Market watch: Index ends marginally in the red

Benchmark KSE-100 index falls 31.24 points.

KARACHI: Range-bound trading continued as the market flirted with the 34,000-point level as the early-morning rise was countered by bearish activity in the latter half of the day.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index declined 0.09% or 31.24 points to end at 33,895.46.

Elixir Securities Haris Ahmad Batla said morning news of withdrawal of tax exemption for foreign investors kept locals institutions on the sideline, as they chose to track wider market direction.



“Earning announcements for textile plays, Nishat Mills Limited (NML PA -1.25%) and Nishat Chunain Limited (NCL PA +0.06%), were recorded higher than market expectations but periodic decline in bottom line restricted any excitement,” he said.

“Nishat Chunain Power Company Limited (NCPL PA -0.86%) closed in the red despite declaring a Rs2 per share cash dividend against market expectation of Rs1.5 per share.

“Oils remained dull, while cements and financials traded lacklustre with the exception of MCB Bank (MCB PA +1.84%) that gained on reported local institutional interest,” remarked Batla.

Meanwhile, JS Global analyst Mohammad Mobeen said star stock for the day was Jubilee Life Insurance (+4.5%), over anticipation of its financial results.

“Due to international crude oil trading below $60 per barrel, the OMC sector faced pressure with POL (-1.1%), OGDC (-0.4%) and ATRL (-0.8%) closing in the red.

“Along with the oil, the cement sector also remained under pressure due to market rumours of cement cartel being broken as DG Khan Cement is planning to undergo massive expansion.”

Trade volume fell to 166 million shares compared to 172 million on Monday.

Shares of 376 companies were traded on Tuesday. Of these, 255 declined, 102 closed higher and 19 remained unchanged. The value of shares traded during the day was Rs8.7 billion.



Bank of Khyber was the volume leader with 14.4 million shares, gaining Rs0.11 to close at Rs9.87. It was followed by K-Electric Limited with 10.9 million shares staying stable at Rs8.33 and Jahangir Siddiqui and Company with 10 million shares, losing Rs0.23 to close at Rs21.83.

Foreign institutional investors were net sellers of Rs139 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 25^th,  2015.

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