares compared to 257 million on Friday.
Shares of 372 companies were traded. Of these, 139 declined, 217 closed higher and 16 remained unchanged. The value of shares traded during the day was Rs17.7 billion.
Jahangir Siddiqui and Company was the volume leader with 35.1 million shares, gaining Rs0.11 to close at Rs21.35. It was followed by Engro Fertiliser Limited with 21.2 million shares, gaining Rs3.41 to close at Rs92.17 and TRG Pakistan Limited with 15.3 million shares, gaining Rs0.13 to close at Rs15.53.
Foreign institutional investors were net sellers of Rs530 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, February 10th, 2015.
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