Market watch: Index back to downward trend
Benchmark 100-share index loses 196.87 points.
Benchmark 100-share index loses 196.87 points.
KARACHI:
After a much-needed relief on Monday, the index was back to its recently-acquired habit of ending in the red with pre-budget uncertainty and rumours over taxation continuing to dent sentiment at the bourse.
Banking scrips remained weak amid falling spreads, while cements took a hit on a day where investors opted to remain on the sidelines.
At close on Tuesday, the Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.60% or 196.87 points to end at 32,510.35.
According to Elixir Securities analyst Muhammad Zain, start of the roll-over week and budget-related rumours over taxation continued to dent sentiments.“With the exception of Pak Elektron, that traded over 12% of the total 100 index volumes, most stocks skewed to their recent history of turnover,” he said.
“Budget and politics seemed to dominate the theme and kept the market in a consolidative nature. “Record low interest rates, rising corporate profitability and higher allocation for equity investments for banks will likely yield positive run for KSE-100 in the next six months,” he noted, adding that after a recent rally of 11% rise in April, May could be termed as the consolidating month with the likelihood of new highs in the near future.
Meanwhile, Topline Securities analyst said investors took a fresh position in Pak Elektron (PAEL), up 2.9% amid aggressive future plans revealed by the management in their recent briefing.
Banking sector continued its downward trend. Trade volumes fell to 98 million shares compared to 179 million on Monday.
Shares of 326 companies were traded on Tuesday. Of these, 107 companies closed higher, 195 fell and 24 remained unchanged. The value of shares traded during the day was Rs6.3 billion.
Pak Elektron was the volume leader with 23.2 million shares, gaining Rs1.87 to close at Rs67.01. It was followed by Habib Bank Limited with 4.9 million shares, losing Rs0.87 to close at Rs193.06 and Fauji Cement with 4.5 million shares, losing Rs0.35 to close at Rs32.83.
Published in The Express Tribune, May 27th, 2015.
After a much-needed relief on Monday, the index was back to its recently-acquired habit of ending in the red with pre-budget uncertainty and rumours over taxation continuing to dent sentiment at the bourse.
Banking scrips remained weak amid falling spreads, while cements took a hit on a day where investors opted to remain on the sidelines.
At close on Tuesday, the Karachi Stock Exchange (KSE) benchmark 100-share index fell 0.60% or 196.87 points to end at 32,510.35.
According to Elixir Securities analyst Muhammad Zain, start of the roll-over week and budget-related rumours over taxation continued to dent sentiments.“With the exception of Pak Elektron, that traded over 12% of the total 100 index volumes, most stocks skewed to their recent history of turnover,” he said.
“Budget and politics seemed to dominate the theme and kept the market in a consolidative nature. “Record low interest rates, rising corporate profitability and higher allocation for equity investments for banks will likely yield positive run for KSE-100 in the next six months,” he noted, adding that after a recent rally of 11% rise in April, May could be termed as the consolidating month with the likelihood of new highs in the near future.
Meanwhile, Topline Securities analyst said investors took a fresh position in Pak Elektron (PAEL), up 2.9% amid aggressive future plans revealed by the management in their recent briefing.
Banking sector continued its downward trend. Trade volumes fell to 98 million shares compared to 179 million on Monday.
Shares of 326 companies were traded on Tuesday. Of these, 107 companies closed higher, 195 fell and 24 remained unchanged. The value of shares traded during the day was Rs6.3 billion.
Pak Elektron was the volume leader with 23.2 million shares, gaining Rs1.87 to close at Rs67.01. It was followed by Habib Bank Limited with 4.9 million shares, losing Rs0.87 to close at Rs193.06 and Fauji Cement with 4.5 million shares, losing Rs0.35 to close at Rs32.83.
Foreign institutional investors were net buyers of Rs18.7 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.
Published in The Express Tribune, May 27th, 2015.