Market watch: Stocks rise, recover previous day’s loss

Benchmark 100-share index gains 138.99 points

KARACHI: Equities closed in the green territory after listless trading with the benchmark index breaching key resistance at 32,200 points and recovering exactly what was lost a day earlier (139 points) on institutional buying.

At close on Wednesday, the benchmark Karachi Stock Exchange (KSE) 100-share index stood at 32,248.86, registering a rise of 0.43% or 138.99 points.

Elixir Securities analyst Jawwad Aboobakar said oil stocks, as expected, tracked gains in global crude markets and ended the day higher, led by Pakistan Petroleum (+1.5%).



Pakistan Telecommunication Company (-3.4%) closed lower after reporting quarterly earnings below estimates.

“Engro Corporation (-0.8%) opened positive, but rumours of foreign selling pulled the stock in the red while its listed subsidiary, Engro Foods (+5%) hit the upper price limit on buying led by local investors.”

He added cement shares namely Lucky Cement (-1.3%) and DG Khan Cement (-1.5%) were lower after DG Khan’s update on the progress on its plant in the southern region that sparked fresh concerns over pricing arrangements.

Maple Leaf Cement (+2.8%), however, remained immune to the sector’s movements and closed up on reported foreign buying.



“Going forward, earnings-related excitement can keep investor interest alive while fresh liquidity from unsuccessful HBL bids will find its way and is likely to push the index to test the 33,000 mark early next week.”

Trade volumes rose to 225 million shares compared to 217 million on Tuesday.

Shares of 342 companies were traded. Of these, 156 companies declined, 164 closed higher and 22 remained unchanged. The value of shares traded during the day was Rs11 billion.

Jahangir Siddiqui and Company was the volume leader with 27.7 million shares, gaining Rs1.01 to close at Rs21.24. It was followed by TRG Pakistan with 18.1 million shares, gaining Rs1 to close at Rs19.78 and Pak Elektron with 17.4 million shares, gaining Rs2.95 to close at Rs62.08.

Foreign institutional investors were net buyers of Rs413 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 16^th, 2015.

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