Business

Market watch: Index rides in red despite foreign net buying

Benchmark 100-share index falls 115.93 points.

Our Correspondent April 29, 2015

Shares of 375 companies were traded on Wednesday. PHOTO: ONLINE

KARACHI: The index continued to consolidate amid declining volumes, registering another day in the red, as earnings announcements continued. Activity was largely seen in the banking sector as cements followed and despite foreign interest, the index was unable to sustain its upward ride.

At close on Wednesday, the benchmark index stood at 33,460.01, registering a fall of 0.35% or 115.93 points.

After an initial burst in the black, the index hit its lowest point around mid-day, recovering to settle around the 33,460-point level.

“Faysal Bank (FABL +4.2%) posted significant gains after announcing earnings above expectation with an Earnings per Share of Rs1.8. It remained the leader in stocks traded throughout the day,” stated Topline Securities.

“Indus Motors (INDU) also announced impressive results and it is expected to rally (on Thursday).

Interest was seen in both Engro Corporation (ENGRO) and Engro Fertilizer (EFERT) after Engro, through a KSE notice, announced sale of 7% shares of its subsidiary EFERT through private placement. Moreover, it informed that IFC has agreed to take a 20% stake in Elengy Terminal Pakistan, another subsidiary of Engro.

KASB Bank’s share saw a plunge. Following approval of its amalgamation with Bank Islami, KSE suspended trading in KASB Bank for a period of 60 days. Trade volumes fell to 228 million shares compared to 330 million on Tuesday.

Shares of 375 companies were traded on Wednesday. Of these, 122 companies closed higher, 239 saw a decline and 14 remained unchanged. The value of shares traded during the day was Rs9.2 billion.

Faysal Bank was the volume leader with 47.5 million shares, gaining Rs0.67 to close at Rs17.7. It was followed by Byco Petroleum with 30 million shares, gaining Rs0.74 to close at Rs13.44 and the Bank of Punjab with 22.4 million shares, losing Rs0.22 to close at Rs10.08.

Foreign institutional investors were net buyers of Rs108 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, April 30^th, 2015.

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