Market watch: Range-bound index ends in the red

Benchmark 100-share index loses 102.48 points.

KARACHI: The impending decision on Pakistan’s involvement in the Yemen conflict kept the index in check as investors exercised caution on the opening day of the week. The index remained range bound and ultimately settled in the red with activity largely seen in key sectors including cement, oil and gas.

At close on Monday, the Karachi Stock Exchange (KSE)-100 index closed at 32,248.45 on Monday, registering a decrease of 0.32% or 102.48 points.



Elixir Securities analyst Faisal Bilwani said equities closed negative amid institutional selling. “Despite early excitement following Habib Bank privatisation transaction, foreign selling and thin volumes pulled the index in negative,” said Bilwani. “Benchmark KSE100 trading remained in a narrow band while retail driven players topped volumes charts.

“Maple Leaf Cement (MLCF, +5% ) hit the upper price limit and traded against broader market as stock tracked flows while most cements names ended lower on profit taking.

“Pakistan Oilfields (POL , +0.9%)  was another outlier ending green after the company announced earnings that were largely in line with estimates.

“Overall, mood remained cautious and market struggled to find a clear direction as the government was due to make key announcements related to Pakistan’s decision on request for military support by Arab nations.”

JS Global analyst Arhum Ghous said bullish sentiment was recorded in the auto sector on the back of month-on-month  overwhelming sales number as Honda Atlas Cars closed +5%. “Profit taking was witnessed in the cement sector as FCCL, LUCK and CHCC closed down 0.9%, 1.5% and 2.0%, respectively.

Trade volumes fell to 263 million shares compared to 253 million on Friday.

Shares of 361 companies were traded on the opening day of the week.

Of these, 204 companies declined, 137 closed higher and 20 remained unchanged. The value of shares traded during the day was Rs14.3 billion.

Jahangir Siddiqui and Company was the volume leader with 32.8 million shares, losing Rs1.11 to close at Rs21.28. It was followed by Pak Elektron with 31.3 million shares, gaining Rs0.92 to close at Rs58.86 and K-Electric with 27.8 million shares, gaining Rs0.04 to close at Rs7.49.



Foreign institutional investors were net sellers of Rs438 million worth of shares during the session, according to data maintained by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 14^th,  2015.

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