Market watch: Index finds resistance, falls 268 points

Benchmark 100-share index ends at 33,575.94.

KARACHI: The 34,000-point barrier seemed too much for the Karachi Stock Exchange (KSE) 100-share index as Pakistan equities – after a positive start – found resistance and closed negative.

Investors opted to book profits in absence of any major news flow as institutional selling in the wider market dominated.

At close on Tuesday, the benchmark index stood at 33,575.94, registering a fall of 0.79 % or 268.36 points.



Elixir Securities analyst Haris Ahmed Batla said that despite outperforming market expectations in its quarterly result announcement, MCB Bank (MCB PA -2.16%) faced selling pressure along with Engro Corp (ENGRO PA -2.38%) where the latter failed to meet consensus estimates.

“On the contrary, Engro Fertilizer (EFERT PA +2.28%) attracted institutional interest as traders seemed keen to own the stock ahead of its private placement of 100 million shares starting today (Wednesday),” said Batla.

“Small cap retail plays continued to dominate volumes chart led by Bank of Punjab (BOP PA +3.73), Jahangir SIddiqui (JSCL PA +1.53%) and Pak Elektron (PAEL PA-1.09%), said Batla.

Meanwhile, Topline Securities stated said that volumes increased by 25% but the value traded declined by 26% to Rs11.9mn (US$116.4million) — due to interest in small-cap stocks.

“Small cap stocks like Bank of Punjab (BOP) and KASB Bank (KASBB) witnessed huge volumes of 74 million and 64 million shares, respectively.”



“Bank of Punjab saw interest after its announced healthy 1Q2015 results, while KASB Bank fell by 27.9% after it informed that SBP has initiated the process of amalgamation of KASB Bank with and into Bank Islami Pakistan (BIPL),” they further added.

Trade volumes rose to 330 million shares compared to 263 million on Monday.

Shares of 382 companies were traded on Tuesday. Of these, 115 companies closed higher, 247 saw a decline and 20 remained unchanged. The value of shares traded during the day was Rs11.8 billion.

The Bank of Punjab was the volume leader with 79 million shares, gaining Rs0.37 to close at Rs10.30. It was followed by KASB Bank Limited with 67.7 million shares, losing Rs0.94 to close at Rs2.43 and Jahangir Siddiqui and Company with 27.2 million shares, gaining Rs0.32 to close at Rs21.28.

Foreign institutional investors were net buyers of Rs341 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 29^th, 2015.

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