Market watch: Gains turn sour as index ends marginally red

Benchmark 100-share index falls 6.43 points.

KARACHI: After trading mostly in the black, the index plunged to end marginally negative on the opening day of the week. Profit-taking and panic selling led the fall as the Karachi Stock Exchange (KSE) benchmark index stood ground over the 33,700 level.

At close on Monday, the index stood at 33,723.53 points, registering a decrease of 0.02% or 6.43 points.

Elixir Securities analyst Faisal Bilwani said the day’s gains were wiped out in the closing minutes on panic-induced selling. “Stocks opened positive and managed to maintain momentum despite inflation reading for April 2015 at 2.11% year-on-year against the consensus 1.76% year-on-year,” said Bilwani.



“Engro Corporation (ENGRO,-2.2%) and Engro Fertilizers (EFERT, +1.9%) added to recent gains at intra-day post private placement transaction.

“Mood turned sour and stocks nosedived after election tribunal that is probing rigging allegations in 2013 elections ruled in favour of Imran Khan-led PTI and announced re-polling on a key National Assembly seat held by a federal minister.”

Bilwani concluded that panic selling on fear of political instability pulled KSE100 to test 33,650, a sharp dip in the last 15 minutes.

Topline Securities analyst said that interest was seen in Pakistan Oilfields Limited (+ 1.6%) as it announced a discovery in Tal Block. Additionally, EFERT rallied 1.6% after news that private placement was oversubscribed.

Trade volumes rose to 206 million shares compared to 190 million on Thursday.

Shares of 357 companies were traded on Monday. Of these, 138 companies closed higher, 205 saw a decline and 14 remained unchanged. The value of shares traded during the day was Rs14.8 billion.



Byco Petroleum was the volume leader with 20.2 million shares, losing Rs0.81 to close at Rs12.21. It was followed by K-Electric Limited with 17.1 million shares, gaining Rs0.06 to close at Rs7.56 and Fauji Cement with 15 million shares, gaining Rs0.08 to close at Rs33.77.

Foreign institutional investors were net buyers of Rs56 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, May 5^th,  2015.

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