Market watch: Index juggles between red and black, still ends positive

Benchmark 100-share index rises 35.41 points

Our Correspondent July 07, 2015
Trading volumes decreased to 442 million compared to 362 million on Monday. PHOTO: AFP

KARACHI: Pakistan equities, while slightly subdued and range-bound, continued to end in the black despite the selling spree in the latter part of the session.

The index consolidated recent highs after local energy companies traded lower on international oil prices that reacted over the potential fallout of Greece from the eurozone and possibility of a successful US-Iran nuclear deal.

At close on Tuesday, the benchmark Karachi Stock Exchange (KSE)-100 index gained 35.41 points or 0.10% to end at 35,537.69.

Elixir Securities analyst Sibtain Mustafa said cements continued to edge up with DG Khan Cement (DGKC PA +5%) trading and closing above its all-time highs as investors see local sales to see a sharp increase going forward.

“Other second- and third-tiers continued to dominate volumes with stocks posting hefty returns in last one month; rally in these third tiers have brought decent interests from day jobbers and speculators,” added Mustafa.

“Cements and other illiquids will continue to dominate returns and we eye 36,000 index ahead of the long Eid holidays, he said.

Meanwhile an analyst at JS Global said volatility prevailed in Tuesday’s session as the index continuously juggled between the red and black.

“Positivity was primarily led by cements and the banking sector on expectation of better financial results, keeping the investors interested in the sector.”

After an increase of 3.2% year-on-year in cements sales, the sector remains as the focal point for investors and the major contributor to the overall positive index as all major players closed positive.

Due to declining global oil prices, the exploration and production sector mostly remained in red.

Shares of 375 companies were traded on Tuesday. Of these, 196 companies closed higher, 155 fell and 24 remained unchanged.

Trading volumes decreased to 442 million compared to 362 million on Monday.

Byco Petroleum was the volume leader with 29.4 million shares gaining Rs1.36 to close at Rs28.64. It was followed by Jahangir Siddiqui and Company with 25.2 million shares, gaining Rs1.25 to close at Rs30.18 and Pakistan International Bulk Terminal with 23.9 million shares, gaining Rs1.82 to close at Rs40.93.

Foreign institutional investors were net sellers of Rs321 million worth of shares during the session, according to data compiled by the National Clearing Company of Pakistan.

Published in The Express Tribune, July 8th,  2015.

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