Market watch: Despite foreign buying, index ends red

Benchmark 100-share index falls 268.87 points, ends at 33,035.77.

KARACHI: Pakistan equities closed in the negative, managing to sustain over 33,000 as volatile trading took its toll on the index.

Investors were alarmed after Monday’s correction and morning news of the tax authority stepping up to keep a check on evaders by gathering market trade data.

At close, the benchmark Karachi Stock Exchange (KSE) 100-share index stood at 33,035.77, registering a fall of 0.81% or 268.87 points.

Elixir Securities analyst Faisal Bilwani said excitement over MoUs on infrastructure and energy projects signed during Chinese president’s visit and bets over profits and pay-outs helped limit downside with reports of foreign buying in index names helping trim mid-day gains.



“Index-heavy Oil and Gas Development Company (-2%) that was negative on very thin volumes did the most damage, while Engro Foods (EFOODS PA +5%) supported the benchmark, trading at upper price limit as company’s bottom line grew by near four times in the first quarter (earnings announced on Monday),” he said.

“On-going earnings season will ensure it is not too boring of a market while month of May could see relatively dull activity as history suggests limited participation ahead of federal budget due early June,” Biwani added.

JS Global analyst Ahmed Saeed Khan, on the other hand, was of the view that due to a 16% YoY decline in textile exports, the whole sector remained under pressure where GATM, NML, NCL and KTML all closed down 4.96%, 4.17%, 3.33% and 2.57%, respectively.

“Better-than-expected financial results led the rally of EFOODS and SEARLE +4.57%,” said Khan, adding that as global oil prices drop, index heavy weight oil sector remained under pressure with the exception of PPL and APL that barely remained in green.

Trade volumes rose to 251 million shares compared to 242 million on Monday.

Shares of 347 companies were traded. Of these, 85 companies closed higher, 239 saw a decline and 23 remained unchanged. The value of shares traded during the day was Rs13.7 billion.

Pak Elektron was the volume leader with 29.5 million shares, losing Rs0.51 to close at Rs60.72. It was followed by the Bank of Punjab with 24.3 million shares, gaining Rs0.19 to close at Rs9.13 and TRG Pakistan Limited with 18.6 million shares, losing Rs0.29 to close at Rs19.90.

Foreign institutional investors were net buyers of Rs742 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 22^nd,  2015.

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