KARACHI: The index ended in the red for the fourth successive time as law-and-order concerns gripped Karachi after an early-morning raid on MQM’s headquarters.
The stock market has endured a tough few weeks, owing to several reasons, and Wednesday’s session was no different. However, a recovery in the late hours of the day helped the index close near 32,500.
At close on Tuesday, the Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.08% or 26.98 points to end at 32,539.61.
Elixir Securities analyst Haris Ahmed Batla said the benchmark index traded as low as 31,199 but recovered mid-day to address the liquidity concerns.
“Recovery was mainly driven by Cement players namely DG Khan Cement (DGKC PA +1.33%), Maple Leaf Cement (MLCF PA+1.8%) and Cherat Cement (CHCC PA +2.38%),” he said. “The market continues to expect a monetary rate cut in the coming policy.
“Pak Elektron (PAEL PA +4.33%) was the highlight stock of the day, closing at its upper price limit following a clarification that the company was not involved in any sort of merger with Singer (SING PA -4.88%), ruling out concerns over a right share issue.”
Batla expected the market to sustain its momentum and test 32,800 in short, barring any negative developments on the political front.
Meanwhile, JS Global analyst Arhum Ghous said the upcoming news of gas tariff hike kept major scripts of the fertiliser sector in bearish momentum as FFBL, FFC and EFERT ended 3.5%, 1.0% and 0.3% lower, respectively.
Trade volumes rose to 172 million shares compared to 132 million on Tuesday.
Shares of 349 companies were traded on Wednesday. Of these, 188 declined, 137 closed higher and 24 remained unchanged. The value of shares traded during the day was Rs9.8 billion.
Pak Elektron was the volume leader with 23.7 million shares, gaining Rs2.27 to close at Rs54.70. It was followed by Fauiji Fertilizer Bin Qasim Limited with 9.7 million shares, losing Rs1.87 to close at Rs51.30 and the Bank of Punjab with 9.6 million shares, gaining Rs0.02 to close at Rs10.26.
Foreign institutional investors were net sellers of Rs1.1 billion worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, March 12th, 2015.
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