Market watch: Index’s ride in the red continues

KARACHI: Pakistan equities closed in the red for the third successive day after traders seemed reluctant to make significant moves as  the earnings announcement season comes towards an end.

At close, the Karachi Stock Exchange (KSE) benchmark 100-share index declined 0.15% or 50.16 points to end at 33,845.30.



The market seems to be struggling to find a clear direction in the absence of immediate triggers,  according to Elixir Securities analyst Faisal Bilwani,  while day traders are also battling to find decent opportunities amid thin turnover.

“Fauji Fertilizers (FFC PA +2.9%) and Fauji Bin Qasim (FFBL PA 2.2%) attracted local buying on payouts,” he said. “Meanwhile, Indus Motors (INDU PA +5%) hit the upper price limit on rumours of a possible buyback.”

“Oils ended on a low tracking global crude prices, while financials were mixed with United Bank’s (UBL PA +.24%) 2014 earnings being inline and growing by 18% year-on-year, an insignificant event with respect to anxiety over foreign selling.”

The analyst added that earnings announcements by BAFL, NBP and FABL will keep the banking sector in the limelight, while broader market may see some improvement in volumes primarily in index names on institutional participation.

Trade volume fell to 140 million shares compared to 166 million on Tuesday.

Shares of 368 companies were traded on Wednesday. Of these, 218 declined, 131 closed higher and 19 remained unchanged. The value of shares traded during the day was Rs6.9 billion.

Jahangir Siddiqui and Company was the volume leader with 12 million shares, gaining Rs0.22 to close at Rs22.05. It was followed by the Pakistan International Airlines with 9.7 million shares, gaining Rs0.5 to close at Rs10.12 and Lafarge Pak with 9.6 million shares, gaining Rs0.17 to close at Rs18.01.



Foreign institutional investors were net sellers of Rs62 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 26^th,  2015.

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