Market watch: Stocks fall due to continuous volatility

Benchmark KSE-100 index drops 228 points.

Our Correspondent February 11, 2015
Trade volumes slightly declined to 258 million shares compared to 265 million on Tuesday. PHOTO: AFP

KARACHI: Stocks ended lower on Wednesday after a volatile trading session that tested the nerves of investors during the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended the day’s trading with a decrease of 0.66% or 228.90 points at 34,203.99.

Elixir Securities analyst Jawwad Aboobakar said that the market opened up on the back of a rally in cement stocks.

“Reported institutional selling in fertilisers wiped morning gains pushing Engro Fertilizers (-4.78%) and Engro Corp (-4.43%) to the lower price limit,” he said.

Meanwhile, financial institutions traded directionless barring United Bank Limited (+0.35%) and Habib Bank (-1.34%) which closed lower on reported foreign selling.

The data released for auto sales later in the day reflected a phenomenal month-on-month growth, pushing up Pak Suzuki Motor Company (+2.41), Indus Motor (+1.51%) and Honda Car (+4.64%). They notched growth of 28%, 57% and 367% respectively.

The analyst expected the market to continue to trade volatile with oil stocks tracking the international crude movement. He recommended staying long in yield stocks namely FFC, Hubco and NBP.

Trade volumes slightly declined to 258 million shares compared to 265 million on Tuesday.

Shares of 375 companies were traded. Of these, 213 declined, 140 closed higher and 22 remained unchanged. The value of shares traded during the day was Rs16 billion.

Jahangir Siddiqui and Company was the volume leader with 25 million shares, gaining Rs1.01 to close at Rs22.60. It was followed by Pak Elektron with 24.7 million shares, losing Rs0.06 to close at Rs58.13 and K-Electric Limited with 17.9 million shares, gaining Rs0.12 to close at Rs8.44.

Foreign institutional investors were net sellers of Rs573 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 12th,  2015.

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